The Shanti Gold International Limited IPO has attracted strong investor interest, particularly among retail and high-net-worth individual (HNI) investors. With its attractive pricing, solid financial performance and promising business model, this IPO has created a buzz in the grey market and among analysts. This article provides complete details about Shanti Gold International IPO, including its price range, grey market premium (GMP), subscription trends, financials and whether it is worth applying or not.
Shanti Gold International IPO Overview
Shanti Gold International Limited is entering the primary market with an initial public offering (IPO) of equity shares worth Rs 360.11 crore. This is a fresh issue only and does not include an offer for sale (OFS). The company plans to issue around 1.81 crore equity shares through this public issue.
The price band of the IPO has been fixed between Rs 189 and Rs 199 per share. Investors can bid for a minimum lot size of 75 shares, which at the upper band will be priced at Rs 14,925. The issue will open for subscription on July 25, 2025, and close on July 29, 2025. Subject to allotment and regulatory approvals, the shares are expected to be listed on both NSE and BSE on August 1, 2025.
The lead manager for the issue is Beeline Capital Advisors Private Limited and the registrar is Bigshare Services Private Limited.
Shanti Gold International IPO Details
- Company Name: Shanti Gold International Limited
- IPO Type: Book Built Issue
- Issue Size: ₹360.11 crore (100% fresh issue)
- Price Band: ₹189 to ₹199 per share
- Lot Size: 75 shares (minimum investment of ₹14,925)
- IPO Dates:
- Opens: July 25, 2025
- Closes: July 29, 2025
- Listing: Expected on August 1, 2025 on NSE and BSE
- Registrar: Bigshare Services Pvt Ltd
- Lead Manager: Beeline Capital Advisors Pvt Ltd
Use of IPO Proceeds
The Company plans to use the net proceeds from the IPO for several strategic initiatives:
- Working Capital Requirements: Approximately Rs 200 crore will be allocated to meet the working capital needs of the business.
- Setting up a Manufacturing Unit: Around Rs 46.3 crore will be used to establish a new state-of-the-art manufacturing facility in Jaipur.
- Repayment of Borrowings: Rs 17 crore is allocated for repaying existing loans.
- General Corporate Purposes: The remaining funds will be used for day-to-day business needs and other corporate activities.
These investments are expected to strengthen the company’s infrastructure, improve operational efficiency and support its growth plans.
About Shanti Gold International Limited
Established in 2003, Shanti Gold International Limited is headquartered in Mumbai and is a leading player in the Indian gold jewellery manufacturing sector. The company specializes in the design, manufacturing and sale of 22 carat gold jewellery, with a special focus on cubic zirconia (CZ) casting jewellery. It primarily serves business-to-business (B2B) customers, including leading jewellery retailers such as Joyalukkas and Lalitha Jewelleries.
The company operates in over 15 states across India and is also present in select international markets. Shanti Gold has established a strong in-house design and manufacturing system that leverages computer-aided design (CAD) and advanced manufacturing techniques to offer a wide range of jewellery with unique designs.
Financial Performance
The financial performance of Shanti Gold International has shown significant improvement over the years. Here are some key highlights:
- In FY23, the company reported a revenue of Rs 679 crore and a net profit of Rs 19.8 crore.
- In FY24, revenue jumped to over Rs 1,100 crore, while net profit surged to Rs 55.8 crore.
- The CAGR (Compound Annual Growth Rate) of revenue and net profit has been impressive at over 27% and 67% respectively.
- The company reported an EBITDA margin of around 8.8% and a strong Return on Equity (RoE) of approximately 44.85%.
- On the valuation front, the IPO is priced at a P/E ratio of around 19x, which is considered reasonable when compared to industry peers trading at 23x or higher. However, the Price-to-Book (P/B) ratio stands slightly higher at around 7x.
This consistent financial performance highlights the company’s efficient cost management, growing customer base and expanding profit margins.
Grey Market Premium (GMP) and Investor Sentiment
As of the 2nd day of the IPO, the Grey Market Premium (GMP) for Shanti Gold International ltd is hovering between Rs 38 to Rs 40. This suggests that the stock may list at around Rs 237 to Rs 239, offering a potential listing gain of around 19% over the IPO price of Rs 199.
The strong GMP indicates that the IPO is expected to be well received in the secondary market as well, especially if broader market conditions remain stable.
Shanti Gold International Subscription Status
The IPO has seen strong interest from retail and non-institutional investors:
- Retail Investors: Oversubscribed by 4 to 6.6 times.
- Non-Institutional Investors (NIIs): Oversubscribed by 2.5 to 7.5 times.
- Qualified Institutional Buyers (QIBs): Subscribed only around 0.02 to 0.05 times as of Day 2.
- Overall Subscription: Ranged between 2.25x to 3.76x, depending on the data source.
The relatively weak QIB participation may indicate some caution from institutional investors, although retail enthusiasm has driven strong overall numbers.
Key Risks and Considerations
While the IPO appears attractive, investors should also consider the associated risks:
- Gold Price Volatility: As a gold jewellery manufacturer, the business is sensitive to fluctuations in gold prices, which can impact margins and demand.
- Client Concentration: A large portion of the company’s revenue comes from a few key clients. Losing any of these could affect business performance.
- Capital-Intensive Business: Jewellery manufacturing requires significant working capital and investment in inventory, which could strain liquidity.
- Limited Institutional Participation: The low QIB subscription may signal cautious sentiment from long-term investors.
Should You Apply in Shanti Gold International IPO?
Most brokerages have given a “Subscribe” recommendation, especially for long-term investors. The company’s solid fundamentals, strong revenue and profit growth, positive GMP, and efficient management make it an attractive option.
However, investors should also consider the risks, particularly the dependence on gold prices and concentration of revenue from a few clients. If you’re looking for potential listing gains or a long-term wealth creation opportunity in the gold sector, this IPO could be worth considering.
Conclusion
The Shanti Gold International IPO offers a promising opportunity for investors looking to tap into the growing Indian jewellery market. With strong financial performance, a good track record, and positive sentiment in the grey market, the IPO is expected to perform well upon listing. Still, as with any investment, due diligence and consideration of personal risk tolerance are essential before making a decision.
If you are a retail investor seeking medium to long-term exposure to a high-growth, well-managed company in the jewellery sector, this IPO could be a valuable addition to your portfolio.
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