Shanti Gold International IPO — Should You Subscribe Or Not? Read Anand Rathi's Report

Shanti Gold International Ltd.'s Rs 360.1-crore IPO will open for bidding on July 25 and closes on July 29. The manufacturer of casting gold jewelry has fixed the price band in the range of Rs 189-199.

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Anand Rathi Report

Shanti Gold International Ltd.'s initial public offering will open for bidding on July 25 and closes on July 29. The manufacturer of casting gold jewelry has fixed the price band in the range of Rs 189-199.

The Rs 360.1-crore IPO comprises only of fresh issue of 181 lakh shares with no component of offer-for-sale. The face value of each share is Rs 10.

Investors can place bids starting from a minimum of 75 shares and in multiples thereafter.

Choice Capital Advisors Private Ltd. is the book-running lead managers for the public issue.

Objects of the Issue:

1. Funding of capital expenditure requirements towards setting up of the Proposed Jaipur Facility.

2. Funding working capital requirements of the company.

3. Repayment and/or pre-payment, in full or part, of certain borrowings availed by the Company.

4. General corporate purposes.

Valuation & Outlook:

Shanti Gold International is a leading manufacturer of 22kt CZ casting gold jewellery with a strong B2B model, catering to major corporate jewellery brands and wholesale buyers across India and select international markets.

The company is into making various products such as bangles, rings, necklaces, and bridal sets. The company benefits from its fully integrated in-house manufacturing, strong CAD-led design capabilities, and a wide product portfolio tailored to client preferences.

It is further backed by consistent growth in customer base, operational scale, and geographic expansion, particularly into North India and overseas markets. As part of its forward strategy, the company is expanding its installed capacity from 2,700 kg to 3,900 kg by setting up a new facility in Jaipur and launching a new line of machine-made plain gold jewellery, which caters to 85% of the bridal demand segment.

It is also targeting export market growth via trade exhibitions in the USA and UAE to enhance global visibility and forge new distribution partnerships.

At the upper price band, the company is valued at a FY25 P/E of 25.7x, with a post-issue market capitalization of Rs 143.47-crore. It has established strong ties with prominent jewelry brands like Joyalukkas, Lalitha Jewellery, and Alukkas Enterprises, and operates across 15 states and 1 union territory, with branch offices in major cities including Mumbai, Bengaluru, Chennai, and Hyderabad.

Given these strengths, the IPO appears fully priced, and a “Subscribe – Long-Term” recommendation is advised.

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