Finowings Analysis: The Shringar House of Mangalsutra IPO
As a trusted financial portal, Finowings provides investors with the in-depth analysis needed to make sound investment decisions. The IPO market is currently witnessing a fascinating shift, with a traditional jewellery company like Shringar House of Mangalsutra making a public debut alongside new-age tech companies.
The Shringar House of Mangalsutra IPO is a book build issue of ₹400.95 crores, entirely a fresh issue. This signals the company's intent to use the capital for its future growth. The bidding opened for subscription today, September 10, 2025, and will close on September 12, 2025.
A key indicator of market sentiment is the Grey Market Premium (GMP). The last reported GMP for Shringar House of Mangalsutra is ₹30. With the upper price band set at ₹165.00, this suggests a potential listing price of ₹195.00, an expected gain of 18.18%. This robust premium highlights strong investor interest in a niche, profitable business.
Financial Performance: A Glimmering Report ✨
The financials of Shringar House of Mangalsutra show a consistently strong performance, which we at Finowings view as a key strength.
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Revenue from Operations: Grew from ₹1,102.71 crores in FY24 to ₹1,430.12 crores in FY25, a growth of nearly 30%.
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Profit After Tax (PAT): The company nearly doubled its profit, from ₹31.11 crores in FY24 to ₹61.11 crores in FY25. This significant jump reflects improved operational efficiency and a scalable business model.
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Return on Net Worth (RoNW): At an impressive 36.20% in FY25, the company's RoNW is one of the highest among its peers, indicating superior capital efficiency and strong returns for shareholders.
Shringar House vs. Urban Company vs. Dev Accelerator: A Contrasting View
The IPO market is a diverse landscape, and the comparison of these three companies highlights the different opportunities available to investors.
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Urban Company: A tech-enabled marketplace in the home services sector. Its valuation is high (up to ₹14,800 crore), built on brand recognition, scale, and long-term growth potential. Its profitability, while a major milestone, has been aided by a one-time tax credit.
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Dev Accelerator: A high-growth player in the flexible workspace market. Its IPO valuation is aggressive, but it has a strong growth story and a shift to profitability. Its appeal lies in its potential for strong listing gains.
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Shringar House of Mangalsutra: A traditional, yet innovative, company in a specialized segment. Its financials are robust and demonstrate consistent profitability. Its valuation, while high, is at a discount to some listed peers. The company's appeal lies in its niche market leadership and strong fundamentals.
The Finowings Verdict:
The Shringar House of Mangalsutra IPO presents a compelling case for investors seeking a stable, fundamentally strong business with a clear growth trajectory. The healthy GMP, a profitable track record, and a dominant position in a niche market make it a standout offering. We believe it is well-positioned to reward investors.
