Shringar House of Mangalsutra shares slide over 2% after listing at premium. Should you buy, sell or hold?

Shares of Shringar House of Mangalsutra fell over 2.5% to Rs 183 on the BSE after a strong listing on Wednesday. The stock debuted at Rs 187.70, a 13.8% premium over its IPO price of Rs 165, before easing amid mild profit booking.

On the NSE, the stock got listed at a premium of 14.2% at Rs 188.50.

The Rs 400 crore IPO drew robust investor demand, with subscriptions exceeding 60 times. The issue was priced in the Rs 155–165 band.

What are analysts saying now?

“Shringar House of Mangalsutra’s IPO is well-positioned for a promising listing, making it an attractive opportunity for investors seeking exposure to the jewelry segment,” said Shivani Nyati, Head of Wealth at Swastika Investmart.

She advised investors to book partial profits near current levels and hold the balance with a stop-loss set at Rs 115 to manage downside risk.

Further, brokerage firm Master Capital Services noted that the long-term market for Mangalsutra is expected to remain healthy. Shrinagar House of Mangalsutra Limited is well-positioned to capture this expected growth by establishing a supply chain network to reach untapped geographical regions, it said.

"The demand for Mangalsutra is complementary to Jewellery demand, hence the demand trend depicts a similar trend," read the note by Master Capital Services.

About Shringar House of Mangalsutra

The company, a leading designer and manufacturer of Mangalsutras, caters to a wide B2B client base across India and abroad. Its products, crafted in 18k and 22k gold and embellished with American diamonds, cubic zirconia, pearls, and semi-precious stones, have helped it capture about 6% of India’s organized Mangalsutra market.

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With over 15 collections and more than 10,000 SKUs, Shringar House balances tradition and contemporary styles, appealing to both older and younger demographics.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)