Shringar House Of Mangalsutra IPO GMP Gains After Getting Fully Subscribed; Check Key Details

Shringar House of Mangalsutra Ltd., which launched its initial public offering (IPO) on Wednesday to raise over Rs 400 crore from the primary market, was fully subscribed on Day 1. The public issue was booked 2.01 times, led by demand from retail and non-institutional investors.

The grey market premium (GMP) for Shringar House of Mangalsutra, which manufactures and designs mangalsutras for jewellery retailers, has been trending for the last couple of days.

As bidding for the public issue continues on Thursday, here's all you need to know about the IPO of Shringar House of Mangalsutra.

According to InvestorGain, the GMP for the Shringar House of Mangalsutra IPO stood was Rs 29.5 apiece as of 9:30 a.m. on September 11. The latest GMP indicates a listing price of Rs 194.5 per share at a premium of 17.88%, compared to the upper limit of the IPO price band. 

This means the unlisted shares of Shringar House of Mangalsutra were trading at Rs 194.5, indicating a potential gain of upto 18% when the stock lists on BSE and NSE next week.

Note: GMP does not represent official data and is based on speculation.

Shringar House of Mangalsutra IPO is a book-building issue worth Rs 400.95 crore. It comprises entirely a fresh issue of 2.43 crore shares.

The price band for the IPO has been fixed between Rs 155 and Rs 165 per share.

To participate in the IPO, retail investors need to bid for at least a single lot size of 90 shares, amounting to a minimum investment of Rs 14,850. Small Non-Institutional Investors need to bid for 14 lots, aggregating to Rs 2,07,900. Big Non-Institutional Investors can participate in the IPO by bidding for a minimum of 68 lots. It will lead to an investment of Rs 10,09,800.

Of the 1,70,16,000 shares on offer, 48,56,000 are reserved for Qualified Institutional Buyers, 36,42,000 are reserved for Non Institutional Investors, 84,98,000 for Retail Investors and 20,000 for the employee reserved category.

Choice Capital Advisors Ltd. is the book-running lead manager and MUFG Intime India Ltd. is the registrar of the issue.

The share allotment status for Shringar House of Mangalsutra IPO is scheduled to be finalised on September 15. The company will transfer shares to the demat accounts of successful bidders on September 16 and refunds for non-allottees will be done on the same day. 

Shares of Shringar House of Mangalsutra Ltd. are tentatively scheduled to be listed on the BSE and NSE on September 17.

The company will use proceeds from the IPO to fund working capital requirements and for general corporate purposes.

The company designs and sells mangalsutras. It uses materials such as American diamonds, cubic zirconia and pearls in its mangalsutras. The company primarily caters to the needs of jewellery retailers.

The company reported a 96.43% year-on-year (YoY) growth in profit after tax (PAT) at Rs 61.11 crore in FY25 from Rs 31.11 crore in FY24. Its revenue from operations rose 29.8% YoY to Rs 1,429.82 crore in FY25 from Rs 1,101.52 crore in the preceding financial year.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.