The retail segment led with 74% subscription of the 63.33 lakh shares reserved for them. Non-Institutional Investors (NII) subscribed to 37% of the 27.14 lakh shares available in their category. However, Qualified Institutional Buyers (QIB) showed minimal enthusiasm, with only negligible bids for the 36.19 lakh shares allotted to them. This IPO, comprising a pure fresh issue of 1.81 crore equity shares, opened for subscription on Friday, July 25, and will close on July 29. The price band has been set between Rs 189 and Rs 199 per share.
Shanti Gold International is set to list on the BSE and NSE on August 1. Its shares are commanding a grey market premium (GMP) of around 40, indicating a potential listing gain of nearly 20%. Despite subdued institutional participation, the upbeat GMP reflects investor optimism around the stock’s debut.
Shanti Gold International, a Mumbai-based manufacturer of 22kt CZ casting gold jewellery, operates primarily on a B2B model and caters to large retail chains including Joyalukkas, Lalithaa Jewellery Mart and Alukkas.
Its designs are sold across southern India, which currently contributes more than 70% of revenue. The firm plans to expand into North India with a new 1,200 kg manufacturing unit in Jaipur — a strategic move to enter the plain jewellery segment.
Financially, the company has shown robust growth. Revenue rose from Rs 679 crore in FY23 to Rs 1,106 crore in FY25, while net profit surged from Rs 19.8 crore to Rs 55.8 crore during the same period, reflecting a strong CAGR of 68%.Ebitda margins have expanded steadily to 8.83%, and the return on equity (RoE) stood at a healthy 44.85% in FY25. The IPO values the company at a post-issue P/E of 19x, which is at a discount to the industry average of 23x. However, the price-to-book valuation at 7x appears slightly stretched compared to listed peers.
Should you subscribe?
Multiple brokerages have recommended subscribing to the issue, citing strong financials, margin expansion, and a clear strategy to diversify its product mix and regional footprint.
Also read: NSDL sets price band at Rs 760-800 for IPO opening on July 30; Check GMP and key details
“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,” said Canara Bank Securities.
While risks such as customer and regional concentration exist, the growth momentum and business fundamentals remain attractive.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)