Shanti Gold International IPO booked nearly 4x on day 2 so far;  GMP holds ground

The initial public offering (IPO) of Shanti Gold International continued to see a decent response during the second day of the bidding process from all the categories of the investors. The issue, which kicked off on Friday, July 25, sailed through on day one and was booked more than 1.1 times.

Mumbai-based Shanti Gold International is selling its shares in the price band of Rs 189-199 apiece. Investors can apply for a minimum of 75 shares and its multiples thereafter. It is looking to raise Rs 360.11 crore via IPO, which is entirely a fresh share sale of 1,80,96,000 equity shares.

According to the data, the investors made bids for 4,75,71,900 equity shares, or 3.76 times, compared to the 1,26,67,200 equity shares offered for the subscription by 2.45 pm on Monday, July 28, 2025. The three day bidding for the issue shall conclude on Tuesday, July 29.

The allocation for retail investors was subscribed 5.40 times, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 4.87 times. However, the quota set aside for qualified institutional bidders (QIBs) saw bids for only four per cent as of the same time.

Incorporated in 2003, Mumbai-based Shanti Gold International is engaged in the business of manufacturing gold jewellery. It manufactures high-quality 22kt CZ casting gold jewellery, specialising in design and production. It offers a wide range of high-quality, intricately designed jewelry.

The grey market premium (GMP) of Shanti Gold International has remained stable amid the rising volatility, thanks to a strong bidding for the issue. Last heard, the company was commanding a premium of Rs 36-38 per share in the unofficial market, suggesting 18-19 per cent listing gains for the investors. The GMP stood around Rs 39-40, when the price band was announced.

Analysts mostly have a mixed view on this IPO. They suggest subscribing to this citing its strong clientele, experience promoters, financial track record, proven leadership in the South India market, reasonable valuations and growth visibility through exports. However, no long-term contracts, commodity biased business and negative cash flow are the major concerns for the issue.

Shanti Gold International operates into a B2B business model, offering a diverse portfolio across multiple price points. It has a greater presence in the South Indian market. However, it is planning to expand its business in the North Indian market as well and is setting up a manufacturing facility in Jaipur, said GEPL Capital.

"The issue is priced at a P/E ratio of 19.2 times. We believe that the company is fairly valued compared to its peers, strategically expanding its geographic presence, and has healthy revenue and PAT growth. Therefore, we recommend a 'subscribe' rating for the issue," it added.

Shanti Gold International reported a net profit of Rs 55.84 crore with a revenue of Rs 1,112.47 crore for the financial year ended on March 31, 2025. The company clocked a net profit of Rs 26.87 crore with a revenue of Rs 715.04 crore for the year 2023-24. The company shall command a market capitalization close to Rs 1,435 crore.

The repayment of loan will allow the business to have more cash in hand in the long term, adding fuel to the foundation of the business to capture the growing market and act on the opportunities. Fluctuating gold prices are the major concern for it, said Adroit Financial Services. It has suggested to 'subscribe' it for long-term investment, and considering its valuation and growth potential.

Shanti Gold International has reserved 50 per cent of the net issues for qualified institutional bidders (QIBs), while non-institutional investors will have 15 per cent of the allocation. Retail investors will get 35 per cent of the issue. The company was commanding a grey market premium of Rs 40 apiece, suggesting a 20 per cent listing pop for the investors.

Choice Capital Advisors is the sole book-running lead manager of the Shanti Gold International IPO, while Bigshare Services is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE, with Friday, August 1 as the tentative date of listing.