Introduction: Shanti Gold IPO – A Glittering Opportunity for Investors
The Shanti Gold IPO is all set to hit the markets on July 25, 2025, offering investors a chance to buy into one of India’s rising jewelry manufacturers. Known for its high-quality 22kt CZ casting gold jewellery, Shanti Gold International Ltd has carved a niche for itself by combining traditional craftsmanship with modern design technology.
With a total issue size of ₹360.11 crore and a price band of ₹189–₹199 per share, the company is planning to raise fresh capital to expand its manufacturing capabilities, boost working capital, and repay debt. The Shanti Gold IPO will be listed on both the NSE and BSE, and the response from retail and institutional investors alike is being closely watched.
This IPO could be more than just a glittering listing—it might offer long-term value for investors seeking exposure to India’s growing jewellery consumption and organised retail expansion. But does the shine go beyond the surface? Let’s dig into the details.
Details & Dates: All You Need to Know About the Shanti Gold IPO
The Shanti Gold IPO is a book-building issue of ₹360.11 crore, comprising a fresh issue of 1.81 crore equity shares. There is no offer for sale (OFS), meaning all the funds raised will directly benefit the company.
IPO Snapshot
| Particulars | Details |
|---|---|
| IPO Type | Book Building Issue |
| Issue Size | ₹360.11 crore |
| Fresh Issue | 1,80,96,000 equity shares |
| Offer for Sale | Nil |
| Price Band | ₹189 to ₹199 per share |
| Face Value | ₹10 per share |
| Lot Size | 75 shares |
| Listing At | NSE and BSE |
| Lead Manager | Choice Capital Advisors Pvt Ltd |
| Registrar | Bigshare Services Pvt Ltd |
Important Dates (Tentative)
| Event | Date |
|---|---|
| IPO Opening Date | Friday, July 25, 2025 |
| IPO Closing Date | Tuesday, July 29, 2025 |
| Allotment Finalization | Wednesday, July 30, 2025 |
| Refund Initiation | Thursday, July 31, 2025 |
| Shares Credited to Demat | Thursday, July 31, 2025 |
| Listing Date | Friday, August 1, 2025 |
| UPI Mandate Cut-Off Time | 5:00 PM, July 29, 2025 |
Lot Size & Minimum Investment
Investors can bid for a minimum of 75 shares and in multiples thereafter. Here’s how the investment size breaks down across investor categories:
| Investor Type | Lots | Shares | Investment Amount (₹) |
|---|---|---|---|
| Retail (Min) | 1 | 75 | ₹14,925 |
| Retail (Max) | 13 | 975 | ₹1,94,025 |
| sNII (Min) | 14 | 1,050 | ₹2,08,950 |
| sNII (Max) | 67 | 5,025 | ₹9,99,975 |
| bNII (Min) | 68 | 5,100 | ₹10,14,900 |
Shanti Gold IPO Objectives: Where Will the Money Go?
The company plans to utilize the net proceeds from the Shanti Gold IPO for the following purposes:
| Objective | Amount (₹ crore) |
|---|---|
| Setting up a new facility in Jaipur for manufacturing | ₹46.30 |
| Working capital requirements | ₹200.00 |
| Repayment/prepayment of certain borrowings | ₹17.00 |
The remaining balance will be used for general corporate purposes.
Company Overview & Business Model: Inside the World of Shanti Gold
Established in 2003, Shanti Gold International Ltd is a Mumbai-based manufacturer of high-quality 22-karat CZ (cubic zirconia) casting gold jewellery. The company focuses on delivering intricately designed pieces that cater to both traditional and modern tastes—across wedding, festive, and daily wear categories.
Its product portfolio includes:
- Bangles
- Rings
- Necklaces
- Jewellery sets
What makes Shanti Gold stand out in India’s crowded jewellery market is its ability to control every aspect of the design and manufacturing process. The company owns a 13,448.86 sq ft in-house facility in Andheri East, Mumbai, with an annual production capacity of 2,700 kg. This gives the company better control over cost, quality, and lead time.
In addition to state-of-the-art infrastructure, the company employs:
- 80 CAD designers, producing 400+ new designs every month
- Precision equipment for design, casting, polishing, and quality control
- Contract labour for specialized work like manual stone setting
Furthermore, by integrating all production steps under one roof, Shanti Gold can ensure consistency and meet demand spikes during the festive and wedding seasons.
Pan-India Reach and B2B Focus
By May 31, 2025, the company had expanded its operations to 15 states and 1 union territory, with a presence in major cities like:
- Mumbai
- Bangalore
- Chennai
- Hyderabad
Rather than selling directly to consumers, Shanti Gold has built a strong B2B business model, focusing on long-term institutional clients. As a result, the company has developed robust supply partnerships with leading jewellery retailers across India.
For instance, some of its prominent clients include:
- Joyalukkas
- Lalitha Jewellery
- Alukkas Enterprises
- Vysyaraju Jewellers
- Shree Kalptaru Jewellers
Moreover, this business-to-business (B2B) approach provides predictable revenue streams and minimizes marketing overheads compared to direct retail.
Competitive Strengths
Shanti Gold’s strategic decisions have translated into several competitive advantages:
- Vast product range, tailored to Indian consumer preferences
- Strong in-house production and design, ensuring quality and faster turnaround
- Experienced promoters with deep industry knowledge
- Financially sound operations and increasing profit margins
- Established relationships with top jewellery chains across India
Meanwhile, the growing shift toward branded and organized jewellery in India puts Shanti Gold in a sweet spot. With its scalable infrastructure and growing market reach, the company is well-positioned to benefit from industry tailwinds.
Financial Overview: Shanti Gold’s Performance Shines Bright
Shanti Gold International Ltd has shown impressive financial growth over the last three years. Between FY23 and FY25, both revenue and profitability witnessed a significant jump—reflecting strong operational efficiency and market demand.
Moreover, the company’s focus on in-house manufacturing, design innovation, and long-term B2B partnerships has begun to pay off in terms of margin improvement and bottom-line growth.
Financial Highlights (₹ in Crore)
| Financial Year Ended | Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 |
|---|---|---|---|
| Revenue | 1,112.47 | 715.04 | 682.28 |
| EBITDA | 97.71 | 53.45 | 45.57 |
| PAT | 55.84 | 26.87 | 19.82 |
| Assets | 419.83 | 325.40 | 256.88 |
| Net Worth | 152.37 | 96.67 | 69.81 |
| Total Borrowings | 233.00 | 210.68 | 165.34 |
As shown above, revenue grew by 56%, while PAT more than doubled in FY25 compared to FY24. This indicates not just topline growth but also improved profitability and internal cost management.
Key Financial Ratios
In addition to raw numbers, Shanti Gold’s financial health looks promising based on key ratios:
| Metric | Value (FY25) | Interpretation |
|---|---|---|
| ROCE | 25.70% | Strong capital efficiency |
| RoNW | 44.85% | High returns for shareholders |
| Debt/Equity | 1.60 | Moderately leveraged |
| PAT Margin | 5.05% | Healthy for the jewellery sector |
| EBITDA Margin | 8.83% | Rising operational profitability |
| Price/Book Value | 7.05 | Reasonable premium valuation |
Furthermore, the Return on Net Worth (RoNW) and ROCE highlight that the company is efficiently using both its equity and capital to generate profits. While the Debt-to-Equity ratio of 1.60 indicates moderate leverage, the IPO funds will partly go towards debt reduction—expected to lower this ratio post-issue.
Valuation & Peer Comparison: Is Shanti Gold IPO Fairly Priced?
The valuation of Shanti Gold IPO offers a balanced perspective. On the upside, the company delivers high profitability metrics, such as a Return on Net Worth (RoNW) of 44.85% and a solid EPS of ₹10.34. On the flip side, the Price-to-Book Value (P/BV) ratio of 7.05x suggests the stock may be priced at a premium when compared to a few peers.
Let’s examine how Shanti Gold compares to other listed jewellery companies:
Peer Comparison (As of March 31, 2025)
| Company Name | EPS (₹) | NAV (₹) | P/E (x) | RoNW (%) | P/BV Ratio |
|---|---|---|---|---|---|
| Shanti Gold International | 10.34 | 28.22 | 19.25 | 44.85 | 7.05 |
| Utssav Cz Gold Jewels Ltd | 11.63 | 53.23 | 19.35 | 30.94 | — |
| RBZ Jewellers Ltd | 9.70 | 61.26 | 14.42 | 17.15 | 2.46 |
| Sky Gold & Diamonds Ltd | 9.52 | 46.61 | 34.53 | 28.59 | 20.87 |
Key Takeaways:
- Profitability Leader: Shanti Gold delivers the highest RoNW (44.85%), reflecting efficient capital utilization and consistent profitability.
- Healthy Earnings: The EPS of ₹10.34 is strong and comparable to or better than other sector players.
- Reasonable P/E: A P/E of 19.25x positions it between value (RBZ Jewellers at 14.42x) and premium (Sky Gold at 34.53x) plays.
- Asset Efficiency Concerns: With a NAV of ₹28.22, the P/BV of 7.05x indicates a rich valuation when compared to RBZ Jewellers (2.46x), though still lower than Sky Gold (20.87x).
Moreover, the company’s B2B focus, in-house production, and growing national footprint provide a compelling case for scalability. Investors looking for a combination of growth and brand-building potential may find value in this IPO, despite the relatively high book valuation.
GMP: What the Grey Market Signals About Shanti Gold IPO
As of 21st July 2025, the Grey Market Premium (GMP) for Shanti Gold IPO is ₹0, indicating no premium or discount over the issue price. Here’s a snapshot of the latest GMP data:
GMP Table
| Date | IPO Price | GMP | Estimated Listing Price | Estimated Profit | GMP Movement |
|---|---|---|---|---|---|
| 21-07-2025 | ₹199.00 | ₹0 | ₹199.00 | ₹0 (0.00%) | No Change Today |
What This Means:
- Neutral Sentiment: A flat GMP suggests that there is no speculative frenzy or bearishness around this IPO in the unlisted market.
- Listing Expectations: The stock is currently expected to list near its issue price unless broader market conditions change.
- Investor Caution: The lack of GMP movement may indicate that investors are waiting for stronger cues — such as Q1FY26 earnings or anchor investor interest — before pricing in a premium.
While GMP is a non-official indicator, many traders use it to gauge short-term listing potential. However, remember, GMP can fluctuate sharply closer to listing and may not reflect true fundamentals.
Conclusion: Should You Apply for Shanti Gold IPO?
The Shanti Gold IPO offers a mix of promising fundamentals and strong financials. However, like all SME IPOs, it’s essential to weigh both the upside potential and the inherent risks before investing.
Short-Term Strategy: Listing Gains or Wait-and-Watch?
On the surface, the IPO appears attractively priced based on earnings, with a P/E of 19.25x and RoNW of 44.85% — stronger than many peers. However, the flat GMP of ₹0 suggests a muted debut might be on the cards.
Therefore, in the short term:
- Conservative traders may want to skip if they were aiming solely for listing gains.
- On the other hand, if broader market sentiment turns bullish or anchor interest rises close to listing, the stock could surprise with a modest upside.
Long-Term Strategy: Growth Story Has Legs
From a long-term perspective, Shanti Gold’s strengths stand out:
- A strong export presence, especially in the UAE and Hong Kong.
- A healthy financial base with consistent profitability and an impressive RoNW of 44.85%.
- An efficient, asset-light model with global ambitions.
Additionally, the company’s expansion plan to grow its manufacturing and R&D footprint signals intent to scale — a positive indicator for long-term investors.
That said, since it operates in a highly competitive and volatile commodity-driven sector, monitoring margins and forex risks over the coming quarters is critical.
If you’re a patient investor with a medium-to-high risk appetite, this IPO deserves serious consideration for a 1–2 year horizon.
Allotment Strategy: How to Boost Your Chances
Being an SME IPO, allocation happens on a lottery basis in the retail category.
Here’s what you should keep in mind:
- Apply through multiple demat accounts (linked to different PANs in your family) to increase your odds.
- The lot size is likely one lot per application, so there’s no advantage in bidding higher amounts.
- Given that institutional interest and HNI oversubscription can spike in the final hours, early bidding on Day 1 or Day 2 may improve your visibility.
FAQs on Shanti Gold IPO
🔹 What is the Shanti Gold IPO opening and closing date?
The Shanti Gold IPO will open on July 22, 2025, and close on July 24, 2025. Investors can place their bids during these three days.
🔹 What is the IPO price and lot size of Shanti Gold?
The issue is priced in the band of ₹193 to ₹199 per share. The lot size is 600 shares, which means the minimum investment for retail investors is ₹1,19,400.
🔹 Is there any discount for retail or employee investors in Shanti Gold IPO?
No, the Shanti Gold IPO does not offer any discount to retail or employee categories. Allotment is purely on a lottery basis at the final issue price.
🔹 What is the objective of Shanti Gold IPO?
The IPO proceeds will be used for:
- Working capital needs
- General corporate purposes
- Meeting public issue expenses
The funds aim to support growth and boost operational efficiency.
🔹 What is Shanti Gold’s financial track record?
Shanti Gold has shown strong growth in FY24 with:
- Revenue of ₹108.36 crore
- Net profit of ₹8.27 crore
- Excellent Return on Net Worth of 44.85%
This indicates efficient use of capital and robust margins.
🔹 What is the GMP (Grey Market Premium) of Shanti Gold IPO?
As of July 21, 2025, the GMP is ₹0, indicating a neutral listing expectation. However, GMP can change closer to the listing date based on demand and sentiment.
🔹 Is Shanti Gold IPO a good investment?
Shanti Gold is fundamentally strong with high RoNW and consistent profitability. But the jewellery and bullion sector is competitive, and IPO valuations are slightly premium (P/B of 7.05x). Investors with a long-term view and moderate risk appetite may consider applying.
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