Introduction
India's IPO market is once again buzzing, and Shanti Gold International Ltd has emerged as a key player this week. With a 1.16x overall subscription on Day 1, the issue is attracting strong investor interest. But the key question remains—should you apply before the IPO closes on July 29, 2025?
This comprehensive report breaks down everything you need to know: from GMP trends and anchor investor participation to expert analysis and financial performance.
About the Company
Shanti Gold International Ltd is a well-established name in the Indian gold jewellery manufacturing sector. Renowned for its premium design quality and skilled craftsmanship, the company serves both Indian and international markets.
Business Model & Market Presence
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Focuses on designing, manufacturing, and distributing gold jewellery
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Supplies to wholesalers and retailers across India and overseas
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Continues to expand into new geographies and client segments
Production Capacity & Product Range
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Annual manufacturing capacity: 2,700 kg
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Key offerings: Bangles, chains, necklaces, rings, and customized jewellery
IPO Details
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Price Band: ₹189 – ₹199 per share
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Issue Period: July 25 – July 29, 2025
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Lot Size: 75 shares
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Minimum Retail Investment: ₹14,925 (at upper band)
Objectives of the Issue
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Repayment of ₹17 crore term loan
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Funding business expansion plans
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Strengthening working capital
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Enhancing liquidity and cash flow
Day 1 Subscription Status
As per BSE data, the IPO has shown strong early traction:
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Overall Subscription: 1.16x
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Retail Investors: 1.84x
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Non-Institutional Investors (NIIs): 1.09x
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Qualified Institutional Buyers (QIBs): 1% subscribed
The strong retail participation reflects growing confidence among individual investors.
Grey Market Premium (GMP) Insights
What is GMP?
Grey Market Premium is the price at which shares are being traded unofficially before listing. It offers early insights into market sentiment.
Shanti Gold GMP (Day 2)
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Current GMP: ₹40–₹45 per share
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Indicates a potential 15–20% listing gain
Note: GMP is speculative and not an assured indicator of listing performance. Investors should factor in fundamentals.
Anchor Investors Backing the IPO
The IPO has seen healthy institutional support, with over ₹108 crore invested by prominent anchor investors:
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Societe Generale
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Wealthwave Capital Fund
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Rajasthan Global Securities
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Astorne Capital VCC Arven
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J4S Venture Fund – I
Their participation adds credibility and market confidence to the offering.
Financial Performance
Year-on-Year Growth (FY24 vs FY25)
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Revenue: ₹711.43 crore → ₹1,106.41 crore (55.5% growth)
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Profit After Tax: ₹27 crore → ₹56 crore (2x increase)
Key Metrics
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Post-IPO P/E Ratio: ~19.2x
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Strong EBITDA margins
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Positive impact on cash flow expected post debt repayment
Debt Repayment Impact
Clearing the ₹17 crore loan to Saraswat Bank will reduce interest costs and improve profitability, enabling further reinvestment into the business.
Expert Opinions
GEPL Capital
Recommends subscribing, highlighting fair valuation, robust growth, and a scalable business model. Ideal for long-term investors.
Adroit Financial Services
Advises long-term subscription based on strong fundamentals, operational efficiency, and the debt-light balance sheet post-IPO.
Why It's a Promising Long-Term Bet
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Proven track record of revenue and profit growth
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Growing domestic and international market presence
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Debt reduction will boost profitability
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Favorable trends in India's gold and jewellery sector
Industry Outlook
Gold Jewellery Market in India
India is among the top consumers of gold globally. Driven by cultural demand, rising incomes, and wedding/festival seasons, the industry is poised for consistent growth.
Shanti Gold's Competitive Edge
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Efficient production process
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Premium design quality
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Focused on expanding into untapped Tier-2 and Tier-3 cities
Risks & Considerations
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Volatility in gold prices: Could impact inventory valuation and profit margins
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Competitive market landscape: Faces pressure from established players
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Regulatory uncertainties: Changes in taxation or import policies can affect operations
Should You Apply?
For Listing Gains
The current GMP and strong subscription in the retail segment point to likely listing gains. Ideal for short-term investors with moderate risk appetite.
For Long-Term Investment
The company's fundamentals, expansion plans, and reduced debt levels make it a solid long-term investment option. Backed by institutional investors and growing profits, Shanti Gold presents a promising opportunity for wealth creation.
Conclusion
The Shanti Gold International IPO stands out not just because of investor buzz, but also due to its financial performance, strong demand, and future prospects. Whether you're seeking listing gains or a long-term value play, the IPO offers compelling reasons to consider applying before it closes on July 29, 2025.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult a SEBI-registered financial advisor before making investment decisions. The author and publisher disclaim any liability for losses incurred based on this content.
