Image Source : IPO Watch
Mumbai-based gold jewellery manufacturer Shanti Gold International Ltd is set to make its stock market debut today on both the BSE and NSE. Following a highly subscribed initial public offering and a stable grey market premium, the company is expected to list at a mild premium, reflecting cautious optimism among investors.
Key Highlights from the IPO and Listing Outlook
- IPO listing date: August 1, 2025
- Issue price: Rs 199 per share
- Grey Market Premium (GMP): Rs 34, indicating an estimated listing price of Rs 233
- Total IPO size: Rs 360.11 crore via fresh issue of 1.81 crore equity shares
- Subscription levels: 81.17 times overall
- Retail: 30.37 times
- Non-Institutional Investors (NIIs): 151.48 times
- Qualified Institutional Buyers (QIBs): 117.33 times
IPO Performance: Strong Demand Across Investor Categories
The IPO, which opened for subscription on July 25 and closed on July 29, saw overwhelming interest from all investor segments. The NII and QIB categories led the charge with subscription rates of 151.48 and 117.33 times respectively, while retail investors also showed strong participation at 30.37 times.
The allotment was finalized on July 30, and shares were credited to successful applicants on July 31. The stock will be available for trading from 10:00 AM today, as part of the Special Pre-open Session.
Grey Market Signals: Mild Yet Positive Sentiment
The GMP for Shanti Gold International stood at Rs 34 as of this morning, suggesting a listing price of Rs 233 — a 17 percent premium over the issue price. While not explosive, this premium reflects steady investor confidence and a healthy appetite for quality jewellery manufacturers in the SME space.
Market watchers note that the GMP has remained stable despite broader market volatility, indicating that the listing may be smooth and measured rather than dramatic.
Company Overview: Crafting a Niche in Gold Jewellery
Established in 2003, Shanti Gold International specializes in 22kt CZ casting gold jewellery, catering primarily to B2B clients across India. The company operates a fully integrated manufacturing facility in Andheri East, Mumbai, with an annual production capacity of 2,700 kg.
Its product portfolio includes intricately designed bangles, rings, necklaces, and bridal sets, serving clients in over 15 states and one union territory. Notable customers include Joyalukkas and Lalitha Jewellery.
Financial Snapshot and IPO Utilization
For FY25, Shanti Gold reported a 56 percent jump in revenue to Rs 1,112 crore and a 108 percent surge in net profit to Rs 56 crore. The IPO proceeds will be used to:
- Set up a new manufacturing facility in Jaipur
- Fund working capital requirements
- Reduce existing debt
This strategic expansion is aimed at boosting production capacity and enhancing market presence in northern India.
Valuation and Market Sentiment
Post-issue, the company’s valuation stands at a P/E of 25.69x, which analysts consider slightly premium given the fragmented nature of India’s gold jewellery market. However, the strong financials and operational momentum may justify the pricing in the long term.
Investors are now watching closely to see if the secondary market sustains the enthusiasm shown during the IPO bidding phase.
Conclusion: A Measured Debut with Room to Shine
Shanti Gold International’s listing today marks a significant milestone for the company and its investors. While the GMP hints at a modest listing pop, the real test will be how the stock performs in the coming weeks amid competitive pressures and evolving consumer demand.
With solid fundamentals and a clear expansion roadmap, Shanti Gold enters the public market with cautious optimism and a glimmer of gold.
Source: Economic Times
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