Shanti Gold International, a well-known gold jewelry manufacturer in Mumbai, has finally launched its Initial Public Offering (IPO). The issue opened on July 25th and will be available for investment until July 29th. The price band is set at ₹189 to ₹199 per share. The company has already raised ₹108 crore from anchor investors.
Company's Presence Across the Country
Headquartered in Mumbai, Shanti Gold International has established its presence in 15 states and one union territory across the country. The company has branches in major cities such as Bangalore, Chennai, Hyderabad, and Mumbai. Shanti Gold manufactures 22-carat CZ casting gold jewelry and has an annual production capacity of 2700 kg.
Significant Surge in Earnings
The company's latest business figures reflect its growing strength. In fiscal year 2024-25, Shanti Gold International's total income was ₹1106.41 crore, which is 55 percent higher than the previous year's ₹711.43 crore. Moreover, the net profit this time was ₹56 crore, which is double the previous year's ₹27 crore.
Strong Association with Major Brands
Shanti Gold International has business relationships with leading jewelry brands in the country, such as Joyalukkas, Lalitha Jewellery, and Alukkas Enterprises. This partnership has provided the company with a broad market reach and strengthened brand recognition. As a result, its customer base is continuously expanding.
Complete Details of the IPO
The company is issuing a total of 1.81 crore new shares through this IPO, aiming to raise a total of ₹360.11 crore. This is a fresh issue, and there is no offer for sale. The minimum lot size for this IPO is 75 shares, meaning an investor needs to invest at least ₹14,175.
Use of Funds Raised from the IPO
Shanti Gold International plans to use a significant portion of the funds raised from the IPO for the company's expansion and business strengthening. ₹46.3 crore will be spent on establishing a new factory in Jaipur. Furthermore, ₹200 crore will be allocated for working capital needs. In addition, ₹17 crore will be used to repay debt, and the remaining amount will be used for general corporate purposes.
IPO Management and Listing Details
The book-running lead manager for this issue is Choice Capital Advisors, while the registrar's responsibility has been assigned to Bigshare Services. The IPO allotment will be done on July 30th, and the company's shares will be listed on both the BSE and NSE on August 1st.
Confidence Gained from Anchor Investors
A day before the IPO opened, on July 24th, the company raised ₹108.03 crore through anchor investments. This included several large investors such as Societe Generale, Wealthwave Capital Fund, Vinsight Growth Fund, Smart Horizon Opportunity Fund. This clearly indicates that institutional investors have full confidence in the company's business and future prospects.
Benefit from Stability and Demand in the Gold Market
The demand for gold, especially gold jewelry, in India remains consistent year after year. The demand for gold continues to increase during festivals, weddings, and as an investment. Companies like Shanti Gold, which focus on design, purity, and trust, are able to establish a better hold in the market. For this reason, investors are seeing potential in this sector.
Company's Position in the Eyes of Brokerage Firms
According to brokerage firm Anand Rathi, Shanti Gold International's price-to-earnings ratio is 25.7 times, which can be considered relatively balanced compared to the sector average. After the IPO, the company's market capitalization is estimated to be approximately ₹1434.7 crore. Brokerage firms believe that the company's track record, customer network, and brand collaborations make it b in the competition.
Company's Focus on Modern Technology
Shanti Gold International has adopted modern technology in its production process. This not only improves the quality of production but also saves time and costs. The company plans to further strengthen its hold in the premium gold jewelry segment in the future by combining technology and design.
Company's Position in the Market
Shanti Gold International has consistently grown in the past few years. Its distribution network is strengthening across the country, and brand recognition is also increasing. Additionally, the company is reaching rural and semi-urban areas through its dealers and retail partners.
