Shanti Gold International IPO (Price band ₹189–199) saw >3× subscription by Day 2, led by retail. Grey market premium stands at ₹38 (~19% listing gain). Should you subscribe? Read full review, GMP trends, key strengths & risks.
🚀 IPO Overview & GMP Highlight
- IPO Price Band: ₹189–₹199 per share
- Issue Size: ₹360.11 crore via fresh issue of ~1.81 crore shares (no OFS) Moneycontrol+6Goodreturns+6mint+6The Economic Times+13Zerodha+13The Economic Times+13The Economic Times+7mint+7The Economic Times+7
- Anchor Investment: ₹108 crore from marquee investors including Societe Generale, Wealthwave, Rajasthan Global Securities, Meru Investment Fund, and others The Economic Times+2mint+2Goodreturns+2
- Subscription Status (as of Day 2):
- Overall ~3.10× subscription
- Retail portion ~4.57×
- NII ~3.77×
- QIB very low (~0.02×) The Economic Times+8Business Standard+8mint+8
- Grey Market Premium (GMP): ₹38 per share (≈19% upside over ₹199) Wikipedia+15Business Today+15The Economic Times+15
📊 GMP & Listing Expectation
With price band capped at ₹199/share and GMP at ₹38, estimated listing price = ₹237/share → implying ~19% listing gain. That’s healthy for an IPO in the ₹360 crore size range. mint+3Republic World+3Goodreturns+3
Strengths & ⚠️ Risks
🔍 Strengths:
- Strong retail demand driving early subscription momentum
- Robust financials: FY25 revenue ₹1,112 crore (+55% YoY), PAT ₹56 cr vs ₹27 crore in FY24; EBITDA margin ~8.8%, RoE ~45% The Economic Times+2The Economic Times+2The Economic Times+2The Economic Times+2Business Today+2mint+2
- Valuation: P/E at ~19× FY25—below peer average of ~23×; attractive relative P/B ratio (~7× vs ~5× peers) mint+2The Economic Times+2mint+2
- Strategic expansion: Working capital growth and a new manufacturing unit in Jaipur funded by IPO proceeds (₹200 cr) with ₹17 cr debt repayment & ₹46 cr capex in facility Business Standard+6Republic World+6mint+6
⚠ Key Risks:
- QIB interest weak (only ~0.02×), could signal lower institutional appetite
- Business is sensitive to gold price volatility, impacting margin cycles
- Customer & regional concentration: Heavy reliance on South Indian B2B clients; North Indian expansion still in early stages
- Working capital and cash flow pressure due to capital-intensive model Moneycontrol+3Goodreturns+3The Economic Times+3mint+2Business Today+2The Economic Times+2mint
🧾 Timeline Snapshot
- Subscription Window: July 25–29, 2025 Republic World+8The Economic Times+8The Economic Times+8
- Allotment Finalization: Expected July 30, 2025 mint+5ClearTax+5Moneycontrol+5
- Refund & Demat Credit: By July 31 Republic World
- Expected Listing Date: August 1, 2025 on NSE & BSE Moneycontrol+4Zerodha+4Business Today+4
🙋 FAQs
Q1: What is the current GMP for Shanti Gold IPO?
As of July 28, GMP was ₹38 per share—indicating ~19% potential listing gain over ₹199. ClearTax+13Business Today+13The Economic Times+13
Q2: How much is the issue subscribed so far?
By Day 2 (July 28), overall subscription stood at ~3.10×, driven by strong retail and NII participation. QIB interest remains low. Business Today+9Business Standard+9The Economic Times+9
Q3: When will allotment be finalized and shares listed?
Allotment expected on July 30; shares credited/refunds initiated by July 31; listing likely on August 1, 2025. Business Standard+2Zerodha+2Republic World+2
Q4: Is GMP a guarantee of listing price?
No. GMP is speculative, reflecting sentiment—not a regulated indicator. Actual listing price may vary. Always evaluate fundamentals. Business TodayThe Economic Times
🔍 Final Verdict
Shanti Gold International IPO shows strong early traction among retail and non-institutional investors, with subscription levels around 3× and a consistent grey market premium of ₹38 (~19% listing upside). The company’s financial performance is solid, with aggressive growth, strong margins, and strategic expansion plans.
Still, cautious investors should watch for low institutional subscription, gold price sensitivity, and regional exposure risk. If you’re targeting short‑term listing returns, the GMP suggests decent starting potential. For long-term believers, the firm’s growth visibility and valuation logic support a mindful subscribe call—provided you’re comfortable with risks around execution and demand variability.
⚠️ Disclaimer
This blog is for informational purposes only and not financial advice. GMP is unregulated and listing gains are not guaranteed. Consult a SEBI‑registered advisor before investing.
