Shanti Gold IPO subscribed 7x on final day; should you apply? Check GMP, review, and more
Synopsis Ahead of its IPO, Shanti Gold International raised Rs 108 crore from anchor investors, including Societe Generale, Wealthwave Capital Fund, and Rajasthan Global Securities. The IPO is a complete fresh issue of 1.81 crore equity shares, aiming to raise Rs 360.11 crore. Shanti Gold International IPO had received an overall subscription of 6.88 times as of 10:15 a.m. on the last day of bidding, driven largely by strong demand from retail investors and non-institutional investors (NIIs). The grey market premium (GMP) for the IPO is hovering around Rs 37 per share, indicating a possible listing gain of approximately 18.5% over the upper end of the price band, which is set at Rs 199 per share.
ADVERTISEMENT The IPO is entirely a fresh issue, offering 1.81 crore equity shares to raise Rs 360.11 crore. The bidding opened on July 25 and will close today, July 29.
Retail investor enthusiasm has been notable, with the segment receiving 7.99 times subscription for the 63.33 lakh shares reserved for it. The NII category saw even stronger demand, being subscribed 13.38 times. In contrast, QIB participation has been modest, with minimal bids received for their allotted 36.19 lakh shares so far.
The grey market premium (GMP) for the IPO is around Rs 37 per share, suggesting a potential listing gain of about 18.5% over the upper price band of Rs 199. GMP reflects the unofficial price at which shares are expected to trade before listing. The IPO is priced in the range of Rs 189 to Rs 199 per share. Investors can apply for a minimum lot size of 75 shares, which amounts to Rs 14,925 at the upper end of the band, and in multiples thereafter.Ahead of the IPO, Shanti Gold International raised Rs 108 crore from anchor investors, with allocations going to names such as Societe Generale, Wealthwave Capital Fund, Rajasthan Global Securities, Astorne Capital VCC Arven, Shine Star Build Cap, Meru Investment Fund, and others, according to a filing on the BSE.
ADVERTISEMENT 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.
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Also read: Aditya Infotech IPO Opens: GMP at Rs 45 – Should you apply for the Rs 1,300 crore issue?
The company has shown robust financial growth over the past few years. 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%.
ADVERTISEMENT 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.Brokerages have recommended subscribing to the issue, citing strong financials, margin expansion, and a clear strategy to diversify its product mix and regional footprint.
ADVERTISEMENT "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)
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