What makes a gold IPO glitter—and when does it just shine on the surface?
This is the key question facing retail investors as Shanti Gold International Ltd opens its ₹360-crore IPO for public bidding. With a 55% YoY revenue spike and major names like Joyalukkas and Lalithaa Jewellery in its client list, the numbers may sparkle—but should you buy in?
In this detailed breakdown, we’ll cut through the noise around Shanti Gold IPO, explore financials, market buzz, GMP, and brokerage verdicts—so you can make a confident, long-term decision.
💎 Shanti Gold IPO Overview: Why All the Buzz?
Founded in 2003, Shanti Gold International Ltd is a pure-play B2B manufacturer of 22kt CZ casting gold jewellery. From rings and necklaces to bridal sets, they supply leading retailers across 15 Indian states and 1 UT.
IPO Key Details:
- IPO Size: ₹360.11 crore (entirely fresh issue of 1.81 crore shares)
- Price Band: ₹189–₹199 per share
- Lot Size: 75 shares (minimum investment ₹14,175)
- IPO Dates: July 25 – July 29, 2025
- Listing Date (tentative): August 1, 2025 (BSE, NSE)
- Lead Manager: Choice Capital Advisors Pvt Ltd
- Registrar: Bigshare Services Pvt Ltd
GMP Update:
As of July 28, 2025, the Grey Market Premium (GMP) stood at ₹38—indicating an expected listing price of ₹237/share, or a 19.10% premium.
🧠 What You Should Remember:
GMP is not a guarantee of listing gains, but it reflects short-term investor sentiment. For long-term investors, fundamentals matter more.
🏭 Business Strength: Built for Scale & Relationships
What sets Shanti Gold apart?
- In-House Manufacturing: A complete setup in Andheri East, Mumbai (13,400+ sq. ft.)
- Production Capacity: 2,700 kg per year
- Clientele: Major retailers like Joyalukkas, Lalithaa Jewellery, Alukkas Enterprises
- Geographical Reach: Strong presence in South & West India, expanding into North via new Jaipur plant
Financial Performance:
| FY | Revenue (₹ Cr) | Net Profit (₹ Cr) |
| FY24 | 711.43 | 27.00 |
| FY25 | 1,106.41 | 56.00 |
🧠 What You Should Remember:
Shanti Gold’s doubling of PAT in a single year (FY24 to FY25) shows scalability and improving margins—important for any manufacturing business.
📈 IPO Proceeds: Where Will the Money Go?
Out of the ₹360 crore:
- ₹46.3 Cr → New Jaipur facility (expanding market reach)
- ₹200 Cr → Working capital (crucial for B2B bulk orders)
- ₹17 Cr → Loan repayment (Saraswat Bank)
- Balance → General corporate purposes
🔍 Noteworthy:
The total debt stood at ₹242 Cr as of May 2025—reducing debt will directly impact cash flow strength.
🧠 What You Should Remember:
Strategic use of IPO proceeds toward expansion and debt reduction signals good financial hygiene—a green flag.
🔍 Brokerages Weigh In: Subscribe or Skip?
📌 Marwadi Shares and Finance:
“Subscribe – The company is financially stable and well-positioned in the jewellery manufacturing sector.”
📌 Canara Bank Securities:
“Slightly overpriced at 7x PB vs. 5x PB peers, but the B2B strength and Jaipur plant make it a long-term buy.”
📌 Anand Rathi:
“Strong relationships with top-tier jewellery brands, presence in 15 states—Subscribe for the long haul.”
📌 GEPL Capital:
“Valued at 19.2x P/E—reasonable vs peers. Good growth, improving margins—Subscribe.”
📌 Adroit Financial:
“Post-IPO, improved cash flow and market expansion make it a Subscribe. But watch for gold price volatility.”
🧠 What You Should Remember:
Nearly all brokerages agree—Shanti Gold is a fundamentally sound long-term play, but not a low-risk, quick-flip IPO.
📊 Risks Investors Should Note
Even with glowing reviews, no IPO is risk-free. Here are a few red flags to consider:
- Gold Price Dependency: Any major dip in gold prices could impact inventory valuation and B2B pricing power.
- High Working Capital Needs: B2B jewellery demands bulk manufacturing, which means high upfront cash cycles.
- Valuation Premium: At 7x Price-to-Book, it’s slightly above the peer average, though justified by growth.
🧠 What You Should Remember:
Understand your risk appetite—this IPO suits long-term investors with a medium-high risk threshold.
🛍️ Retail Participation: What’s the Crowd Saying?
By Day 2 (July 28, 2025):
- Total Subscription: 4.93x
- Retail Category: 6.61x
- NII (HNI) Category: 7.53x
- QIB (Institutional): 0.05x
🔎 Interpretation:
Retail and HNIs are bullish. Institutional investors may be waiting till the last day or considering valuation metrics more deeply.
🧠 What You Should Remember:
High retail interest often boosts listing-day momentum, but true value plays out over quarters—not hours.
🏆 How Shanti Gold Compares to Peers
| Metric | Shanti Gold | Peer Average |
| P/E Ratio (FY25) | 19.2x | 18-22x |
| P/B Ratio | 7.0x | 5.0x |
| Revenue Growth YoY | 55.5% | 20–30% |
| Net Margin | ~5.0% | 3–5% |
| Market Presence | Pan-India | Regional |
🧠 What You Should Remember:
While valuation is on the higher side, Shanti’s growth justifies a slight premium—especially with geographic expansion in play.
📌 Final Verdict: Should You Invest in Shanti Gold IPO?
If you’re looking for a steady-growth, B2B-focused jewellery stock with:
- Solid financials
- National retail tie-ups
- Expansion into Northern markets
- Debt reduction and reinvestment strategy
👉 Then Shanti Gold IPO is worth subscribing— but with a long-term horizon.
🚫 Avoid if:
- You’re seeking quick listing gains only
- You’re uncomfortable with gold price fluctuations
Your risk tolerance is low
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