Shanti Gold International Limited, a reputed player in the gold jewellery manufacturing sector, is launching its Initial Public Offering (IPO) on July 25, 2025, with the subscription window remaining open till July 29, 2025. The company aims to raise ₹360.11 crores through this book-built IPO, which is entirely a fresh issue comprising 1.81 crore equity shares.

The IPO is set to list on both BSE and NSE, with a tentative listing date of August 1, 2025. The price band is fixed at ₹189 to ₹199 per equity share, with a face value of ₹10 each. The minimum lot size for retail investors is 75 shares, translating to a minimum investment of ₹14,925.

IPO Structure and Investment Breakdown

For retail investors, the IPO presents an opportunity to apply with as low as one lot (75 shares), while High Net-worth Individuals (HNIs) have their own investment slabs:

• sNII can apply for a minimum of 14 lots (1,050 shares) at ₹2,08,950

• bNII must invest 68 lots (5,100 shares) amounting to ₹10,14,900

The IPO allotment will likely be finalized on July 30, 2025, with shares credited to Demat accounts by July 31, 2025. The registrar for the issue is Bigshare Services Pvt Ltd, and the lead manager is Choice Capital Advisors Pvt Ltd.

Company Overview: Shanti Gold International Ltd.

Incorporated in 2003, Shanti Gold International is known for its high-quality 22kt cubic zirconia (CZ) casting gold jewellery. With a strong presence across 15 states and one union territory, and branches in metro cities like Mumbai, Bangalore, Chennai, and Hyderabad, the company has positioned itself as a go-to brand for jewellery for weddings, festivals, and daily wear.

Their 13,448 sq. ft. Andheri East, Mumbai-based manufacturing facility has an annual production capacity of 2,700 kg. The company uses a combination of advanced machinery and manual craftsmanship. With a team of 80 CAD designers, Shanti Gold is capable of producing 400 new designs each month.

Its clientele includes leading corporate jewellery brands like:

• Joyalukkas

• Lalitha Jewellery

• Alukkas Enterprises

• Vysyaraju Jewellers

• Shree Kalptaru Jewellers

As of May 2025, the workforce includes 222 employees and 100 contract workers.

Competitive Strengths

• Extensive and diverse product range tailored to different price points and occasions

• Complete in-house production including design, manufacturing, and packaging

• Experienced promoters with deep industry knowledge

• Long-standing relationships with leading jewellery brands

• Financial stability with consistent growth

Financial Performance

The company has exhibited strong financial growth, especially in the last fiscal year:

The revenue has grown by 56% while PAT has increased by 108% in FY25 as compared to FY24, reflecting a robust growth trajectory.

Key Performance Indicators

• ROCE: 25.70%

• RoNW: 44.85%

• PAT Margin: 5.05%

• EBITDA Margin: 8.83%

• Price-to-Book Value: 7.05

• Debt-to-Equity Ratio: 1.60

Compared to the industry average P/E of 27x, the IPO appears to be moderately valued.

Objectives of the IPO

The company intends to utilise the IPO proceeds as follows:

1. ₹46.30 Cr for setting up a new manufacturing unit in Jaipur

2. ₹200 Cr for working capital

3. ₹17 Cr for partial debt repayment

4. The remaining for general corporate purposes

The proposed Jaipur unit signals the company’s ambitious expansion plans and future growth potential.

Promoter Holding

Promoters include:

• Pankajkumar H Jagawat

• Manojkumar N Jain

• Shashank Bhawarlal Jagawat

Their pre-issue holding is 99.99%, which will reduce to 74.89% post-IPO, reflecting a reasonable level of equity dilution.

Should You Subscribe to Shanti Gold International IPO?

Given the company’s:

• Consistent financial performance

• Healthy profit margins and return ratios

• Experienced management and solid customer base

• Reasonable valuation relative to peers

Disclaimer:
This analysis is for educational and informational purposes only. It does not constitute investment advice or a solicitation to buy or sell any securities. Investors should perform their own due diligence or consult a SEBI-registered financial advisor before making any investment decisions. All data is based on information available as of the publication date and may be subject to change.

The Upcoming IPOs in this week and coming weeks are Sellowrap Industries, Repono, Shanti Gold International, Indiqube Spaces, GNG Electronics, Brigade Hotel Ventures, Patel Chem Specialities, Monarch Surveyors & Engineering Consultants, TSC India, NSDL.

The Current active IPO are Swastika Castal, Savy Infra.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

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