Shanti Gold International IPO: Complete Investment Analysis
Comprehensive guide to India’s leading 22kt CZ casting gold jewellery manufacturer’s public offering
₹360.11 Cr
IPO Size
₹189-199
Price Band
2.05x
Subscription (Day 2)
₹39
Grey Market Premium
🎯 Bottom Line Up Front
- Strong Performance: IPO subscribed 2.05x by Day 2, led by retail investors at 3.08x
- Healthy GMP: ₹39 premium indicates 19.6% potential listing gains
- Financial Growth: 56% revenue growth and 108% PAT increase in FY25
- Market Position: Leading manufacturer of 22kt CZ casting gold jewellery with 2,700kg annual capacity
- Investment Recommendation: Moderate buy for long-term investors seeking exposure to organized jewellery sector
IPO Overview & Key Details
| Company Name | Shanti Gold International Limited |
| IPO Size | ₹360.11 Crores (Fresh Issue) |
| Share Allotment | 1.81 Crore Equity Shares |
| Price Band | ₹189 – ₹199 per share |
| Face Value | ₹10 per share |
| Lot Size | 75 shares |
| Minimum Investment | ₹14,925 (Retail) |
| Subscription Period | July 25-29, 2025 |
| Allotment Date | July 30, 2025 |
| Listing Date | August 1, 2025 |
| Exchanges | BSE, NSE |
| Registrar | Bigshare Services Pvt Ltd |
| Lead Manager | Choice Capital Advisors Pvt Ltd |
🏆 About Shanti Gold International
Incorporated in 2003, Shanti Gold International Limited is a Mumbai-based manufacturer specializing in high-quality 22kt Cubic Zirconia (CZ) casting gold jewellery. The company operates through a fully integrated in-house manufacturing system with an annual installed capacity of 2,700 kg, serving 455+ customers across India through a B2B model.
Fund Utilization
- Working Capital Requirements: To support business expansion and operations
- Proposed Jaipur Facility: Capital expenditure for new manufacturing unit
- Debt Repayment: Repay/prepay outstanding borrowings
- General Corporate Purposes: Strategic initiatives and growth plans
Subscription Status & Market Response
Category-wise Subscription Status (Day 2)
| Category | Subscription | Status |
|---|---|---|
| Retail Individual Investors (RII) | 3.08 times | Strong demand |
| Non-Institutional Investors (NII) | 2.16 times | Healthy response |
| Qualified Institutional Buyers (QIB) | 0.01 times | Poor institutional interest |
| Overall Subscription | 2.05 times | Good demand |
Grey Market Performance
📈 Current GMP Analysis
Grey Market Premium: ₹39 per share
Expected Listing Price: ₹238 (₹199 + ₹39)
Potential Listing Gains: 19.6% above upper price band
Kostak Rate: Information not available
⚠️ Important Note: Grey Market Premium is volatile and can change rapidly. The poor QIB response (0.01x) indicates institutional skepticism, which investors should consider seriously before making investment decisions.
Anchor Investor Interest
Shanti Gold International successfully raised ₹108 crores from anchor investors prior to the public issue, demonstrating some institutional confidence in the company’s prospects.
Financial Performance Analysis
Revenue & Profit Growth (FY24 vs FY25)
Key Financial Metrics
| Metric | FY24 | FY25 | Growth |
|---|---|---|---|
| Revenue | ₹715.04 Crores | ₹1,112.47 Crores | +56% |
| Profit After Tax (PAT) | ₹26.87 Crores | ₹55.84 Crores | +108% |
| Net Profit Margin | 3.76% | 5.02% | +1.26% |
| Earnings Per Share (EPS) | – | ₹10.34 | – |
| P/E Ratio (at upper price) | – | 19.24 | – |
Valuation Analysis
✅ Financial Strengths
- Exceptional revenue growth of 56% YoY
- Doubled profit margins with 108% PAT growth
- Improving operational efficiency
- Strong cash generation capabilities
- Reasonable P/E ratio of 19.24
❌ Areas of Concern
- Limited financial track record available
- Dependence on gold price volatility
- Working capital intensive business
- Seasonal demand patterns
- Single facility operational risk
💡 Financial Outlook
The company’s financial performance shows strong momentum with consistent growth in both revenue and profitability. The significant improvement in profit margins indicates better operational efficiency and pricing power. However, investors should monitor the sustainability of this growth trajectory, especially given the company’s exposure to gold price fluctuations and economic cycles.
Business Model & Operations
Core Business Focus
Shanti Gold International operates as a pure B2B manufacturer of 22kt Cubic Zirconia (CZ) casting gold jewellery, specializing in high-quality, intricately designed pieces for major jewellery retailers across India.
Manufacturing Capabilities
| Manufacturing Facility | Andheri East, Mumbai (13,448.86 sq ft) |
| Annual Capacity | 2,700 kg of gold jewellery |
| Technology | Advanced CAD systems & casting machines |
| Design Team | 79 in-house CAD designers |
| Design Output | 400+ new designs monthly |
| Workforce | 222 employees + 100 contract laborers |
Product Portfolio
- Bangles: Traditional and contemporary designs
- Rings: Engagement, wedding, and fashion rings
- Necklaces: Various lengths and patterns
- Bridal Sets: Complete wedding jewelry collections
- Earrings: Studs, hoops, and traditional designs
Market Presence & Customer Base
Customer Growth Trajectory
Key Clients
- Joyalukkas India Ltd – Leading jewelry retailer
- Lalithaa Jewellery Mart Ltd – South India focused chain
- Alukkas Enterprises Pvt Ltd – Premium jewelry brand
- Vysyaraju Jewellers Pvt Ltd – Traditional jewelry specialist
- Shree Kalptaru Jewellers – Regional jewelry retailer
Geographic Reach
Operates across 15 states and 2 union territories with branch offices in:
- Maharashtra (Mumbai headquarters)
- Tamil Nadu, Karnataka, Andhra Pradesh, Telangana
- Gujarat, Madhya Pradesh
- Major cities: Bangalore, Chennai, Hyderabad
Expansion Plans
🚀 Proposed Jaipur Facility
Timeline: Operations expected to commence by Q3 FY2026
Capacity Addition: Will increase total capacity to 3,900 kg annually
Strategic Benefits: Reduced dependence on single Mumbai facility, cost optimization, improved supply chain efficiency
Funding: Part of IPO proceeds allocated for this expansion
Competitive Strengths
✅ Key Advantages
- Fully integrated in-house manufacturing
- Strong design innovation capability
- Established relationships with marquee clients
- High-quality 22kt CZ casting specialization
- Experienced management with 20+ years industry expertise
- Asset-light model with outsourced stone-setting
❌ Business Risks
- Heavy dependence on few large clients
- Single facility operational risk
- Gold price volatility impact
- Intense competition in jewelry sector
- Seasonal demand fluctuations
- Regulatory compliance requirements
Investment Analysis & Recommendations
Investment Thesis
🎯 Why Consider Shanti Gold IPO?
Growth Trajectory: Exceptional 56% revenue growth and 108% profit growth demonstrates strong business momentum
Market Position: Leading player in organized 22kt CZ casting gold jewelry segment with proven track record
Scalability: Planned Jaipur facility expansion will increase capacity by 44% and reduce concentration risk
Quality Clientele: Strong relationships with established jewelry brands ensure stable revenue streams
Risk Assessment
⚠️ Key Investment Risks:
- QIB Concerns: Extremely poor institutional participation (0.01x) raises red flags
- Gold Price Sensitivity: Profitability directly linked to gold price fluctuations
- Client Concentration: Heavy dependence on top 5-10 clients for majority of revenue
- Single Facility Risk: Current operations concentrated in one Mumbai location
- Working Capital Intensive: Significant capital requirements for inventory and operations
Valuation Comparison
| Valuation Metric | Shanti Gold | Industry Average | Assessment |
|---|---|---|---|
| P/E Ratio | 19.24 | 15-25 | Reasonable |
| Revenue Growth | 56% | 10-20% | Excellent |
| Profit Margin | 5.02% | 3-8% | Healthy |
| Market Cap | ₹1,435 Cr | – | Mid-cap |
Investment Recommendations
✅ Suitable For
- Long-term Investors: 3-5 year investment horizon
- Growth Seekers: Exposure to organized jewelry sector
- Diversification: Adding jewelry manufacturing to portfolio
- Quality Play: Established business with proven clients
❌ Not Suitable For
- Risk-Averse Investors: High business volatility
- Short-term Traders: Limited institutional support
- Value Investors: Premium valuation at current levels
- Conservative Portfolio: Cyclical business nature
Investment Strategy
💡 Recommended Approach
Rating: MODERATE BUY for long-term investors
Allocation: 1-2% of equity portfolio maximum
Entry Strategy: Apply for retail quota given strong retail demand
Exit Strategy: Book profits on 30-50% gains in 12-18 months
Stop Loss: Consider exit if listing price falls below ₹180
Listing Day Expectations
Based on current market conditions and GMP trends:
- Expected Listing Range: ₹220-250 per share
- Listing Premium: 10-25% above upper price band
- First Day Trading: Expect high volatility due to retail interest
- Volume: Good trading volumes expected initially
⚠️ Important Disclaimer: The poor institutional response (QIB subscription at 0.01x) is a significant concern that potential investors must carefully consider. This indicates that professional institutional investors have serious reservations about the company’s valuation or business prospects.
IPO Performance Metrics Overview
Frequently Asked Questions
The IPO shows strong retail demand and healthy financial growth, making it suitable for long-term investors seeking exposure to the organized jewelry sector. However, the poor institutional response (QIB at 0.01x) is concerning. Apply only if you have a 3-5 year investment horizon and can tolerate volatility. Consider it as a small allocation (1-2%) in your portfolio.
QIB (Qualified Institutional Buyers) subscription at 0.01x indicates that professional investors like mutual funds, insurance companies, and FIIs have serious concerns about the company’s valuation or business prospects. This could signal overpricing or fundamental business issues that retail investors should carefully consider.
Grey Market Premium is highly volatile and can change rapidly. While ₹39 GMP suggests 19.6% listing gains, it’s not guaranteed. The poor institutional interest could negatively impact listing performance. Investors should not base decisions solely on GMP and should consider fundamental factors.
Major risks include: (1) Gold price volatility affecting profitability, (2) Dependence on few large clients, (3) Single facility operational risk, (4) Poor institutional support, (5) Working capital intensive business model, (6) Intense competition in jewelry sector, and (7) Regulatory compliance requirements.
Shanti Gold shows exceptional growth metrics (56% revenue, 108% PAT growth) compared to industry averages. However, it’s primarily a B2B manufacturer unlike retail-focused jewelry companies. The P/E ratio of 19.24 is reasonable for the growth rate. The company’s specialization in 22kt CZ casting jewelry provides a niche positioning.
Shanti Gold International shares are expected to list on BSE and NSE on August 1, 2025. The allotment process will be finalized on July 30, 2025. Investors can check allotment status through the registrar Bigshare Services’ website or by visiting the BSE/NSE websites.
The minimum investment for retail investors is ₹14,925 for 1 lot of 75 shares at the upper price band of ₹199. HNI investors need to apply for minimum 14 lots (1,050 shares) worth ₹2,08,950. The lot size is fixed at 75 shares and applications must be in multiples of this lot size.
The ₹360.11 crore fresh issue proceeds will be used for: (1) Funding working capital requirements, (2) Setting up the proposed Jaipur manufacturing facility, (3) Repaying outstanding borrowings, and (4) General corporate purposes. The Jaipur facility is expected to increase total capacity to 3,900 kg annually.
Conclusion & Final Recommendation
Shanti Gold International IPO presents a mixed investment opportunity with both compelling strengths and notable concerns. The company demonstrates exceptional financial performance with 56% revenue growth and 108% PAT increase, establishing itself as a leading player in the organized 22kt CZ casting gold jewelry segment.
Key Positives
- Strong Financial Performance: Consistent growth trajectory with improving margins
- Market Leadership: Established position in niche 22kt CZ casting segment
- Quality Client Base: Long-term relationships with marquee jewelry brands
- Expansion Plans: Jaipur facility to reduce concentration risk and increase capacity
- Retail Demand: Strong subscription from retail investors (3.08x)
Major Concerns
- Institutional Skepticism: Poor QIB response (0.01x) raises serious valuation concerns
- Business Risks: Single facility dependency and client concentration
- Market Volatility: Exposure to gold price fluctuations and economic cycles
- Competitive Pressure: Intense competition in jewelry manufacturing
🎯 Investment Verdict
Rating: MODERATE BUY with Caution
- For Long-term Investors: Consider small allocation (1-2% of portfolio) if you believe in India’s jewelry sector growth
- Risk Profile: High volatility expected; suitable only for risk-tolerant investors
- Time Horizon: Minimum 3-5 years to realize growth potential
- Strategy: Apply in retail category given strong demand, but be prepared for listing volatility
- Exit Plan: Consider partial profit booking on 30-50% gains
⚠️ Final Disclaimer: This analysis is for educational purposes only and should not be considered as investment advice. The poor institutional response is a significant red flag that potential investors must carefully evaluate. Always consult with a qualified financial advisor and conduct your own research before making investment decisions. Past performance does not guarantee future results, and all investments carry inherent risks.
Official Website of Shanthi Gold
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