Shanti Gold International Limited, a well-known name in the gold jewellery manufacturing sector, is launching its Initial Public Offering (IPO) on July 25, 2025, with the aim of raising ₹360.11 Crores through a 100% Fresh Issue of 1.80 Crore equity shares. The company, renowned for its 22kt CZ casting gold jewellery, is offering shares at a price band of ₹189 to ₹199 per equity share, with a market capitalisation of ₹1,434.71 Crores at the upper end.

The IPO will remain open for subscription from July 25 to July 29, 2025, and the basis of allotment is likely to be finalised on Wednesday, July 30, 2025. The shares are expected to be listed on both BSE and NSE on Friday, August 01, 2025.

IPO Details at a Glance

The lot size for retail investors has been fixed at 75 shares, translating to a minimum application amount of ₹14,925. For High-Net-Worth Individuals (HNIs), the minimum investment is 14 lots (1,050 shares), amounting to ₹2,08,950. The book running lead manager for the issue is Choice Capital Advisors Private Limited, and Bigshare Services Private Limited is the registrar to the IPO.

About the Company

Shanti Gold International is among the leading manufacturers of intricately designed gold jewellery in India. The company caters to all price points, including wedding collections, festive ornaments, and daily-wear jewellery, making it a well-rounded brand in the highly competitive jewellery market. With a strong focus on design innovation and production efficiency, it commands significant customer trust.

The company's product range includes bangles, rings, necklaces, and jewellery sets, and it uses modern casting techniques to deliver quality products. Its business is driven by high production capacity, enabling it to maintain scale while controlling costs.

Promoters and Leadership

The company’s leadership includes Pankajkumar H. Jagawat and Manojkumar N. Jain, both of whom have over 20 years of experience in the gold jewellery sector, and Shashank Bhawarlal Jagawat, with 16 years of industry experience. Their expertise and established relationships with distributors and suppliers have facilitated the expansion of operations and supply chain integration.

Financial Performance

Shanti Gold International has shown robust financial performance in the last three years:

• Revenue from operations:

  • FY25: ₹11,124.67 Million

  • FY24: ₹7,150.38 Million

  • FY23: ₹6,822.75 Million

• EBITDA:

  • FY25: ₹977.14 Million

  • FY24: ₹534.54 Million

  • FY23: ₹455.70 Million

• Profit After Tax (PAT):

  • FY25: ₹558.42 Million

  • FY24: ₹268.68 Million

  • FY23: ₹198.19 Million

These numbers suggest consistent year-on-year growth and improving margins, reflecting strong operational efficiency and demand stability.

Valuation Metrics

The company’s pre-issue EPS stands at ₹10.34, and post-issue EPS is ₹7.75. The P/E ratio is 19.24x pre-issue and 25.69x post-issue, compared to the industry average P/E of 24x. The Return on Capital Employed (ROCE) for FY24 is 25.70%, and the Return on Equity (ROE) is 44.85%, indicating strong returns for stakeholders.

However, the post-issue valuations indicate that the IPO is fully priced, suggesting limited upside potential, unless future earnings growth significantly exceeds current projections.

Grey Market Premium (GMP)

As of July 22, 2025, the Grey Market Premium (GMP) for Shanti Gold International IPO is ₹16, which indicates a potential listing gain of 8.04%. While this suggests a modest debut, investors are cautioned that GMP is an unofficial indicator, and no price discovery is done in regulated markets. The actual listing could differ based on market sentiment and subscription demand.

Objectives of the Issue

The proceeds from the IPO will be used for:

1. ₹462.97 Million – Funding capital expenditure for setting up a new manufacturing facility in Jaipur

2. ₹2,000 Million – Working capital needs of the company

3. ₹170 Million – Repayment or prepayment of certain borrowings

4. General corporate purposes

This clearly indicates that the company is focusing on expansion and balance sheet strengthening, both of which can help drive future growth.

Allotment and How to Check Status

Investors can check the IPO allotment status from July 30, 2025 on the registrar's website by:

• Visiting the allotment status page

• Selecting Shanti Gold International Limited IPO

• Entering the application number, PAN, or DP Client ID

• Submitting the details

This will allow investors to quickly determine whether they have received shares in the IPO.

Final Recommendation

Based on the company’s consistent revenue and PAT growth, strong return ratios, and positive GMP, the IPO of Shanti Gold International appears suitable only for investors with moderate to high risk appetite.

However, the valuation is not cheap, and the listing premium is modest, so investors should temper expectations. Therefore, Risky Investors can Apply for listing gains, but conservative investors may wait for future opportunities.

Disclaimer: This content is for educational and informational purposes only and does not constitute financial advice or an investment recommendation. All investors should seek professional advice before investing. Market investments carry risks, and past performance is not indicative of future results.

The Upcoming IPOs in this week and coming weeks are Takyon Networks, Mehul Colours, Aditya Infotech, Sri Lotus Developers & Realty, Lakshmi India Finance, Jyoti Global Plast, B.D. Industries (Pune), Kaytex Fabrics, Umiya Mobile, Shree Refrigerations, Sellowrap Industries, Repono, Shanti Gold International, Patel Chem Specialities, NSDL.

The Current active IPO are Brigade Hotel Ventures, Indiqube Spaces, GNG Electronics, TSC India, Monarch Surveyors & Engineering Consultants.

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