Shanti Gold International’s ₹360-crore initial public offering (IPO) got off to a moderate start on its opening day, clocking 43% overall subscription by 11:45 AM on July 25. The bulk of the demand came from retail investors, while institutional interest remained tepid.
According to data available with exchanges, the retail investor portion saw a healthy 74% subscription out of the 63.33 lakh shares reserved. Non-Institutional Investors (NII) took up 37% of the 27.14 lakh shares allocated to them. On the other hand, Qualified Institutional Buyers (QIB) barely showed up, with negligible bids for the 36.19 lakh shares earmarked for them.
The IPO, which is entirely a fresh issue of 1.81 crore equity shares, opened for subscription today and will close on July 29. The price band has been fixed between ₹189 and ₹199 per share. The stock is expected to debut on the BSE and NSE on August 1.
Robust Grey Market Sentiment
Despite the lacklustre institutional participation so far, Shanti Gold’s shares are commanding a grey market premium (GMP) of around ₹40, suggesting a potential listing gain of approximately 20%. This upbeat sentiment reflects optimism about the company’s fundamentals and listing prospects.
About the Company
Mumbai-based Shanti Gold International is a B2B manufacturer of 22kt cubic zirconia (CZ) casting gold jewellery. It supplies to leading jewellery retail chains such as Joyalukkas, Lalithaa Jewellery Mart, and Alukkas, with a dominant presence in South India — a region that contributes over 70% of its revenue.
The company is now eyeing expansion into North India through a new 1,200 kg manufacturing unit in Jaipur, aimed at tapping into the plain gold jewellery segment.
Financial Highlights
Shanti Gold has posted impressive financial performance in recent years. Its revenue rose from ₹679 crore in FY23 to ₹1,106 crore in FY25, while net profit jumped from ₹19.8 crore to ₹55.8 crore in the same period — marking a strong compound annual growth rate (CAGR) of 68%.
EBITDA margins have improved to 8.83%, and the return on equity (RoE) stood at 44.85% in FY25. The IPO is priced at a post-issue price-to-earnings (P/E) ratio of 19x, which is at a discount to the industry average of 23x. However, its price-to-book ratio of 7x is slightly on the higher side compared to listed peers.
Should You Subscribe?
Several brokerages have recommended subscribing to the IPO. Canara Bank Securities noted:
“The company’s robust relationships with marquee jewellers, expanding design capabilities (over 400 designs/month), and controlled in-house manufacturing give it scale and brand trust in the B2B jewellery segment.”
Analysts acknowledge some risks, including regional and customer concentration, but believe the company’s growth trajectory and fundamentals make it an attractive bet.
(Disclaimer: The recommendations and views mentioned are those of the respective brokerages and analysts. They do not represent the views of Capital Mirror.)
