Shringar House of Mangalsutra IPO opens today: GMP signals 18% listing gain; should you bid?

About this update from Maybank Securities (thailand) Public Company Limited

The initial share sale of Shringar House of Mangalsutra, which makes mangalsutras for several leading corporate companies in jewellery industry, will be hitting Dalal Street on Wednesday, September 10. Urban Company's ₹1,900 crore issue is also opening on the same day. Ahead of the issue opening, Shringar House of Mangalsutra has garnered ₹120.19 crore from anchor investors. The marquee institutions that participated in the anchor include Kotak Mahindra Life Insurance, Maybank Securities, Societe Generale, Plutus Investment Trust, North Star Opportunities Fund, Founders Collective, Mint Focused Growth Fund, Aidos India Fund, Rajasthan Global Securities, Sunrise Investment Trust, Astrone Capital, Jalan Chemical Industries, Shine Star Build and NAV Capital.Brokerages viewSBI Securities: Subscribe SBI Securities has recommended investors to subscribe to the issue at the cut-off price. It said that Shringar House of Mangalsutra has consistently grown its revenues since its commencement of business operations. It is planning to establish a pan-India supply chain model through third-party intermediaries/facilitators to tap the unpenetrated jewellery markets. For this purpose, the company has identified 42 cities and has entered into arrangements with 11 third-party facilitators. The company's business operations are working-capital intensive as it purchases gold from banks and bullion houses which require immediate payment while the clients are provided with an average credit period of 15-20 days. As the company aims to grow its volumes and scale of operations, the working capital needs are expected to increase correspondingly. The company is likely to benefit from the rising shift from unorganised to organised sector as well as the huge addressable market size of mangalsutra.Anand Rathi: Subscribe for long term The brokerage has assigned a 'Subscribe for Long term' rating to the IPO, backed by Shringar’s robust growth, expanding client base, strong financials, and strategic expansion, enabling long-term value creation. On the valuation front, based on annualized FY25 earnings, the company is seeking a P/E (price-to-earnings) of 26 times, and a post-issue market capitalisation of approximately Rs 1,591 crore, making the issue appears to be fairly priced, the brokerage said.Shringar House of Mangalsutra IPO: Price band The company has fixed a price band of ₹155 ...

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