Shringar House of Mangalsutra IPO Opens Tomorrow: Check Key Details, Financials and Risks from RHP

Mumbai, September 9, 2025 – Shringar House of Mangalsutra Limited will open its ₹400 crore IPO on September 10, 2025, and close on September 12, 2025. The listing is scheduled on September 17, 2025. The price band is ₹155–₹165, and the lot size is 90 shares, which means the minimum investment will be ₹14,850.

IPO Schedule

Shringar House of Mangalsutra IPO  will open for public subscription from September 10, 2025, and will be open until September 12, 2025. Investors applying through UPI must ensure their payment mandates are settled by 5:00 PM on September 12, 2025, as this is the last cut-off time.

The allotment basis will be determined on September 15, 2025, and subsequently, refunds will be issued on September 16, 2025, for applicants who do not receive shares. On the same day, the allotted shares will be credited to the demat accounts of successful bidders. The company’s shares are scheduled to list on the stock market on September 17, 2025.

Financial Performance

Revenue from operations of the company increased consistently from ₹9,502.17 million in FY23 to ₹11,015.23 million in FY24 and then to ₹14,298.15 million in FY25. EBITDA doubled in just two years, improving from ₹388.86 million in FY23 to ₹926.12 million in FY25. Margins also increased, with the EBITDA margin rising from 4.09% to 6.48%.

Net profit increased sharply from ₹233.58 million in FY23 to ₹611.14 million in FY25, and net profit margins rose from 2.46% to 4.27%, demonstrating improving earnings efficiency. Return on Net Worth (RoNW) also improved from 24.84% in FY23 to 36.20% in FY25, indicating better shareholder value creation. At the same time, the debt-equity ratio came down from 0.88 to 0.61 during the same period, reflecting an improved balance sheet and reduced borrowing dependence.

The firm registered a close to 30% YoY growth in revenue in FY25, with the net profit nearly doubling. The margins and return ratios have also improved, aided by scale and better operating efficiency.

Risks from the RHP

Multiple risks were underlined in the Red Herring Prospectus (RHP). The most critical include heavy revenue concentration, volatility of external factors such as gold prices, and the company being working capital heavy. The most critical risk factors are:

1. Revenue Concentration: More than 85% of revenue is generated through sales to a small number of retailers, wholesalers, and corporate customers; the lack of long-term arrangements increases business risk.
2. Gold Price Volatility: As a gold jewellery manufacturer, profitability is exposed to fluctuations in gold prices.
3. Extremely Competitive Industry: Operates in a highly competitive jewellery market characterized by strong price-based competition.
4. Working Capital Heavy: High levels of inventory and receivables cycle strain liquidity.
5. Geographic Dependence: A significant portion of business comes from specific regions in India, which exposes it to local demand shocks.

Company Overview and Business Model

Shringar House of Mangalsutra is involved in the design and production of Mangalsutras made in 18k and 22k gold. Shringar House of Mangalsutra deals in B2B customers, retailers, wholesalers, and corporate buyers, with a small international market. Shringar House of Mangalsutra has demonstrated continuous and strong growth in terms of revenue, profitability, and return ratios for the last three financial years.

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