Shringar House of Mangalsutra
IPO Size: Rs. 401 cr, Entirely Fresh Issue
- For working capital Rs. 280 cr
Price band: Rs. 155-165 per share
M cap: Rs. 1,591 cr, implying 25% dilution
IPO Date: Wed 10th Sep to Fri 12th Sep 2025, Listing Wed 17th Sep 2025
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
B2B Mangalsutra Manufacturer
Shringar House of Mangalsutra is a Mumbai-based jewellery manufacturer and wholesaler to Malabar Gold, Titan, P N Gadgil, Reliance Retail, GRT, Kalamandir, Waman Hari Pethe etc. Half of its Rs. 1,400 cr annual topline is generated from Maharashtra alone. Due to product focus on wedding related ‘mangalsutra’, this B2B player has both product and geographic concentration risk and is not as diversified like other B2B jewelers.
Volume De-Grew in FY25
Company’s FY25 revenue grew 30% YoY to Rs. 1,430 cr, which was entirely price-led i.e. realization rose 32% YoY due to rising gold prices, while volume growth was negative 1%. Volume de-growth for any business is quite concerning!
Despite this, company’s EBITDA rose 83% YoY to Rs. 93 cr, translating into 6.5% EBITDA margin, up from 4.6% in FY24. Margin jump right before the IPO has become quite a norm these days, especially for micro and nano-cap company IPOs. On Rs. 61 cr PAT, Shringar’s net margin stood at 4.3%, leading to an EPS of Rs. 8.6, on equity of Rs.72 cr (Face value Rs. 10 each).
Lower Inventory Turn
Inventory turnover ratio contracted to 6.3x in FY25, from 7.6x in FY24. Besides, this ratio fares poorly than peer, being lower than B2B jewellers such as recently listed Shanti Gold (7.5x), Utssav CZ (7.5x) and Sky Gold (9x).
Pricing in-line with Peers
On m cap of Rs. 1,591 cr, IPO is priced at a current year PE multiple of 17x, based on FY26E expected EPS of around Rs. 9.5. This is in-line with B2B peers, such as:
- Newly listed Shanti Gold, with Rs. 1,100 cr topline, 15% YoY volume growth, 5% net margin and 7.5x inventory turn is ruling at FY26E PE of 19.5x.
- Smaller peer Utssav CZ, with 4% net margin on Rs. 650 cr topline, 7.5x inventory turn, is trading at 17x PE.
- Smaller peer RBZ Jewellers is trading at a PE of 14x, on FY25 revenue of Rs. 530 cr, 7% net margin and 2x inventory turn.
Rising gold prices act as tailwind for company’s topline, but Shringar’s low inventory turn and volume de-growth in FY25 makes the IPO priced in-line with peers.
8th Sep 2025 at 08:05 pm