Management

• Chetan N Thadeshwar (Chairman & Managing Director)
• Viraj C Thadeshwar (Executive Director & Chief Executive Officer)
• Balraj C Thadeshwar (Whole-time Director & Chief Operating Officer)
• Mamta C Thadeshwar (Independent Director)
• Radhamanalan (Independent Director)
• Nitesh Mahendra Kothari (Independent Director)
• Anilkumar Mohanraj Marlecha (Independent Director)
• Dr. Ruchika Agarwal (Independent Director)
• Ritesh Ashokkumar Doshi (Chief Financial Officer)

Use of Proceeds

The total issue size is Rs. 400.95 cr, which comprises a fresh issue of Rs 400.95 cr and no offer for sale (OFS) component. The company intends to utilize a portion of the net proceeds towards funding working capital requirements (Rs 280 cr), and the rest for general corporate purposes.

Competitive Strengths

Established client base and long-standing relationship with clients With more than fifteen years of operational experience, the company has built long-term relationships with key clients across India and overseas. Its products are supplied to corporate clients, wholesale jewellers, and retailers across twenty-four states and four union territories. In addition, the company has expanded internationally over the past three fiscal years, serving around 20 overseas clients in the United Kingdom, New Zealand, UAE, USA, and Fiji. Prominent clients include Malabar Gold, Titan Company, GRT Jewellers, Reliance Retail, Aditya Birla’s Novel Jewels, Joyalukkas, PN Gadgil Jewellers, Waman Hari Pethe, Damas Jewellery, Lalithaa Jewellery, Manoj Vaibhav Gems, and D. P. Abhushan Limited. Quality assurance measures ensure products consistently meet client expectations.

Design innovation and diversified product portfolio The company has positioned itself strongly in the Mangalsutra segment, a key part of Indian weddings, catering to evolving customer preferences across age groups. Its product range includes antique, bridal, traditional, contemporary, and Indo-western Mangalsutras. Customization is a growing trend, and the company offers options such as ring Mangalsutras, bracelet Mangalsutras, God edition Mangalsutras, and divine Mangalsutras. The portfolio includes over 15 collections and more than 10,000 active SKUs, customized by gold quality and weight. As of June 2025, an in-house design team of 22 professionals develops new products aligned with lifestyle trends, supported by 166 in-house Karigars and third-party artisans. Dedicated social media handles are used to highlight design innovation and attract retail and wholesale clients.

Integrated Manufacturing Facility The company designs, manufactures, and markets Mangalsutras in 18k and 22k gold through its integrated facility spanning 8,300 sq ft. As of March 2025, the installed manufacturing capacity stood at 2,500 kg per annum, allowing end-to-end production under one roof. Advanced technology such as CNC para machines, laser solder machines, and 3D printers are deployed to achieve precision and handle complex designs. Custom-designed dyes are also used to enhance durability. The facility blends modern machinery with artisanal expertise of 166 in-house Karigars, ensuring every piece reflects both fine detailing and high quality. Integrated operations help maintain consistency, exclusivity, and competitive pricing across product ranges.

Quality assurance and quality control of Mangalsutras Each Mangalsutra is hallmarked with a unique HUID number, supported by rigorous quality checks at every stage of production. Testing processes include XRF machines and steel pin detectors to verify authenticity and durability. More than 100 Karigars contribute to manufacturing, either fully or partially, depending on their area of expertise. As of now, 77 Karigars are under formal contracts. The company has implemented a three-stage quality control system, where every product is checked for structural integrity, polishing consistency, and finishing. Purity tests are conducted with advanced gold testing machines, and final pieces are hallmarked by accredited agencies. This multi-layered process reinforces trust with clients and ensures industry-standard quality.

Continuously improving financial performance The company has shown consistent growth over the last three fiscal years, with revenue rising from Rs 9,502.17 million in Fiscal 2023 to Rs 11,015.23 million in Fiscal 2024 and further to Rs 14,298.15 million in Fiscal 2025. This represents year-on-year growth of 15.92% in 2024 and 29.80% in 2025. Net profit after tax increased from Rs 233.58 million in 2023 to Rs 311.05 million in 2024 and Rs 611.14 million in 2025. PAT margins improved significantly from 2.46% in 2023 to 4.27% in 2025. The rise in profitability and operational scale reflects the company’s ability to strengthen its financial base while capturing a larger market share.

Experienced Promoters and a professional management team The promoters belong to a family of jewellers with decades of experience, beginning with the foundation laid by goldsmith Natwarlal K. Thadeshwar in Mumbai. The business was formally organized in 2009 with the incorporation of Shringar House of Mangalsutra Private Limited by Chetan Thadeshwar and Mamta Thadeshwar. Later, Viraj and Balraj Thadeshwar also joined the business. Collectively, the promoters bring over 60 years of experience in jewellery, providing strategic direction, innovation, and business expansion. Their leadership has enabled wide geographical presence, supported by professional management and qualified teams in key business functions. This mix of legacy, expertise, and modern management has allowed the company to scale operations domestically and internationally.

Peer Comparison

Key Risks & Concerns

Contract Termination:

The company derive a significant portion of its revenue from corporate clients and do not have long term contracts with these clients. Loss of any of these clients due to loss of contracts or inability to negotiate favourable terms, failure to meet their quality specification, technological changes may adversely affect revenues and profitability.

Concentrated Manufacturing Capability:

Shringar’s manufacturing operations are dependent on a single facility which is subject to various operational risks. Any prolonged shutdown may adversely impact business operations.

Geographical Concentration:

The company derived ~50% of its revenue from Maharashtra in FY25. Due to the geographic concentration in Maharashtra, the operations are susceptible to local and regional factors such as economic and weather conditions, natural disasters, demographic changes, and other unforeseen events and circumstances.

Outlook and Valuation

Shringar House of Mangalsutra Ltd. (SHOM) has consistently scaled up revenues since inception and is now focusing on building a pan-India supply chain through third-party intermediaries to penetrate under-served jewellery markets. The company has identified 42 cities and entered arrangements with 11 facilitators to strengthen distribution. As the business model is working-capital intensive, reliance on immediate gold purchases from banks and bullion houses, coupled with client credit periods of 15–20 days, creates rising capital needs. IPO proceeds are being directed towards funding these requirements, which will support volume growth and expansion. Additionally, the company stands to benefit from the shift from unorganised to organised jewellery players and the growing mangalsutra market.

The Indian mangalsutra market, valued at Rs 178 billion in FY23 and expected to grow to Rs 303 billion by FY32 at a CAGR of 5.8%, offers strong demand prospects. Shringar’s long-standing client base across 24 states and 4 union territories includes marquee names such as Malabar Gold, Titan, Reliance, and Joyalukkas. Expansion into 42 new cities and plans for 400–440 retail outlets are underway, supported by a diversified portfolio of 15+ collections and 10,000+ SKUs. A design team of 22 professionals, 166 in-house karigars, and advanced automation ensure continuous innovation and operational efficiency. Integrated manufacturing with 2,500 kg annual capacity, cost optimization, and rigorous quality checks strengthen execution. Financially, revenue grew from Rs 9,502 million in FY23 to Rs 14,298 million in FY25, with EBITDA rising from Rs 389 million to Rs 926 million and net profit more than doubling to Rs 611 million. Strong margins, improved return ratios, and lower debt-equity highlight robust financial discipline.

The company’s presence spans across India, with Maharashtra contributing the largest share of sales. Growth is supported by the launch of new SKUs and product innovations, including the planned introduction of 24K gold mangalsutras in 2026. As one of India’s leading specialised designers and manufacturers of mangalsutras, contributing around 6% of the organised market in CY23, the company offers a wide range of products in 18k and 22k gold, often embellished with American diamonds, cubic zirconia, pearls, and semi-precious stones. Its reach extends to domestic corporate clients, wholesalers, and retailers, while also serving international markets in the UK, New Zealand, UAE, USA, and Fiji. End-to-end operations at the integrated 8,300 sq. ft. facility in Mumbai support innovation, efficiency, and expansion, positioning the company strongly for long-term growth in both domestic and overseas markets. We like SHOM’s increasing client base, exceptional financial performance, strategic plans for both domestic and global expansion, and the potential for enhanced capacity utilization. At the upper price band, Shringar House of Mangalsutra Ltd.  is valued at 19.25x FY25E offering an attractive valuation. We recommend a SUBSCRIBE rating for the issue.