Shringar House of Mangalsutra Eyes Continued Growth Following Successful IPO
Shringar House of Mangalsutra made a strong stock market debut with shares listing at a 14.2% premium. The company's profit after tax grew by 161.60% to Rs 61.11 crore in FY25, while revenue increased by 50.50% to Rs 1,429.82 crore. The company plans to use IPO proceeds for working capital and expansion. Despite rising gold prices, mangalsutra demand remains stable due to cultural significance. The Indian mangalsutra market, currently valued at Rs 17,000-18,000 crore, is expected to exceed Rs 30,000 crore by 2032.
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Shringar House of Mangalsutra, a prominent player in the Indian jewelry market, is poised to maintain its growth trajectory following a robust stock market debut. The company's initial public offering (IPO) and subsequent financial performance have caught the attention of investors and industry observers alike.
Strong Market Debut
The company's shares made a powerful entrance on the stock exchanges, listing at a premium of 14.2% over the issue price. On the National Stock Exchange (NSE), the stock opened at Rs 188.50, while on the Bombay Stock Exchange (BSE), it debuted at Rs 187.70. This impressive start came on the heels of a Rs 400.95-crore IPO, which comprised a fresh issue of 2.43 crore shares with a price band of Rs 155-165 per share.
Impressive Financial Performance
Shringar House of Mangalsutra has demonstrated remarkable financial growth:
| Metric | FY23 | FY25 | Growth |
|---|---|---|---|
| Profit After Tax (Rs Crore) | 23.36 | 61.11 | 161.60% |
| Revenue from Operations (Rs Crore) | 950.22 | 1,429.82 | 50.50% |
The company's profit after tax surged by an impressive 161.60%, reaching Rs 61.11 crore in FY25 from Rs 23.36 crore in FY23. Simultaneously, revenue from operations saw a substantial increase of 50.50%, climbing to Rs 1,429.82 crore from Rs 950.22 crore.
Future Growth Strategy
Executive Director Viraj C Thadeshwar expressed confidence in the company's future, stating that Shringar House of Mangalsutra aims to maintain similar growth ranges post-IPO. The proceeds from the public offering are earmarked primarily for working capital needs and business expansion, indicating a focus on growth and market penetration.
Market Outlook and Demand
Despite rising gold prices, Chairman Chetan N Thadeshwar noted that the demand for mangalsutras remains stable. This resilience is attributed to the cultural significance of mangalsutras as a regional product in India. The mangalsutra market in India is currently valued at Rs 17,000-18,000 crore and is projected to expand significantly, potentially exceeding Rs 30,000 crore by 2032.
Conclusion
With its successful IPO, strong financial performance, and a growing market for its core product, Shringar House of Mangalsutra appears well-positioned to capitalize on the expanding Indian jewelry market. As the company moves forward with its growth plans, investors and industry watchers will be keen to see if it can maintain its impressive trajectory in the competitive and culturally significant mangalsutra segment.
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