Shanti Gold IPO Sees 2.44x Subscription on Day 2: GMP at ₹38, Should You Invest or Wait?

Shanti Gold IPO subscription status GMP review apply or not

The ₹360 crore Shanti Gold International IPO is witnessing growing investor interest. On Day 2 (July 26), the IPO was subscribed 2.44 times overall, with strong demand from retail and NII investors. The retail portion alone was subscribed 2.34 times, while the Non-Institutional Investors (NII) portion received 1.61x bids. The IPO will close on July 29, 2025.

The IPO is priced between ₹189 to ₹199 per share, and the grey market premium (GMP) today is ₹38, indicating a potential 19.10% listing gain.


Anchor Investment and Fund Allocation

On July 25, Shanti Gold secured over ₹108 crore from anchor investors, including big names like:

·         Societe Generale

·         Wealthwave Capital Fund

·         Rajasthan Global Securities

·         J4S Venture Fund

·         Shine Star Build Cap Pvt Ltd

The IPO consists of a fresh issue of 1.8 crore equity shares. The proceeds will be used for:

·         ₹200 crore: Working capital

·         ₹46.3 crore: Jaipur manufacturing facility

·         ₹17 crore: Debt repayment

·         Remaining: General corporate purposes


About the Company

ShantiGold International Ltd. designs and manufactures gold jewellery with an annual capacity of 2,700 kg. It serves over 15 states and 1 union territory, working with top jewellery brands like:

·         Joyalukkas

·         Lalitha Jewellery

·         Alukkas Enterprises

With offices in Mumbai, Chennai, Bengaluru, and Hyderabad, the company has built a solid distribution network.


Financial Snapshot


Metric FY24 FY25 (Estimated)
Revenue ₹711.43 crore ₹1,106.41 crore
Profit After Tax (PAT) ₹27 crore ₹56 crore
YoY Revenue Growth +55.52%

Brokerage Reviews & Ratings

Canara Bank Securities:

·         "Slightly overpriced at 7x PB vs 5x PB peers."

·         "Strong foundation and North India expansion potential."

·         Recommendation: Subscribe for Long Term

Anand Rathi Research:

·         "Well connected with top jewellery brands."

·         Verdict: Fully priced but strong fundamentals.

·         Recommendation: Subscribe – Long Term

GEPL Capital:

·         "P/E ratio at 19.2x is reasonable."

·         "Strong growth in revenue and PAT."

·         Recommendation: Subscribe

Adroit Financial Services:

·         "Debt repayment to improve cash flow."

·         "Risk: Gold price volatility may impact inventory valuation."

·         Recommendation: Subscribe for long-term with caution


Shanti Gold IPO GMP Today

Date GMP (₹) Estimated Listing Price
July 28 ₹38 ₹237 (Up 19.10%)
Range ₹0 – ₹39 Highest seen in 11 days

As per Investorgain.com, today’s GMP indicates high investor confidence and signals a potentially robust listing.


Should You Apply for Shanti Gold IPO?

Pros:

·         Strong revenue growth

·         Expansion plans in Jaipur

·         Leading B2B player in gold jewellery

·         Presence in 15+ states

·         Well-regarded anchor investors

Cons/Risks:

·         IPO slightly overpriced

·         Dependent on volatile gold prices

·         Highly competitive industry

·         High working capital needs


Investment Risk Advisory

Disclaimer: Investing in IPOs involves market risk, and returns are not guaranteed. While Shanti Gold has shown strong financials and GMP trends are positive, factors like gold price fluctuations, valuation pressure, and sector volatility must be considered.

Always consult a SEBI-registered financial advisor before investing. The above analysis is for educational purposes only.


Conclusion: Subscribe or Wait?

With robust fundamentals, trusted industry partnerships, and decent grey market sentiment, Shanti Gold International IPO appears promising for long-term investors. However, short-term traders should be cautious of pricing and sector-specific risks.


 

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