IPO closes on 29 Jul'25
Shanti Gold International Ltd
Minimum Investment
₹ 14,925 / 75 shares
Grey market premium
₹ 39 (20% premium)
Our Verdict:
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- Shanti Gold International Ltd (SGIL) has demonstrated strong revenue and earnings growth over the past three years, supported by robust return metrics and expanding margins.
- From a valuation perspective, the IPO seems reasonably priced at a PE multiple of 19x, given the company’s robust growth trajectory. Furthermore, the grey market premium (GMP) suggests potential positive listing gains.
- Considering these factors, investors may look to subscribe to the IPO from a medium-to-long term perspective.
About the company
Founded in
5 Aug'03
Managing director
Pankajkumar Jagawat
- SGIL is a leading manufacturer of high-quality 22kt CZ casting gold jewellery, specializing in the design and production of a wide range of pieces, including bangles, rings, necklaces and complete jewellery sets. Their offerings cover special occasions like weddings as well as festive and daily wear.
- Currently, SGIL operates a manufacturing facility in Mumbai with an annual production capacity of 2,700 kg. It produces jewellery for renowned corporate brands, including Joyalukkas India, Lalithaa Jewellery Mart, Alukkas Enterprises, Vysyaraju Jewellers and Shree Kalptaru Jewellers. The upcoming Jaipur expansion will increase their capacity by 1,200 kg, bringing the total to 3,900 kg per year.
STRENGTHS
- Solid Financial Performance: SGIL has demonstrated robust financial performance, achieving a 28% CAGR in operating revenue, 46% in EBITDA and 68% in net profit between FY23 and FY25.
- Impressive Return Metrics: With a Return on Net Worth (RoNW) of 44.85% and a Return on Capital Employed (RoCE) of 25.7% as of FY25, SGIL outperforms its listed peers, highlighting strong operational efficiency.
- Expanding Margins: SGIL has consistently improved its margin profile, reporting an EBITDA margin of 8.83% and a net profit margin of 5.05% in FY25.
- Wide Network: SGIL serves customers across 15 states and 2 union territories in India, and internationally in the UAE, USA, Singapore, and Qatar. Key operational hubs include Mumbai, Bangalore, Chennai and Hyderabad, supported by branches in Tamil Nadu, Andhra Pradesh, Karnataka, Telangana, Gujarat and Madhya Pradesh.
RISK FACTORS
- Client Concentration: Approximately 23% of SGIL's revenue in FY25 is derived from its top five customers. A decline in business from these key customers could negatively impact ABL’s operations and financial performance.
- Geographic Concentration: A large portion of SGIL’s revenue, 72.76% in FY25, is concentrated in Southern India. This geographic concentration exposes the company to regional economic, cultural, geopolitical and market risks.
- Negative Cash Flows: SGIL has faced negative cash flow from operations for the past three fiscal years. Continued negative cash flows could jeopardize business continuity and financial stability.
- High Debt Levels: As of May 31, 2025, SGIL's outstanding borrowings totalled Rs 241.98 crore. The conditions and restrictions linked to its debt agreements may limit its operational flexibility and affect business performance.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 360.11 crore
Fresh Issue
₹ 360.11 crore
OFS
₹ -
Price range
₹ 189 - 199
Lot size
75 shares
Issue Objective
The net proceeds from the fresh issue will be utilised towards:
- Financing capital expenditures for the establishment of the proposed Jaipur facility;
- Supporting the working capital needs of the company;
- Repaying and/or prepaying, in whole or in part, certain outstanding borrowings; and
- General corporate purposes.
Dates
Bidding open
25 Jul'25
Bidding close
29 Jul'25
Allotment date
30 Jul'25
Refund date
31 Jul'25
Listing
1 Aug'25
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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