Shanti Gold International IPO Listing Performance 2025: A Comprehensive Analysis

Shanti Gold International Ltd, a leading Mumbai-based manufacturer of 22kt CZ casting gold jewellery, made a robust debut on the Indian stock exchanges on August 1, 2025, listing at a 14.35-15.13% premium over its IPO price. Despite falling slightly short of grey market expectations, the strong subscription and positive listing reflect investor confidence in the company’s growth trajectory. This blog provides a detailed analysis of Shanti Gold International’s IPO listing performance, subscription details, financials, peer comparison, and investment insights for both new and seasoned investors.

IPO Background and Subscription Details

Shanti Gold International’s ₹360.11 crore IPO opened for subscription from July 25 to July 29, 2025, with a price band of ₹189–₹199 per share and a minimum lot size of 75 shares (₹14,925 for retail investors). The IPO was a fresh issue of 1.81 crore equity shares with no offer-for-sale component, aimed at funding a new manufacturing facility, working capital, debt repayment, and general corporate purposes. The issue was subscribed 80.78 times, receiving bids for over 146.39 crore shares against the 1.81 crore shares offered.

Subscription Breakdown:

• Non-Institutional Investors (NII): 151.17 times (bNII: 173.08x, sNII: 107.35x)
• Qualified Institutional Buyers (QIB): 117.33 times
• Retail Individual Investors (RII): 29.73 times
• Anchor Investors: ₹108.03 crore raised from 15 anchor investors, including Societe Generale and Meru Investment Fund, allotting 54.28 lakh shares at ₹199 each on July 24, 2025.

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Listing Performance: A Strong Market Debut

Opening Prices and Initial Performance

Shanti Gold International shares debuted at a solid premium on both exchanges, reflecting strong investor interest:

• NSE Opening: ₹227.55 (14.35% premium over ₹199 issue price)
• BSE Opening: ₹229.10 (15.13% premium over ₹199 issue price)
• Grey Market Premium (GMP): ₹34–₹39, signaling an expected listing range of ₹233–₹238 (17–19.6% premium), though actual listing was slightly below these expectations.

Intraday Trading and Closing Performance

The stock exhibited strong momentum during the trading session:

• Intraday High: ₹238.36 (NSE) and ₹238.40 (BSE), a 19.70% gain over the issue price
• Intraday Low: ₹227.10 on both exchanges
• Closing Price: ₹229.38 (NSE) and ₹229.20 (BSE), reflecting a 15.20–15.27% premium over the issue price
• Trading Volume: Approximately 2.3 crore shares traded on NSE, valued at ₹410.22 crore
• Volume Weighted Average Price (VWAP): ₹231.28
• Deliverable Volume: Not explicitly reported, but high trading volume indicates strong market participation.

Profit per Lot:

• At opening: ₹2,141 (NSE) to ₹2,258 (BSE) per lot of 75 shares.
• At intraday high: Up to ₹2,955 per lot.

Market Capitalization: ₹1,652–1,679.84 crore on listing day, reflecting a robust market valuation.

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Company Overview and Business Profile

Founded in 2003 and headquartered in Mumbai, Shanti Gold International is a leading B2B manufacturer of 22kt CZ casting gold jewellery, recognized for its substantial production capacity of 2,700 kg per annum. The company operates a fully integrated in-house facility in Andheri East, Mumbai, spanning 13,448.86 sq ft, equipped with advanced CAD technology and supported by 80 designers creating over 400 new designs monthly. It serves 455 customers across 15 states and 1 union territory in India, including marquee clients like Joyalukkas, Lalithaa Jewellery, and Vysyaraju Jewellers, with limited exports to the USA and UAE.

Key Offerings:

• Intricately designed bangles, rings, necklaces, earrings, and bridal sets for weddings, festivals, and daily wear.
• Strong focus on quality control through in-house design, manufacturing, and packaging, with outsourced stone-setting to skilled artisans.

Financial Performance

Shanti Gold International reported exceptional financial growth in FY25:

Metric	FY24	FY25	Change
Revenue (₹ Cr)	711.43	1,106.41	+55.52%
Net Profit (₹ Cr)	26.87	55.84	+107.8%
EBITDA (₹ Cr)	50.00	92.00	+84%
EBITDA Margin (%)	7.51	8.83	+1.32%
PAT Margin (%)	3.78	5.05	+1.27%
Debt/Equity Ratio	Not Reported	1.53	–
ROE (%)	Not Reported	36.65	–
ROCE (%)	Not Reported	25.70	–

• Revenue Growth: 55.52% increase, driven by strong B2B demand and design innovation.
• Profit Surge: 107.8% PAT growth reflects improved operational efficiency.
• Valuation Metrics: P/E ratio of 19.2x (based on FY25 earnings), considered reasonable compared to peers’ average of 23x, though P/B ratio of 7x is slightly higher than peers’ 5x.

Use of IPO Proceeds

The IPO proceeds of ₹360.11 crore are allocated as follows:

• ₹46.3 crore: Capital expenditure for a new manufacturing facility in Jaipur, expected to commence operations by Q3 FY26.
• ₹200 crore: Working capital requirements to support raw material procurement and operational scaling.
• ₹17 crore: Repayment or prepayment of borrowings (total debt: ₹241.98 crore as of May 2025).
• Remaining Funds: General corporate purposes to support strategic growth initiatives.

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Peer Comparison

Shanti Gold International is compared with listed peers in the jewellery sector, such as Senco Gold, PN Gadgil Jewellers, and PC Jeweller, based on FY24 data (FY25 peer data unavailable):

Company	Revenue (₹ Cr)	PAT (₹ Cr)	EBITDA Margin (%)	P/E Ratio	ROE (%)	Debt/Equity
Shanti Gold International	1,106.41	55.84	8.83	19.20	36.65	1.53
Senco Gold	4,097.40	181.01	7.91	25.10	15.20	0.78
PN Gadgil Jewellers	4,565.00	155.00	8.20	22.50	18.30	0.90
PC Jeweller	1,340.20	-97.30	4.50	–	-5.10	1.20

Observations:

• Revenue: Shanti Gold’s ₹1,106.41 crore is smaller than Senco Gold and PN Gadgil but comparable to PC Jeweller, reflecting its focused B2B model.
• Profitability: Shanti Gold’s 8.83% EBITDA margin is competitive, surpassing Senco Gold (7.91%) and PC Jeweller (4.50%).
• Valuation: P/E ratio of 19.2x is lower than Senco Gold (25.1x) and PN Gadgil (22.5x), indicating reasonable pricing. However, P/B ratio of 7x is higher than peers’ 5x average.
• Debt: Debt/equity ratio of 1.53 is higher than Senco Gold (0.78) and PN Gadgil (0.90), posing a financial risk.
• ROE: Shanti Gold’s 36.65% ROE significantly outperforms peers, reflecting strong capital efficiency.

Industry and Market Opportunity

The Indian jewellery market is poised for significant growth:

• Market Size: Valued at ₹4,653 billion in CY24, projected to reach ₹7,162 billion by CY29 at a 9.7% CAGR.
• Domestic Demand: Gold demand rose to 289 tonnes in H1 CY24 from 281 tonnes in H1 CY23.
• Formalization Trend: Increasing shift toward organized players, benefiting companies like Shanti Gold with established B2B relationships.
• Global Reach: Shanti Gold’s limited exports to the USA and UAE, with plans for expansion via trade exhibitions, align with the global jewellery market’s growth to USD 257 billion by 2028.

Factors Contributing to Strong Listing

1. Robust Subscription: 80.78x oversubscription, driven by NII (151.17x) and QIB (117.33x) demand, signaled strong investor confidence.
2. Positive GMP: GMP of ₹34–₹39 indicated a 17–19.6% listing premium, aligning with market expectations.
3. Financial Growth: 55.52% revenue growth and 107.8% PAT growth in FY25 showcased strong fundamentals.
4. Sector Tailwinds: Growing demand for gold jewellery and formalization of the Indian market supported investor optimism.
5. Anchor Backing: ₹108.03 crore raised from reputed anchor investors like Societe Generale enhanced credibility.

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Investment Strengths

1. Strong Financials: 27.6% revenue CAGR (FY23–FY25) and 68% PAT CAGR demonstrate consistent growth.
2. Manufacturing Excellence: Integrated 2,700 kg capacity facility with 400+ monthly designs ensures product differentiation.
3. Client Base: Long-term partnerships with major jewellery chains like Joyalukkas and Lalithaa Jewellery provide revenue stability.
4. Expansion Plans: New Jaipur facility to boost capacity by Q3 FY26, reducing reliance on Mumbai unit.
5. Market Positioning: Well-placed to capitalize on India’s growing middle-class demand and formalization trends.

Risk Factors

1. High Debt: Debt/equity ratio of 1.53 and total borrowings of ₹241.98 crore pose financial risks, despite planned ₹17 crore repayment.
2. Customer Concentration: Top 10 customers account for 34.5% of revenue, creating dependency risks.
3. Geographic Concentration: 72.8% of FY25 revenue from Southern India, exposing the company to regional risks.
4. Single Facility Risk: Dependence on Mumbai facility until Jaipur unit is operational.
5. Gold Price Volatility: Exposure to raw material price fluctuations could impact margins.
6. Negative Cash Flows: Persistent negative operating cash flows for three years indicate working capital challenges.

Investment Recommendation

For Conservative Investors: BOOK PROFITS

• Rationale: The 14.35–15.13% listing premium delivered solid returns, but the P/B ratio of 7x (vs. peers’ 5x) and high debt/equity ratio of 1.53 suggest limited short-term upside. Negative cash flows and customer concentration add caution.
• Strategy: Exit at current levels (~₹229–₹230) to lock in gains, or hold until ₹235–₹240 for marginal upside, monitoring debt reduction progress.

For Growth-Oriented Investors: HOLD/ACCUMULATE

• Rationale: Shanti Gold’s 55.52% revenue growth, 107.8% PAT growth, and 36.65% ROE highlight strong fundamentals. The Jaipur facility and growing jewellery market (9.7% CAGR) offer long-term potential, despite near-term risks.
• Strategy: Hold for 1–2 years targeting ₹260–₹280, or accumulate on dips below ₹220, focusing on capacity expansion and financial improvements.

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Post-Listing Outlook

Growth Catalysts:

• Capacity Expansion: Jaipur facility to enhance production capacity by Q3 FY26.
• Debt Reduction: ₹17 crore repayment to improve financial health.
• Market Growth: 9.7% CAGR in the Indian jewellery market and increasing formalization trends.
• Global Expansion: Plans to scale exports to the USA and UAE via trade exhibitions.

Monitoring Points:

• Progress on Jaipur facility and its impact on production capacity.
• Debt repayment execution and reduction in debt/equity ratio.
• Improvement in operating cash flows and PAT margins.
• Diversification of customer and geographic revenue base.

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Conclusion

Shanti Gold International’s IPO listing on August 1, 2025, delivered a 14.35–15.13% premium, reflecting strong investor confidence backed by an 80.78x subscription and robust financial growth (55.52% revenue, 107.8% PAT). While the listing fell slightly below GMP expectations (₹233–₹238), the company’s integrated manufacturing, marquee client base, and expansion plans position it well in India’s growing jewellery market. However, high debt, customer concentration, and single-facility risks warrant caution. Conservative investors may book profits near ₹230, while growth-oriented investors should hold or accumulate on dips below ₹220 for a 1–2-year horizon, targeting ₹260–₹280 as fundamentals strengthen.

FAQs (Frequently Asked Questions)

1. What was the listing performance of Shanti Gold International IPO?
The stock listed at ₹227.55 on NSE (14.35% premium) and ₹229.10 on BSE (15.13% premium) on August 1, 2025, closing at ~₹229.20–₹229.38.

2. How was the Shanti Gold International IPO subscribed?
The IPO was subscribed 80.78 times, with NII at 151.17x, QIB at 117.33x, and retail at 29.73x.

3. How does Shanti Gold International compare to its peers?
Shanti Gold’s P/E ratio of 19.2x is lower than Senco Gold (25.1x) and PN Gadgil (22.5x), but its P/B ratio of 7x is higher than peers’ 5x average.

4. What are the key risks of investing in Shanti Gold International?
Risks include high debt (1.53 debt/equity), customer concentration (34.5% revenue from top 10 clients), single-facility dependence, and gold price volatility.

5. How can I check Shanti Gold International IPO allotment status?
Visit BSE, NSE, or Bigshare Services websites with your PAN, application number, or DP/Client ID to check status.

Disclaimer :- The information provided in this blog is for informational purposes only and should not be considered as financial or investment advice. Investing in IPOs and stocks involves significant risks, including the potential loss of principal. Past performance is not indicative of future results. Investors are advised to conduct their own research, consult with a qualified financial advisor, and review the company’s official prospectus and financial statements before making any investment decisions. The author and publisher are not responsible for any financial losses or damages resulting from decisions based on this analysis. All data is sourced from publicly available information as of August 1, 2025, and is subject to change.