By Chaitanya, BBA Finance Graduate & 6+ Years of Experience in Stock market & Finance

Shanti Gold International Ltd., a prominent name in India’s gold jewellery manufacturing sector, has successfully made its stock market debut, with its shares listing on August 1, 2025. The company’s initial public offering (IPO) saw an overwhelming response from investors, signaling strong confidence in its growth trajectory within the competitive gold jewellery market. The shares commenced trading at a premium over their issue price, indicating a positive start for the company on both the BSE and NSE.

A Stellar IPO Performance

The IPO of Shanti Gold International, which was entirely a fresh issue of Rs 360.1 crore, garnered significant attention. Priced in a band of Rs 189 to Rs 199 per share, the offering was subscribed more than 80 times overall. Institutional buyers (QIBs) showed immense interest, subscribing 117.33 times, while high net-worth individuals (HNIs) bid for 151.17 times their allotted portion. Retail investors also participated enthusiastically, with their portion subscribed 29.73 times. The company successfully raised Rs 108.03 crore from 15 anchor investors, including notable names like Societe Generale and Wealthwave Capital Fund, ahead of its public offering.

Upon listing, the stock opened at Rs 229.10 on the BSE and Rs 227.55 on the NSE, marking a listing premium of approximately 14-15% over the IPO price. This was slightly below the grey market premium (GMP) of Rs 34 per share, which had suggested an expected premium of around 17% prior to listing. As of August 1, 2025, the share price of Shanti Gold International was approximately Rs 228.00, slightly above its previous close of Rs 199.00 (which was the IPO’s upper band). The stock touched a 52-week high of Rs 238.36 and a low of Rs 199.00.

The market capitalization for Shanti Gold International stood at Rs 1,654 crore, with a significant trading volume of 22,998,671 shares, amounting to a value traded of Rs 52,754.35 lakhs. The Volume Weighted Average Price (VWAP) was recorded at Rs 231.05. The company’s face value per share is Rs 10.00. While the exact Price-Earnings (P/E) ratio was not available post-listing, a post-IPO P/E of 25.69x has been reported, which analysts suggest is a premium compared to the broader sector P/E of 70.36, considering the fragmented nature of the gold jewellery market.

Strong Financial Foundations and Strategic Expansion

Shanti Gold International has demonstrated robust financial growth leading up to its IPO. The company’s revenue from operations saw a significant jump, reflecting a strong compound annual growth rate (CAGR) of 28% from FY23 to FY25. Financial highlights for the last three fiscal years are as follows (figures in ₹ million):

Specifically, for FY25, the company reported a remarkable 55.5% increase in revenue, reaching Rs 1,106.41 crore, and its profit after tax more than doubled to Rs 56 crore from Rs 27 crore in FY24. This strong performance, as detailed in company financial reports, highlights the company’s operational efficiency and expanding market presence. The debt-to-equity ratio has also shown an improving trend, decreasing from 2.37x in FY23 to 1.60x in FY25. Net cash outflow in FY25 stood at -0.91 million ₹, compared to positive inflows in previous years, reflecting strategic investments.

A significant portion of the IPO proceeds is earmarked for strategic expansion and strengthening the company’s financial position:

• Rs 46.3 crore will fund a new manufacturing facility in Jaipur, aimed at expanding its annual installed capacity of 2,700 kg.
• Rs 200 crore is allocated for working capital needs, ensuring smooth operations.
• Rs 17 crore will be used for debt repayment, further improving the balance sheet.
• The remaining funds will be utilised for general corporate purposes.

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Market Presence and Future Outlook for Shanti Gold International

Shanti Gold International primarily serves B2B clients, including renowned names like Joyalukkas and Lalitha Jewellery. Its operations span over 15 states and one union territory across India, demonstrating a wide geographical reach. The company’s product portfolio is diverse, focusing on 22Kt CZ gold jewellery, catering to bridal, festive, and daily wear segments. With a dedicated team of 79 CAD designers, Shanti Gold International boasts an impressive capability of generating over 400 new designs monthly, keeping pace with evolving market trends.

The latest update on promoter holdings shows a decrease from 100% to 74.89% in Q2 2025, which is typical for post-IPO scenarios as shares are diluted to public investors. Investors will be closely watching the company’s ability to execute its expansion plans and maintain its profit margins in a highly competitive market. As per market analysts, while the IPO was priced at a premium, the strong subscription numbers and initial listing gains reflect optimism. The long-term performance of Shanti Gold International will depend on its capacity expansion, operational efficiency, and ability to grow its B2B client base.

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