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Shanti Gold IPO opens: Analysts bet on strong fundamentals; should you bid?
Shanti Gold International manufactures high-quality 22kt CZ casting gold jewellery. It specialises in the design and production of all types of gold jewellery. The company offers a wide range of high-quality, intricately designed pieces, including bangles, rings, necklaces, and complete jewellery sets across various price points, ranging from jewellery for special occasions, such as weddings, to festive and daily wear jewellery. The mainline offering will close for bidding on Tuesday, July 29. The company has set the price band for the IPO in the range of ₹189 to ₹199 per share. Accordingly, investors can bid for a minimum of one lot comprising 75 shares. At the the upper end price, a retail investor would require a minimum investment amount of ₹14,925. Ahead of the IPO, the company raised ₹108.03 crore through anchor book on July 24. It allocated 5.42 million equity shares to 15 anchor investors at ₹199 per share. Societe Generale, Wealthwave Capital Fund, Vijit Growth Fund, Founders Collective Fund, Smart Horizon Opportunity Fund, Swyom India Alpha Fund, and Sunrise Investment Opportunities Fund were among key anchor investors.
Shanti Gold International IPO GMP
On Friday, the unlisted shares of Shanti Gold International were trading at ₹238 in the grey market, commanding a premium of ₹39 or 19.6 per cent compared to the upper end price of ₹199.
Shanti Gold International IPO: Should you apply?
Anand Rathi Research - Subscribe for long term
According to analysts at Anand Rathi Research, the company benefits from its fully integrated in-house manufacturing, strong CAD-led design capabilities, and a wide product portfolio tailored to client preferences. In addition, the company is backed by consistent growth in customer base, operational scale, and geographic expansion, particularly into North India and overseas markets.
The company is scaling capacity to 3,900 kg with a new Jaipur unit and launching a new plain gold jewellery line for the bridal segment. It is also targeting exports via trade shows in the USA and the UAE.
"At the upper price band, the company is valued at a FY25 P/E of 25.7x, with a post-issue market capitalisation of ₹1434.7 crore. It has established strong ties with prominent jewellery brands like Joyalukkas, Lalitha Jewellery, and Alukkas Enterprises, and operates across 15 states and 1 union territory," the brokerage said.
Citing the above strengths, Anand Rathi believes the IPO is fully priced and assigned a 'Subscribe for long term' rating.
Arihant Capital - Subscribe
Analysts at Arihant Capital Markets believe that the overall outlook for Shanti Gold International is positive, driven by strong financial performance, evidenced by a high Return on Net Worth (RoNW) of 44.85 per cent and consistent earnings growth, with an EPS of 10.34 for fiscal 2024-25.
"The company's fully integrated, in-house manufacturing setup ensures high-quality production, while its growing presence across 15 states and solid relationships with key jewellery brands suggest strong expansion potential. Compared to industry peers, Shanti Gold's financial metrics stand out, positioning it well for future growth," the brokerage said.
Arihant Capital also highlighted some risks, such as reliance on outsourced labour and market volatility in gold prices, remain factors to monitor. At the upper band of ₹199, the issue is valued at a P/E ratio of 25.69x, based on a FY25 EPS of ₹7.7. Arihant Capital recommended subscribing to the issue.
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