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Shringar House of Mangalsutra Secures Rs 120 Crore from Anchor Investors Before IPO Launch
Jewellery firm Shringar House of Mangalsutra has raised Rs 120.18 crore from anchor investors ahead of its IPO. The company will offer shares priced between Rs 155 and Rs 165 during the subscription period from September 10 to 12.
Shringar House of Mangalsutra Ltd, a jewellery company, has raised Rs 120.18 crore from anchor investors before its initial public offering (IPO). The firm allocated 72.84 lakh equity shares at Rs 165 each to these investors, as per a circular on the BSE website. The IPO is set for subscription from September 10 to 12, with a price range of Rs 155 to Rs 165 per share.
The IPO consists entirely of a fresh issue of 2.43 crore equity shares, valued at Rs 401 crore at the top end of the price band. There is no Offer For Sale (OFS) component in this offering. The funds raised will be used to support the company's working capital needs and for general corporate purposes.
Anchor Investors and Market Position
Among the anchor investors are Kotak Mahindra Life Insurance Company, Maybank Securities Pte Ltd - ODI, Societe Generale - ODI, AIDOS India Fund Limited, Nav Capital VCC, and Founders Collective Fund. These institutions have shown confidence in the company's prospects by participating in the anchor allocation.
Shringar House of Mangalsutra was established in 2009 and specialises in designing, manufacturing, and marketing a wide variety of Mangalsutras. These are embellished with stones like American diamonds, cubic zirconia, pearls, mother of pearl, and semi-precious stones set in 18k and 22k gold. The company caters mainly to Business-to-Business (B2B) clients and holds about 6% of India's organised Mangalsutra market as of 2023.
Financial Performance and Management
The company's revenue from operations rose to Rs 1,430 crore in fiscal year 2025 from Rs 1,101 crore in the previous year. Profit after tax also increased significantly to Rs 61 crore from Rs 31 crore during the same period. This growth reflects the company's strong market position and effective business strategies.
Choice Capital Advisors is acting as the sole book-running lead manager for this IPO. MUFG Intime India has been appointed as the registrar for the issue. These roles are crucial for ensuring a smooth process for both the company and potential investors.
Shringar House of Mangalsutra's upcoming IPO marks a significant step in its growth journey. By raising capital through this public offering, the company aims to strengthen its financial position and expand its operations further.
With inputs from PTI
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