Shringar House of Mangalsutra Ltd (SHOML) launched its IPO worth ₹401 crore on September 10, 2025. The company specializes in the design, manufacturing, and marketing of mangalsutras. 35% of the IPO shares are reserved for retail investors. SHOML supplies to major branded jewelry clients and aims to raise funds for business expansion.
IPO: Shringar House of Mangalsutra Ltd (SHOML) offered an IPO worth ₹401 crore on September 10, 2025. The company designs, manufactures, and markets mangalsutras and supplies to branded jewelry companies such as Tanishq, Reliance Retail, and Malabar Gold. 35% of the shares in the IPO are reserved for retail investors. The funds raised from this issue will be utilized by SHOML for its business expansion and entry into new cities.
IPO Details
SHOML's IPO is valued at a total of ₹401 crore. The company has set a price band of ₹155-165 per share. One lot comprises 90 shares. 35 percent of the shares in this issue are reserved for retail investors. After listing, the company's market capitalization is expected to reach approximately ₹1,591 crore. The issue will remain open until September 12.
Company Foundation
SHOML was established in the financial year 2008-09. The company has gained considerable experience in making mangalsutras. It boasts a team of 22 designers and 166 artisans. This team creates new designs according to customer preferences and fashion trends. The company focuses on developing a diverse range of mangalsutras for every occasion, including weddings, festivals, and anniversaries.
Key Clients and Market Position
SHOML's client list includes several major branded jewelry companies, such as Tanishq (Tata Group), Reliance Retail, Indriya (Aditya Birla Group), Malabar Gold, and Joyalukkas. The share of corporate clients was 30.2% in FY23, which increased to 34% in FY24.
The company intends to expand its business by entering 42 cities across the country through third-party intermediaries and facilitators. The trend of product outsourcing for branded jewelry companies is growing, which is increasing business opportunities for companies like SHOML.
SHOML possesses specialized expertise in mangalsutra manufacturing and a b B2B network. The demand for outsourcing from branded jewelry companies in the country is continuously rising. The funds raised from this issue will be used by the company for business expansion and entry into new cities.
Impact of Major Risks on SHOML
There are certain risks associated with the company. The primary risk is that SHOML exclusively manufactures mangalsutras. If, for any reason, the demand for mangalsutras declines, it will directly impact the company's business.
The second risk is that the company operates only one plant in Mumbai. If any technical or other issue arises at this plant, manufacturing could be affected.
The third and significant risk is that the company's cash flow has been negative in FY24 and FY25. The main reason for this is the increased need for working capital for business expansion. The company's focus on expansion has also led to a rise in capital demand.
