Shanti Gold International IPO Lists at 15.13% Premium, Backed by Strong Investor Demand

The gold jewellery manufacturer, Shanti Gold International Limited, made a positive debut on the BSE and NSE on August 1, 2025. After closing its IPO bidding between July 25 - July 29, 2025, the company commenced trading with a 15.13% premium on BSE and 14.35% on NSE, delivering solid returns to investors backed by strong subscription response in the jewellery manufacturing sector.

Shanti Gold International Listing Details

Shanti Gold International Limited launched its IPO at ₹199 per share with minimum investment of 75 shares costing ₹14,925. The IPO received exceptional response with subscription of 80.78 times - NII segment leading at remarkable 151.17 times, QIB at 117.33 times, whilst retail participation remained strong at 29.73 times, reflecting strong institutional and HNI confidence in jewellery manufacturing business.

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First-Day Trading Performance Outlook

Listing Price: The Shanti Gold International share price opened at ₹229.10 on BSE and ₹227.55 on NSE, representing premiums of 15.13% and 14.35% respectively from the issue price of ₹199, delivering solid gains of approximately ₹2,258 per lot for allotted investors. Shanti Gold International delivered a positive debut performance with a solid premium reflecting investor confidence in established jewellery manufacturing companies with strong corporate relationships.

Growth Drivers and Challenges

Growth Drivers:

Established Corporate Relationships: Long-term partnerships with major jewellery brands including Joyalukkas, Lalitha Jewellery, Alukkas Enterprises, and Vysyaraju Jewellers providing revenue stability.

Comprehensive Manufacturing Capabilities: Complete in-house setup from design to packaging with advanced CAD technology and 2,700 kg annual production capacity.

Strong Design Innovation: Team of 80 CAD designers creating over 400 new designs monthly ensuring product differentiation and market relevance.

Impressive Financial Performance: Revenue growth of 56% and exceptional PAT growth of 108% in FY25 with strong RoNW of 44.85% demonstrating operational excellence.

Challenges:

High Debt Burden: Debt-to-equity ratio of 1.60 with borrowings of ₹233 crore requiring careful financial management in a volatilein volatile gold price environment.

Competitive Market Dynamics: Operating in a highlyin highly competitive and fragmented jewellery manufacturing sector with pricing pressures from established players.

Gold Price Volatility: Business vulnerable to gold price fluctuations affecting raw material costs and working capital requirements.

Moderate Profit Margins: PAT margin of 5.05% and EBITDA margin of 8.83% indicating tight operational margins requiring efficiency improvements.

Utilisation of IPO Proceeds

Jaipur Facility Setup: ₹46.30 crore for capital expenditure towards establishing new manufacturing facility expanding production capacity and geographic reach 

Working Capital Requirements: ₹200.00 crore for funding operational needs supporting business expansion and inventory management 

Debt Repayment: ₹17.00 crore for repayment of borrowings improving capital structure and reducing financial leverage 

General Corporate Purposes: Remaining funds for strategic initiatives and operational requirements

Financial Performance of Shanti Gold International

Revenue: ₹1,112.47 crore for FY25, showing impressive 56% growth from ₹715.04 crore in FY24, reflecting strong demand for manufactured jewellery and successful client expansion.

Net Profit:  ₹55.84 crore in FY25, demonstrating exceptional 108% growth from ₹26.87 crore in FY24, with remarkable profitability improvement through operational scale and efficiency.

Financial Metrics: Strong ROCE of 25.70%, high debt-to-equity of 1.60, impressive RoNW of 44.85%, modest PAT margin of 5.05%, EBITDA margin of 8.83%, and market capitalisation of ₹1,434.71 crore.

Shanti Gold International represents a solid investment opportunity in the jewellery manufacturing sector with positive listing performance delivering 15.13% premium backed by strong subscription response of 80.78 times.