Shanti Gold International Limited, a leading player in the Indian jewellery manufacturing space, successfully closed its Initial Public Offering (IPO) on July 29, 2025. The IPO, a book-built issue amounting to ₹360.11 crore, consisted entirely of a fresh issue of 1.80 crore equity shares. The price band was fixed at ₹189 to ₹199 per share, with a lot size of 75 shares, making the minimum investment for retail investors ₹14,925.

The offering witnessed overwhelming response from investors, being subscribed 22.49 times by the final day. The IPO opened for subscription on July 25 and closed on July 29. The basis of allotment is expected to be finalized by Wednesday, July 30, 2025, and the shares are expected to be listed on the NSE and BSE on or around August 1, 2025.

About Shanti Gold International Limited

Shanti Gold International is a premier manufacturer of high-quality 22kt CZ casting gold jewellery, specializing in the design and production of bangles, rings, necklaces, and complete sets. Its product portfolio caters to weddings, festivals, and daily wear across various price points. The company boasts a large installed production capacity and operates across India.

Its promoters, Pankajkumar H. Jagawat, Manojkumar N. Jain, and Shashank Bhawarlal Jagawat, collectively bring over 56 years of industry experience, providing strategic leadership and executional excellence.

IPO Details at a Glance

Anchor Investor Participation

On July 24, 2025, the company raised ₹108.03 crore from anchor investors. A total of 54,28,800 equity shares were allotted at the upper price band of ₹199. This participation from institutional investors reflects their confidence in Shanti Gold’s business model and growth trajectory.

GMP and Expected Listing Gains

As of July 29, 2025, the Grey Market Premium (GMP) for the Shanti Gold International IPO stood at ₹16, implying an 8.04% premium over the upper price band. This translates to an expected listing price of approximately ₹215 per share. However, it is important to note that GMP is unofficial and speculative, and does not guarantee actual listing performance.

Subscription Status (As of 7 PM, July 29, 2025)

The IPO received strong interest across all investor categories:

• Qualified Institutional Buyers (QIBs): Subscribed heavily

• Non-Institutional Investors (NIIs): Oversubscribed significantly

• Retail Investors (RIIs): Well-subscribed

This robust demand suggests investor confidence in the company’s fundamentals and growth outlook.

Financial Performance Overview

Shanti Gold has demonstrated strong financial growth in recent years:

• FY23 Revenue: ₹6,822.75 Million

• FY24 Revenue: ₹7,150.38 Million

• FY25 Revenue: ₹11,124.67 Million

EBITDA has also shown a positive trajectory:

• FY23 EBITDA: ₹455.70 Million

• FY24 EBITDA: ₹534.54 Million

• FY25 EBITDA: ₹977.14 Million

Net profit growth has remained consistent:

• FY23 PAT: ₹198.19 Million

• FY24 PAT: ₹268.68 Million

• FY25 PAT: ₹558.42 Million

This consistent growth highlights the company’s operational strength and market demand for its jewellery products.

Key Financial Ratios (FY24)

• Pre-Issue EPS: ₹10.34

• Post-Issue EPS: ₹7.75

• Pre-Issue P/E: 19.24x

• Post-Issue P/E: 25.69x

• Industry P/E: 24x

• ROCE: 25.70%

• ROE / RoNW: 44.85%

These metrics indicate that while the IPO is fairly priced, it is in line with industry standards.

IPO Objectives

The net proceeds of the IPO will be utilized as follows:

1. ₹46.29 crore for setting up a new production facility in Jaipur

2. ₹200 crore for working capital needs

3. ₹17 crore for repayment of certain borrowings

4. Balance for general corporate purposes

The proposed Jaipur facility is expected to increase production capacity, improve margins, and expand customer base across domestic and international markets.

Allotment & How to Check Status

Allotment Date: July 30, 2025

Investors can check their allotment status by visiting the registrar’s website (Bigshare Services Pvt Ltd). Here are the steps:

1. Go to the IPO allotment page

2. Select "Shanti Gold International IPO"

3. Enter PAN or Application Number or DP ID

4. Click “Search” to view allotment details

Day-wise GMP Trend

IPO Review & Recommendation

Shanti Gold International is well-positioned in the premium jewellery market. Its consistent financial growth, experienced promoters, and strong market presence provide a solid foundation for expansion. The IPO is fully priced, but the demand in the grey market and anchor investor confidence reflect positive sentiment.

Given the listing premium and company fundamentals, the IPO is recommended for risk-tolerant investors looking for short-term listing gains.

Disclaimer:

This article is for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any securities. Investors must consult with their financial advisor before making investment decisions. Past performance is not indicative of future results. Investing in securities involves risks.

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