Shanti Gold IPO Subscribed Nearly 7x: Should You Apply or Stay Cautious? A Detailed Analysis

Shanti Gold IPO sees 6.88x subscription. Check GMP, price band, business model, financials, and expert views to know if you should invest.

Shanti Gold IPO Subscribed Nearly 7x: Should You Apply or Stay Cautious? A Detailed Analysis

The glitter of gold continues to attract retail and institutional investors alike, and the latest buzz in the primary market is all about Shanti Gold International Limited's IPO. With a subscription of nearly 7 times on the final day, strong investor interest is clearly visible. But does this mean you should jump in too?

Let us break down everything from grey market premiums (GMP) to business fundamentals, financial performance, and listing expectations to help you make an informed choice.

IPO Highlights at a Glance

Feature	Details
Company Name	Shanti Gold International Limited
IPO Opening Date	July 25, 2025
IPO Closing Date	July 29, 2025
Price Band	₹193 to ₹199 per share
Issue Size	₹360.11 crore (100 per cent Fresh Issue)
Lot Size	Likely 75 shares per lot
Listing Exchange	NSE, BSE
GMP	₹37 (Approximate)
Expected Listing Gain	Around 18.5 per cent

Company Overview: Who Is Shanti Gold International

Shanti Gold International began its journey with a focus on delivering quality and artistry in gold jewellery. Over the years, it has established itself as a trusted name in India’s gold industry, offering a diverse collection of jewellery through its in-house design, manufacturing, and sales operations across the country.

Key differentiators of Shanti Gold include:

In-house designing and customisation capability
Expanding retail footprint
Focus on both B2B and B2C models
Strong regional presence in gold-savvy markets

IPO Objectives: Where Will the Money Go

The ₹360.11 crore being raised from the fresh issue is planned to be used for:

Working Capital Requirements: To fund inventory, purchase of raw materials, and meet day-to-day business liquidity
Retail Expansion: Setting up new showrooms in Tier-2 and Tier-3 cities
Technology Upgrade: Enhancing digital infrastructure for online jewellery retail
General Corporate Purposes: Strengthening the balance sheet and operational resilience

These objectives suggest aggressive growth planning, especially targeting untapped markets.

Subscription Status: Strong Demand on All Fronts

As of the morning of July 29 (10:15 a.m.), the IPO had been subscribed 6.88 times overall. Here is the category-wise break-up:

Retail Individual Investors (RIIs): Oversubscribed
Non-Institutional Investors (NIIs): Strong interest
Qualified Institutional Buyers (QIBs): Expected to join later in the day

High participation from retail and HNI investors often reflects strong sentiment, though QIB demand is crucial to judge long-term faith.

Grey Market Premium (GMP): Listing Gains in Sight

The GMP for Shanti Gold IPO is currently hovering around ₹37 per share, indicating a possible listing gain of approximately 18.5 per cent over the upper price band of ₹199.

While GMP is not a foolproof predictor of listing price, it is often seen as a sentiment indicator. A premium above 15 per cent usually signifies decent expected demand on the listing day.

Financials: Solid or Just Shiny

While the final FY25 data is not fully disclosed yet, as per DRHP and pre-IPO disclosures, here is a snapshot:

Financial Year	Revenue (₹ Crore)	Net Profit (₹ Crore)	EBITDA Margin
FY22	475	14.2	Approximately 4.5 per cent
FY23	560	19.8	Approximately 5.1 per cent
FY24 (Estimate)	620 plus	24 to 26 (Estimated)	Approximately 5.3 per cent

The company has shown steady revenue growth, albeit with thin margins, which is typical in the jewellery business. Margins may improve as the retail segment expands, since retail commands better pricing than wholesale.

Valuation Check: Is the IPO Fairly Priced

With an upper band of ₹199, Shanti Gold’s IPO valuation implies:

P/E Ratio: Approximately 26 to 27 times based on FY24 estimated earnings
Industry Average P/E: Titan (around 77x), Kalyan Jewellers (around 38x), Senco Gold (around 28x)

While Shanti Gold is not as large as Titan or Kalyan, the IPO appears fairly priced compared to its peers, given its growth strategy and improving margins.

Risks to Keep in Mind

Gold Price Volatility: Sharp gold price movements can affect demand and margins
Thin Margins: Despite revenue growth, profitability is still limited
Regional Concentration: Heavy dependence on certain geographies
Competition: Strong competition from established players like Titan, Tanishq, Kalyan, and Senco
High Working Capital Cycle: Jewellery businesses often have longer inventory holding periods

Expert Opinions: What Analysts Are Saying

Angel One: Reasonable valuation and growth visibility make it a decent bet for long-term investors
Swastika Investmart: Positive outlook, strong retail response, and GMP indicate a good chance for listing gains
Reliance Securities: Invest with caution. Listing pop possible, but business risk remains

Analysts are mostly cautiously optimistic, with many recommending applying for listing gains, and some advising waiting for post-listing performance before long-term allocation.

IPO Comparables: Standing Among Peers

Company	Market Cap (₹ Crore)	P/E Ratio	Listing Gains
Senco Gold	Approximately 3800	28x	35 percent
Kalyan Jewellers	Approximately 32000	38x	Flat initially, but doubled since IPO
Shanti Gold (Estimated Post IPO)	Approximately 1200	26x	Expected 18 to 20 per cent

Shanti Gold’s relatively smaller size may allow faster growth compared to peers, but it also carries higher execution risk.

Final Verdict: Should You Apply

Let us break it down:

Apply for Listing Gains if:

You are looking for short-term profits
You trust GMP sentiment and secondary market interest
You believe in the long-term gold demand story, especially with the festive season ahead

Wait and Watch if:

If you prefer stability and prioritise a company’s long-term financial strength and fundamentals, you may identify as a cautious or value-driven investor
You are concerned about thin margins or high competition
You prefer established players like Titan, Senco, or Kalyan

Author’s Note:

The sparkle of Shanti Gold IPO lies in its reasonable valuation, decent growth track, and strong market response, especially from retail investors. GMP also adds to the excitement. But remember, jewellery businesses carry unique risks like price fluctuations, thin margins, and dependency on consumer sentiment.

If you are a risk-tolerant investor, this could be a good short-term play. For long-term investors, consider waiting for a couple of quarterly results post-listing before making major exposure.

Invest smartly and let your portfolio shine like gold.

The Financial And Tech Literacy