IPO Details
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IPO Size
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Schedule of Shringar House of Mangalsutra Ltd
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About Shringar House of Mangalsutra Ltd IPO
The IPO of Shringar House of Mangalsutra Ltd comprises only a fresh issue of up to 24,300,000 equity shares of face value of ₹10 each. It’s a 100% book-built issue. The IPO opens on TBA and closes on TBA. The credit of shares will take place on TBA. The basis of allotment will take place on TBA and the initiation of refunds will take place on TBA.
Objectives of Shringar House of Mangalsutra Ltd IPO
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Funding working capital requirements of the company
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General corporate purposes
Shringar House of Mangalsutra Ltd IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | Up to 24,300,000 equity shares |
Offer for Sale | NA |
EPS in ₹ for FY 24 | 4.39 |
Shringar House of Mangalsutra Ltd Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the issue |
Non-institutional Bidders | Not less than 15% of the issue |
Retail Individual Bidders | Not more than 35% of the issue |
Industry Outlook
In CY23, the Indian mangalsutra market reached ₹178 billion showing a y-o-y growth of ~16%. The market is expected to grow at a compounded annual growth rate (CAGR) of 5.8% in the next 10 years to ₹303 billion in CY32.
The trend towards customisation and personalisation is growing in the jewellery industry, including for mangalsutras. Customers increasingly seek unique designs tailored to their tastes and preferences. Customisation options, which allow clients to choose specific patterns, designs, and materials, are becoming more popular among jewellers. This trend for personalised mangalsutras meets the desire for distinctiveness and individual expression.
Company Information
Shringar House of Mangalsutra Ltd is amongst the leading and specialised designers and manufacturers of mangalsutras in India. For the uninitiated, Mangalsutra is a traditional necklace, crafted from gold and black beads worn by married Indian women that symbolises marital status and is a sacred thread that is believed to bless and extend the life of the spouse.
The company is engaged in designing, manufacturing, and marketing, a varied range of Mangalsutra studded with diverse range of stones including but not limited to, American diamond, cubic zirconia, pearl, mother of pearl, and semi-precious stones, in 18k and 22k purity of gold, to their business-to-business (B2B) clients.
The company sells its products to a diverse range of clients including corporate clients, wholesale jewellers, and retailers across the country, particularly in 24 states and 4 union territories.
Shringar House of Mangalsutra Ltd Strengths
Established client base and long-standing relationship with clients
With over 15 years of operational experience, Shringar has established long-term relationships with its key clients. It sells and supplies its products to a diverse range of clients including corporate clients, wholesale jewellers, and retailers across the country.
In addition to serving domestic clients, the company has expanded its reach to international clients across countries like the United Kingdom, New Zealand, UAE, USA and the Republic of Fiji during the past three Fiscal years and six months period ended on September 30, 2024.
Design innovation and diversified product portfolio
The company’s product portfolio is designed to offer a variety of options, including, but not limited to, ring mangalsutras, bracelet mangalsutras, god edition mangalsutras, and divine mangalsutras. The company also offers an extensive portfolio of mangalsutras, featuring over 15 collections and more than 10,000 active SKUs, which are customised based on the quality and weight of the gold to meet the specific requirements of its clients.
Integrated manufacturing facility
Shringar is engaged in designing, manufacturing, and marketing a varied range of mangalsutra in 18k and 22k purity of gold to its B2B clients. Its manufacturing facility spans 8,300 sq ft area, equipped to produce a variety of mangalsutras with precision and efficiency.
As of September 30, 2024, it has an installed manufacturing capacity of 2,500 kg per annum, allowing it to produce a wide range of mangalsutras under one roof.
Risks of Shringar House of Mangalsutra Ltd
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Dependence on key clients for revenue: The company derives a significant portion of its revenue from operations from the sale of its mangalsutras to its corporate clients, retailers and wholesalers and it doesn’t have long term contracts with any of these clients. Loss of any of these clients, or the cancellation of their purchase orders, could adversely affect its business, cash flows, financial condition, and overall results of operations.
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Dependence on a single manufacturing facility: The company’s business operations are supported by a single manufacturing facility, located in Mumbai, Maharashtra. A slowdown or shutdown in its manufacturing operations or the under-utilisation of its manufacturing facilities or any adverse development affecting such a region could have an adverse effect on its business, results of operations, financial condition and cash flows.
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Dependence on mangalsutra sales: The company’s revenue from operations is completely dependent on sale and supply of mangalsutra. Any reduction in the sale of mangalsutras, or its inability to manufacture and sell mangalsutras, may have an adverse effect on its business, results of operations, cash flows and financial condition.
All Financial Information about Shringar House of Mangalsutra Ltd
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Company Name | Revenue from Operations (in ₹ crores) | EPS in ₹ | Return on Net Worth (in %) | NAV per Share (in ₹) |
|---|---|---|---|---|
Shringar House of Mangalsutra Ltd | 1101.523 | 4.39 | 25.65 | 19.29 |
Utssav CZ Gold Ltd | 340.196 | 7.65 | 44.62 | 20.96 |
RBZ Jewellers Ltd | 327.429 | 5.39 | 14.38 | 51.87 |
Sky Gold Ltd | 1745.484 | 35.18 | 23.66 | 212.15 |
Anchor Investor Bidding Date TBA
IPO Registrar and Book Running Lead Managers
- Registrar: MUFG Intime India Pvt Ltd
- Book Running Lead Manager: Choice Capital Advisors Pvt Ltd
Business Model
Shringar House of Mangalsutra Ltd is engaged in designing, manufacturing, and marketing, a varied range of mangalsutras studded with diverse range of stones including but not limited to, American diamond, cubic zirconia, pearl, mother of pearl, and semi-precious stones, in 18k and 22k purity of gold.
The company offers an extensive portfolio of mangalsutras, featuring over 15 collections and more than 10,000 active SKUs, designed to suit special occasions such as weddings, festivals, and anniversaries, as well as daily-wear options including antique, bridal, traditional, contemporary, and Indo-western styles.
Company Growth Trajectory
Shringar House of Mangalsutra Ltd has grown its operations and has demonstrated an increase in revenues and profitability. In Fiscal 2024, it achieved revenue from operations amounting to ₹1101.523 crores, compared to ₹950.217 crores in Fiscal 2023 and ₹810.187 crores in Fiscal 2022. Its EBITDA margin increased from 3.71% in FY 22 to 4.61% in FY 24.
Shringar House of Mangalsutra Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 1102.708 | 951.294 | 810.798 |
Profit Before Tax (in ₹ crores) | 42.159 | 31.435 | 27.321 |
Profit After Tax (in ₹ crores) | 31.105 | 23.358 | 20.265 |
EPS in ₹ | 4.39 | 3.29 | 2.86 |
Shringar House of Mangalsutra Ltd Balance Sheet
| Parameters | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 42.159 | 31.435 | 27.231 |
Cash Flows from Operating Activities (in ₹ crores) | (15.260) | 12.954 | (29.529) |
Cash Flows from Investing Activities (in ₹ crores) | (0.548) | (2.772) | (36.460) |
Cash Flows from Financing Activities (in ₹ crores) | 12.081 | (9.082) | 68.827 |
Cash and Cash Equivalents at the End of the Year (in ₹ crores) | 2.092 | 5.820 | 4.720 |
How to Check Allotment Status of Shringar House of Mangalsutra Ltd?
1. Visit the Registrar’s Website
Visit the official website of MUFG Intime India Private Ltd and choose ‘Public Issues’ from ‘Investor Services’ dropdown. Choose the company name from the ‘Select Company’ dropdown. Enter either your PAN, application number, DP client ID, etc and click on ‘Submit’ to check status.
2. Check on Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:
- Select 'Equity' from the dropdown menu
- Choose 'Shringar House of Mangalsutra Ltd' in the next dropdown
- Enter your application number
- Enter your PAN
- Click 'Search’ to know allotment status
3. Verify on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of Shringar House of Mangalsutra Ltd IPO. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:
- Application number
- PAN
Then click 'Submit' to know the allotment status.
How to Apply for Shringar House of Mangalsutra Ltd IPO?
- Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Shringar House of Mangalsutra Ltd IPO FAQs
What is the Shringar House of Mangalsutra Ltd IPO?
The IPO of Shringar House of Mangalsutra comprises only a fresh issue of up to 24,300,000 equity shares of face value of ₹ 10 each.
When will the IPO of Shringar House of Mangalsutra Ltd go live?
The exact dates of the IPO are yet to be announced.
Who is the chairman and MD of Shringar House of Mangalsutra Ltd?
Chetan N Thadeshwar is the chairman and MD of Shringar House of Mangalsutra Ltd.
From where can I read more about the IPO of Shringar House of Mangalsutra Ltd?
You can read more about the IPO of Shringar House of Mangalsutra Ltd from the company draft red herring prospectus here.
