Posted July 28, 2025
Shanti Gold International IPO Day 2 Live: Issue Booked 1.16x So Far. Check GMP, Review, Subscription Status. Apply or Not?
Introduction
The Indian IPO market has once again caught the attention of investors—and this time, it's Shanti Gold International Ltd that’s making headlines. On Day 1, its IPO was subscribed 1.16x, clearly reflecting investor confidence. But the burning question remains—should you apply or skip? In this article, we’ll break down everything from GMP to broker reviews, so you can make an informed decision before the issue closes on July 29.
Company Overview
About Shanti Gold International Ltd
Shanti Gold is a renowned name in the gold jewellery manufacturing sector in India. Based on strong craftsmanship and design excellence, the company has carved a niche in both domestic and international markets.
Business Model and Market Presence
The business revolves around designing, manufacturing, and distributing gold jewellery, catering to wholesalers and retailers. The company is steadily expanding its geographical presence to cover major Indian cities and even international clients.
Manufacturing Capacity & Core Products
With an annual production capacity of 2,700 kg, Shanti Gold specializes in bangles, chains, rings, necklaces, and other customised jewellery items.
IPO Details
Shanti Gold IPO Price Band
The price band for the IPO is set at ?189-?199 per equity share.
IPO Opening and Closing Dates
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Open Date: July 25, 2025
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Close Date: July 29, 2025
Lot Size and Minimum Investment
Investors can apply in lots of 75 shares, and multiples thereof.
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Minimum Investment (Retail): ?14,925 (75 shares at ?199)
IPO Objectives and Fund Utilization
The company plans to:
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Repay a ?17 crore term loan
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Invest in business expansion
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Strengthen working capital
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Improve overall cash flow
Day 1 Subscription Status
Overall Subscription Highlights
As per BSE data, the IPO received bids for 1,46,79,750 shares vs 1,26,67,200 shares available—indicating 1.16x overall subscription.
Retail Investors' Response
The retail category was most active with a 1.84x subscription—a strong vote of confidence from small investors.
Institutional and HNI Interest
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QIBs: Only 1% bids received
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Non-Institutional Investors (NII): 1.09x subscribed
Grey Market Premium (GMP) Update
What is GMP?
Grey Market Premium (GMP) reflects the premium at which IPO shares are being traded before official listing.
Current GMP Trend for Shanti Gold IPO
As of Day 2, market sources indicate a GMP in the range of ?40-?45, suggesting a possible 15-20% listing gain.
What GMP Indicates for Listing Gains
A rising GMP often shows strong demand, which might lead to a positive listing on the stock exchange. However, it’s not a guaranteed indicator.
Anchor Investor Participation
Who are the Anchor Investors?
Prominent institutions like:
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Societe Generale
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Wealthwave Capital Fund
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Rajasthan Global Securities
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Astorne Capital VCC Arven
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J4S Venture Fund – I
How Much Did They Invest?
Anchor investors collectively pumped in over ?108 crore, a significant backing that adds credibility to the issue.
Financial Performance
Revenue and PAT Growth (FY24 vs FY25)
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Revenue: ?711.43 crore (FY24) → ?1,106.41 crore (FY25) = 55.52% growth
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Profit After Tax (PAT): ?27 crore (FY24) → ?56 crore (FY25) = 2x jump
Key Financial Metrics to Watch
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P/E Ratio (Post IPO): ~19.2x
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Strong EBITDA margins
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Healthy cash flow post debt repayment
Impact of Debt Repayment
Repaying the Saraswat Bank loan of ?17 crore will improve cash flows and reduce interest outgo—positively impacting bottom-line growth.
Expert IPO Reviews
GEPL Capital’s Recommendation
GEPL highlights the company's valuation, growth strategy, and profitability as strong reasons to subscribe, especially for long-term investors.
Adroit Financial Services' Insights
Adroit notes that the company is well-positioned to grow by improving cash flow and reducing debt. Their verdict? “Subscribe for the long term.”
What Makes It a Long-Term Bet?
The combination of:
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Robust financials
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Strategic expansion
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Debt reduction
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Industry tailwinds
makes Shanti Gold a compelling investment.
Industry & Market Outlook
Gold Jewellery Industry in India
India is among the top consumers of gold globally. With increasing disposable incomes and wedding season demand, the gold jewellery sector is expected to grow steadily.
Shanti’s Competitive Positioning
With cost-efficient operations and premium designs, Shanti is well-placed among Tier-2 manufacturers, and it’s eyeing a move to the next league.
Risks and Challenges
Impact of Gold Price Volatility
A sudden drop in gold prices could directly impact inventory valuation and profitability.
Operational and Market Risks
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Competition from established players
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Logistics and supply chain issues
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Regulatory risks in the gold industry
Apply or Not?
Should You Subscribe for Listing Gains?
If you’re looking for short-term gains, the current GMP and strong retail subscription signal a potentially positive debut.
Is It a Good Long-Term Investment?
Absolutely—strong fundamentals, profit growth, debt repayment, and brokerage backing all point to Shanti Gold being a solid long-term play.
Conclusion
Shanti Gold International's IPO is more than just market hype—it’s backed by strong financials, anchor investor trust, and analyst optimism. With a reasonable valuation and impressive growth story, this IPO deserves your attention. While short-term listing gains look promising, the bigger opportunity lies in holding for the long haul.
Disclaimer
The information provided in this article is for educational and informational purposes only. It does not constitute financial, investment, legal, or tax advice. Please consult with a certified financial advisor or a SEBI-registered professional before making any investment decisions. The author and publisher are not responsible for any financial losses or legal consequences incurred as a result of using this information
