Exploring Shanti Gold International IPO: A Comprehensive Investor's Guide
The Indian primary market is abuzz with new opportunities, and one such glittering prospect is the Shanti Gold International IPO. As a leading player in the gold jewellery manufacturing sector, Shanti Gold International Limited is set to make its debut on the stock exchanges, inviting investors to be part of its growth journey. This comprehensive guide will break down all you need to know about this upcoming Initial Public Offering, from its business model to its financials and future plans.
Shanti Gold International: Crafting Excellence in Gold Jewellery
Established in 2003, Shanti Gold International Limited has carved a niche for itself in the intricate world of gold jewellery. The company specializes in manufacturing high-quality 22kt CZ casting gold jewellery, emphasizing sophisticated design and meticulous production.
Key highlights of their business include:
- Diverse Product Portfolio: They offer a wide array of exquisitely designed jewellery, including bangles, rings, necklaces, and comprehensive sets. Their collections cater to various occasions, from grand weddings and festive celebrations to elegant daily wear, spanning diverse price points.
- Integrated Manufacturing Setup: With a robust in-house manufacturing facility spanning 13,448.86 square feet in Andheri East, Mumbai, the company manages design, production, and packaging. This ensures stringent quality control throughout the manufacturing process.
- Advanced Design Capabilities: A dedicated team of 80 Computer-Aided Design (CAD) technology designers enables the creation of over 400 unique gemstone-studded CZ gold designs every month, showcasing innovation and intricate craftsmanship.
- Strong Market Presence: The company boasts an impressive network, having expanded its operations to 15 states and one union territory by May 31, 2025. They have established long-term relationships with prominent corporate jewellery brands like Joyalukkas, Lalitha Jewellery, and Alukkas Enterprises.
- High Production Capacity: Their Mumbai facility boasts an annual production capacity of 2,700 kg, allowing for precise and efficient jewellery manufacturing.
The Golden Opportunity: Key IPO Details at a Glance
The Shanti Gold International IPO is structured as a book-built issue, aiming to raise a substantial amount from the market. Here are the essential details for prospective investors:
| Detail | Description |
|---|---|
| IPO Type | Main-board, Book Building Issue |
| Issue Size | 1,80,96,000 equity shares (aggregating up to ₹360.11 Crores) |
| Offer Type | Entirely a Fresh Issue |
| Face Value | ₹10 per share |
| Price Band | ₹189 to ₹199 per share |
| Minimum Bid Lot | 75 Shares |
| Listing At | BSE, NSE |
Your IPO Journey: Tentative Timeline
Understanding the key dates is crucial for any IPO application. Here's a tentative timeline for the Shanti Gold International IPO process:
Shining Bright: A Deep Dive into Shanti Gold International's Financial Health
A look at the company's financial performance reveals a robust growth trajectory. Shanti Gold International has demonstrated significant improvement in both revenue and profitability over the past few years.
Revenue and Profit Trends (Amounts in ₹ Crore)
| Period Ended | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
|---|---|---|---|
| Assets | 419.83 | 325.40 | 256.88 |
| Revenue | 1,112.47 | 715.04 | 682.28 |
| Profit After Tax (PAT) | 55.84 | 26.87 | 19.82 |
| EBITDA | 97.71 | 53.45 | 45.57 |
| Net Worth | 152.37 | 96.67 | 69.81 |
| Total Borrowing | 233.00 | 210.68 | 165.34 |
Notably, between the financial year ending March 31, 2024, and March 31, 2025, the company reported a remarkable 56% increase in revenue and an impressive 108% surge in Profit After Tax (PAT).
Key Performance Metrics (as of March 31, 2025)
These indicators offer further insights into the company's operational efficiency and financial standing:
- Return on Capital Employed (ROCE): 25.70%
- Debt/Equity Ratio: 1.60
- Return on Net Worth (RoNW): 44.85%
- PAT Margin: 5.05%
- EBITDA Margin: 8.83%
- Price to Book Value: 7.05
Valuation Snapshot: Pre-IPO vs. Post-IPO
| Metric | Pre-IPO | Post-IPO |
|---|---|---|
| EPS (Rs) | 10.34 | 7.75 |
| P/E (x) | 19.24 | 25.69 |
*Note: The Post-Issue EPS is calculated based on the post-issue shareholding and annualized FY earnings as of March 31, 2025.
The market capitalization of Shanti Gold International IPO is estimated at ₹1434.71 Crores at the upper end of the price band.
Demystifying Lot Sizes: Your Investment Options
Investors can bid for a minimum of 75 shares and in multiples thereafter. The following table outlines the minimum and maximum investment thresholds for various investor categories:
| Application Category | Lots | Shares | Amount (at upper price band) |
|---|---|---|---|
| Retail (Minimum) | 1 | 75 | ₹14,925 |
| Retail (Maximum) | 13 | 975 | ₹1,94,025 |
| Small HNI (Minimum) | 14 | 1,050 | ₹2,08,950 |
| Small HNI (Maximum) | 67 | 5,025 | ₹9,99,975 |
| Big HNI (Minimum) | 68 | 5,100 | ₹10,14,900 |
The Visionaries Behind the Gold: Promoters and Shareholding Structure
The company is promoted by Pankajkumar H Jagawat, Manojkumar N Jain, and Shashank Bhawarlal Jagawat. Their leadership and industry experience have been instrumental in the company's growth.
| Share Holding | Percentage |
|---|---|
| Pre-Issue Shareholding | 99.99% |
| Post-Issue Shareholding | 74.89% |
The reduction in promoter holding post-issue reflects the equity dilution necessary to raise capital through the IPO.
What's the Gold For? Decoding the IPO's Objectives
Shanti Gold International intends to utilize the net proceeds from this issue for several strategic initiatives aimed at fueling its future expansion and operational efficiency:
- Establishing a New Facility: A significant portion (₹46.30 Crores) is earmarked for capital expenditure towards setting up a proposed facility in Jaipur, indicating geographical expansion and increased production capacity.
- Bolstering Working Capital: ₹200.00 Crores will be used to fund the company's working capital requirements, essential for managing day-to-day operations, inventory, and trade receivables.
- Debt Management: ₹17.00 Crores is allocated for the repayment and/or pre-payment of certain existing borrowings, which can lead to a healthier balance sheet and reduced interest expenses.
- General Corporate Purposes: The remaining funds will be utilized for various general corporate needs, providing flexibility for future growth initiatives and operational contingencies.
Strategic Outlook: A SWOT Analysis
Understanding the internal and external factors influencing Shanti Gold International's business can provide a holistic view for potential investors.
Strengths:
- Extensive Design Range: Driven by a large team of CAD designers, offering fresh and intricate designs regularly.
- Comprehensive In-House Manufacturing: Ensures strict quality control from design to delivery, reducing reliance on external processes.
- Experienced Leadership: Promoters with proven execution capabilities in the jewellery sector.
- Sound Financial Foundation: Demonstrated consistent revenue and profit growth, indicating a stable business model.
- Strong Industry Relations: Established long-term partnerships with major corporate and retail jewellery businesses.
- Widespread Market Reach: Presence across 15 states and one union territory showcases significant geographical penetration.
Weaknesses:
- Reliance on Manual Outsourced Labour: While in-house for design and major production, certain intricate tasks like manual stone setting are outsourced, potentially impacting control or costs.
- Capital Intensive Nature: The jewellery manufacturing business requires substantial capital for inventory, machinery, and expansion.
- Brand Recognition: While having strong B2B relationships, direct consumer brand recognition might be lower compared to established retail chains.
Opportunities:
- Growing Indian Jewellery Market: India's increasing disposable income and cultural affinity for gold jewellery present a robust growth environment.
- Geographic Expansion: Further expanding into untapped cities and states within India, as evidenced by the proposed Jaipur facility.
- Product Diversification: Exploring new segments like lightweight jewellery, modern contemporary designs, or even venturing into branded retail.
- Digital Sales Channels: Leveraging e-commerce platforms to reach a wider customer base and cater to changing consumer buying habits.
Threats:
- Gold Price Volatility: Fluctuations in global gold prices can significantly impact raw material costs, profit margins, and consumer demand.
- Intense Competition: The Indian jewellery market is highly fragmented with numerous organized and unorganized players, leading to pricing pressures.
- Regulatory Changes: Any changes in import duties, taxation (like GST), or hallmarking regulations can affect business operations and profitability.
- Economic Downturns: Discretionary spending on luxury items like jewellery can decline during economic slowdowns, impacting sales.
How to Participate in the Shanti Gold International IPO
Applying for the Shanti Gold International IPO is a straightforward process for investors with a Demat and trading account. Most brokers now offer online IPO applications through UPI (Unified Payments Interface) or ASBA (Applications Supported by Blocked Amount) via net banking.
If you're using a discount broker like Zerodha, Upstox, or 5Paisa, you can typically apply directly from their trading platform or back office by linking your UPI ID. For full-service brokers like Angel One or Kotak Securities, the process is often integrated into their trading interface or net banking portal. Always ensure your UPI mandate is approved by the cut-off time on the closing date.
Key Contacts and IPO Registrar
For any direct inquiries regarding the company or the IPO, you can reach out to:
Shanti Gold International Ltd.
Plot No A-51, 2nd Floor to 7th Floor, MIDC, Marol Industrial Area, Road no.-1,
Near Tunga International Hotel, Mumbai, Maharashtra, 400093
Phone: + 91 22 4824 964
Email: cs@shantigold.in
Website: https://shantigold.in/
The official registrar for the Shanti Gold International IPO is Bigshare Services Pvt Ltd, responsible for managing the application and allotment process.
Final Thoughts: Is Shanti Gold International IPO a Sparkling Investment?
Shanti Gold International Limited presents itself as a well-established player in the Indian gold jewellery sector, backed by strong financial performance and ambitious expansion plans. The IPO aims to capitalize on the robust demand for gold jewellery in India while fortifying the company's operational capabilities.
As with any investment, it is prudent for prospective investors to conduct their own thorough due diligence, review the detailed offer documents, and consider their individual risk appetite before making an investment decision. The company's impressive growth, strategic objectives, and experienced management team certainly make this IPO one to watch closely.