Shanti Gold International’s ₹360‑crore IPO (₹189–199 price band) opened on July 25. With ₹30 grey market premium, listing could touch ₹229 (~15% gain). Analyze subscription, fundamentals, GMP trends, and investment outlook.
📈 IPO Snapshot & Financial Health
Shanti Gold International, a Mumbai‑based manufacturer of 22 kt CZ casting gold jewellery, aims to raise ₹360.11 crore entirely via fresh issue (turn0search4, turn0search8).
IPO Details:
- Price Band: ₹189–₹199/share
- Issue Size: ₹360.11 cr (≈ 1.81 crore shares; all fresh issue)
- Lot Size (Retail): 75 shares (~₹14,925 at upper band) (turn0search9, turn0search11)
- Subscription Window: July 25–29, 2025; anchor round on July 24 (turn0search8, turn0search7)
Financials – FY25:
- Revenue: ₹1,106.4 cr, up ~55.5% YoY
- Profit after Tax: ₹55.8 cr, up 108% from FY24
- EBITDA: ₹97.7 cr, margin ~8.8% (up from 7.5%) (turn0search1, turn0search5)
Company plans to use proceeds for a new manufacturing facility in Jaipur (₹46.3 cr), working capital (₹200 cr), debt repayment (~₹17 cr), and general corporate purposes (turn0search3, turn0search6).
💰 Current GMP & Implications
- Grey Market Premium (GMP): ~₹30 as of July 24–25
- Estimated Listing Price: ₹199 + ₹30 = ₹229/share (~15% listing gain) (turn0search6)
- GMP Trend: Stable at ₹30 from July 21–24, indicating steady sentiment.
What this means: A ₹30 GMP shows moderate excitement. A larger heightening would be expected if subscription was hotter or fundamentals offered higher visibility.
🌟 Anchor & Subscription Insights
- Anchor Allocation: Raised ₹108 cr, allocating 54.28 lakh shares at ₹199/share to prominent funds like SocGen, Wealthwave, Rajasthan Global, etc. (turn0search0, turn0search7)
- Subscription Status (early days): Subscriptions appear normal; none of the financial news till date reflects oversubscription frenzy.
✅ Positives & ⚠️ Risks
✅ Strengths:
- Strong revenue & profit growth (55% and 108% YoY)
- Capacity expansion (Jaipur facility)
- Stable B2B clientele (clients like Alukkas, LLL, etc.)
- Anchor demand signals institutional comfort (turn0search5, turn0search0)
⚠ Risks:
- Volatile gold prices may squeeze margins
- Limited GMP upside thus far (~₹30 only)
- Client concentration risk and stiff industry competition
- Grey market static may suggest tempered listing appetite (turn0search6, turn0search3)
🙋 FAQs
Q1: What is Shanti Gold’s GMP currently?
Around ₹30 as of July 24–25, indicating estimated listing at ₹229 (₹199 + ₹30). (turn0search6)
Q2: What is the expected listing date?
Shares likely to debut on August 1, 2025, with allotment by July 30. (turn0search8, turn0search11)
Q3: Does high GMP guarantee listing gains?
No. GMP is speculative and unregulated. It shows sentiment, not certainty. Always weigh financials. (turn0reddit19, turn0reddit20)
Q4: Should I apply for this IPO?
If you’re targeting short-term listing gains, ₹30 GMP (~15%) may offer modest upside after costs. For long-term investors, growth path and client relationships make it worth evaluating further.
📝 Final Verdict
Shanti Gold’s IPO shows steady demand, healthy growth, and institutional backing. Yet, the ₹30 GMP reflects cautious sentiment—good but not explosive. If you’re eyeing quick 15% bounce, it may be worth a punt. However, long-term investors should focus more on fundamentals: revenue growth, capacity expansion, and financial health rather than just GMP buzz.
⚠️ Disclaimer
This blog is for informational purposes only and does not constitute financial advice. GMP is speculative and may change daily. Consult a SEBI‑registered advisor before investing.
