Shanti Gold International made a strong debut on the National Stock Exchange (NSE) by listing at ₹227.55, delivering a 14.35% premium over its Initial Public Offering (IPO) price of ₹199. This positive listing is in line with investor expectations, supported by robust IPO subscription numbers and strong anchor investor participation. With this, Shanti Gold International joins the list of successfully listed jewellery sector IPOs in India, gaining investor attention for its niche in the 22kt CZ casting gold jewellery market.

The IPO of Shanti Gold International, a Book Built Issue worth ₹360.11 Crores, opened for subscription from July 25, 2025, to July 29, 2025, with shares allotted on July 30, 2025, and listing finalized for August 1, 2025, on both BSE and NSE. The issue included only a Fresh Issue of 1.80 crore equity shares, priced within a band of ₹189 to ₹199 per share, and was fully subscribed at the upper band.

With a minimum lot size of 75 shares, retail investors had to invest ₹14,925, while HNIs were required to invest in 14 lots (₹2,08,950). The IPO generated huge investor interest, receiving 22.49x overall subscription, highlighting the high level of confidence investors have in the company and its market position.

The Grey Market Premium (GMP) prior to listing was ₹16, indicating mild bullish sentiment, though as always, GMP is not an accurate indicator of listing price as it functions in the unregulated segment. Despite this, the listing at ₹227.55 came above market expectations, reflecting strong demand.

The anchor book was successfully raised at ₹108.03 Crores, with 54,28,800 equity shares allotted at ₹199, solidifying institutional trust in Shanti Gold’s financials and future growth. This move helped build positive sentiment, further boosting public subscription during the IPO window.

About Shanti Gold International

Founded in 2003, Shanti Gold International is among India’s top manufacturers of high-quality 22kt CZ casting gold jewellery. With a fully integrated manufacturing facility in Andheri East, Mumbai, spanning over 13,448.86 sq. ft., the company produces a wide array of jewellery items including bangles, rings, necklaces, and full wedding sets. As of May 31, 2025, the company employed 79 CAD designers, generating over 400 new designs per month, demonstrating its technological edge and design capabilities.

The company has long-standing relationships with major corporate jewellery brands like Joyalukkas India Limited, Lalithaa Jewellery Mart, Alukkas Enterprises, and Vysyaraju Jewellers, catering to markets across 15 Indian states, 2 union territories, and even four international locations. This vast customer base is further proof of the brand's trustworthiness and operational strength.

The IPO proceeds are being channelled toward four key objectives:

• ₹462.97 million for a new Jaipur manufacturing facility,

• ₹2,000 million for working capital requirements,

• ₹170 million for debt repayment, and

• The rest for general corporate purposes.

The strategic focus is on expanding both geographically and in product diversity, particularly targeting North India, where preferences for heavy gold jewellery still dominate.

Industry Landscape and Growth Drivers

India’s gems and jewellery sector is a major economic contributor, responsible for ~7% of GDP and 15% of total merchandise exports. The Indian retail sector, particularly in jewellery, is undergoing transformation with increased formalization, digital innovation, and a shift toward branded products. From 2020 to 2023, the domestic gold jewellery market grew at a CAGR of 31.5%, reaching ₹4,115 billion.

Gold jewellery demand in India is occasion-driven, peaking during weddings and festivals. Notably, South India accounts for 41% of national demand. Shanti Gold's current revenue concentration in South India (72.76%) positions it well in a high-demand region, though it also poses geographical concentration risk.

The rise of e-commerce in jewellery, with features like virtual try-ons and online consultations, is another driver of change. Brands that offer customized, certified, and light-weight jewellery are gaining traction, especially among younger urban customers.

The bridal jewellery segment remains critical, often forming over 23% of total wedding expenses, highlighting its cultural and financial significance. Shanti Gold’s product portfolio is tailored for these markets, giving it a competitive edge.

Key Strengths

1. Diverse Product Line: Shanti Gold designs a wide variety of jewellery suitable for multiple occasions, supported by in-house CAD teams and manual craftsmanship.

2. Fully Integrated Operations: With advanced machinery and in-house facilities, the company ensures quality control and production efficiency.

3. Experienced Promoters: The leadership team brings decades of experience, with additional business ties in the jewellery sector that help expand market presence.

4. Strong Financials: The company has demonstrated consistent revenue and profitability growth, giving investors confidence in its long-term sustainability.

5. Strategic Relationships: Partnerships with major brands like Joyalukkas and Lalithaa Jewellery Mart cement its position in the B2B jewellery segment.

Strategic Growth Plans

The company plans to leverage growth opportunities through:

• Expansion into North India to tap into new customer segments.

• Enhancing working capital to meet rising demand.

• Deepening penetration in international markets, especially where Indian diaspora drive demand.

• Establishing a new Jaipur facility, aiming to diversify into machine-made plain gold jewellery.

Risk Factors to Consider

• Geographical concentration, especially in South India, increases vulnerability to regional disruptions.

• Product concentration risk, with a narrow focus on 22kt CZ gold jewellery, limits diversification.

• A single manufacturing facility in Mumbai creates an operational dependency risk.

• The planned entry into a new product line (plain gold jewellery) may face market acceptance and operational challenges.

Post-Listing Strategy

Investors are now evaluating the company’s post-listing performance, keeping in mind its aggressive expansion strategies, solid financial track record, and strong promoter pedigree. While the ₹227.55 listing price offers a 14% premium, further price movements will depend on execution of growth plans, market conditions, and earnings trajectory.

For short-term investors, the listing gain may prompt partial profit booking, but long-term investors might find value in the company's expansion-driven model, especially if it successfully enters North Indian and global markets.

Conclusion

The successful listing of Shanti Gold International on the NSE at a 14% premium reflects strong investor faith in the company’s business fundamentals and market potential. As a manufacturer of high-quality 22kt CZ casting gold jewellery, Shanti Gold stands out in a fast-growing industry. Its post-IPO plans involving new facilities, expanded market presence, and enhanced working capital position it well for future growth.

However, investors must also stay alert to regional concentration risks, limited diversification, and execution challenges, especially with the new Jaipur facility and plain gold product line.

The Indian jewellery market, particularly in the organized retail segment, continues to thrive, offering ample opportunities for brands like Shanti Gold to scale. Investors with a medium to long-term horizon may consider tracking the company’s quarterly earnings, execution on growth initiatives, and expansion outcomes before making further investment decisions.

As the jewellery sector continues to modernize, companies like Shanti Gold International are well-positioned to capitalize on changing consumer preferences, increased formalization, and digital adoption—factors that will likely shape the sector’s next wave of growth.

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