1. At a Glance
Shanti Gold International is coming to the bourses with a ₹360.11 crore IPO, entirely fresh issue. Retailers are lapping it up (1.84× on Day 1), QIBs barely awake. Aggressive pricing at ₹199 could either shine like 22kt gold or sink like cheap brass.
2. Introduction with Hook
Picture this: Mumbai’s Andheri East—more famous for traffic jams than unicorns—hosts a 13,448 sq. ft. jewellery factory pumping out 400 new designs every month. Now, this glitter factory wants ₹360 crore from you. Revenue grew 56% last year to ₹1,112 crore, PAT doubled to ₹55.8 crore. Sounds sexy? Hold that thought—IPO valuations are spicier than roadside pani puri.
3. Business Model (WTF Do They Even Do?)
Shanti Gold is strictly B2B—think wholesaler to big brands like Joyalukkas, Lalitha, Alukkas.
- Products: Bangles, rings, necklaces, sets—daily wear to wedding bling.
- Process: CAD designers (80 of them) + machines + outsourced stone setters.
- Scale: 2,700 kg annual capacity; supplying across 15 states & 1 UT.
- Revenue Source: Selling finished jewellery to retail chains—no direct retail presence.
The model works—until it doesn’t, because B2B margins are razor thin.
4. Financials Overview (Big Numbers)
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 682.3 | 715.0 | 1,112.5 |
| EBITDA | 45.6 | 53.4 | 97.7 |
| PAT | 19.8 | 26.9 | 55.8 |
| Net Worth | 69.8 | 96.7 | 152.4 |
| Total Borrowings | 165.3 | 210.7 | 233.0 |
Verdict: Topline’s flexing, bottom line’s finally showing some biceps. But debt at ₹233 crore? Let’s say the gold’s got some weight to carry.
5. Valuation (What’s This Stock Worth?)
- Pre‑IPO EPS: ₹10.34 → P/E 19.2×
- Post‑IPO EPS: ₹7.75 → P/E 25.7×
- PBV: 7.05×
Valuation Range: ₹160–₹210 (using peer multiples & EV/EBITDA).
DCF whispers ₹180, market’s shouting ₹199. Someone’s had too much coffee.
6. What’s Cooking – News, Triggers, Drama
- New Jaipur facility = capacity boost + better margins (if executed right).
- Expanding supplier base across 15 states—strong distribution muscle.
- Retail oversubscription day one.
- QIB subscription at 0.01×: institutions aren’t buying the fairy tale yet.
Drama factor: Listing pop depends purely on retail hysteria.
7. Balance Sheet (Debt Not Drowning, But Coughing)
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Assets | 256.9 | 325.4 | 419.8 |
| Liabilities | 187.1 | 228.7 | 267.5 |
| Net Worth | 69.8 | 96.7 | 152.4 |
| Debt | 165.3 | 210.7 | 233.0 |
Commentary: D/E ratio 1.6× – the company’s not drowning, but definitely spluttering.
8. Cash Flow – Sab Number Game Hai
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating CF | 34.5 | 44.8 | 61.2 |
| Investing CF | (15.3) | (21.6) | (40.7) |
| Financing CF | (10.2) | (14.3) | (20.5) |
Looks like your freelancer friend—always busy, never enough cash in hand.
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 44.8% |
| ROCE | 25.7% |
| PAT Margin | 5.05% |
| EBITDA Margin | 8.8% |
| D/E | 1.6× |
ROE hotter than a trending hashtag. Margins? Meh. D/E says handle with care.
10. P&L Breakdown – Show Me the Money
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 682.3 | 715.0 | 1,112.5 |
| EBITDA | 45.6 | 53.4 | 97.7 |
| PAT | 19.8 | 26.9 | 55.8 |
Topline’s sprinting, bottom line’s jogging.
11. Peer Comparison – The Wedding Guests
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Rajesh Exports | 3,12,000 | 1,000 | 14× |
| Kalyan Jewellers | 17,800 | 450 | 26× |
| Senco Gold | 5,200 | 150 | 27× |
| Shanti Gold | 1,112 | 56 | 25× |
The least drunk guest at a wedding full of finance bros.
12. Miscellaneous – Shareholding, Promoters
- Promoters: Pankajkumar H Jagawat, Manojkumar N Jain, Shashank Bhawarlal Jagawat
- Pre‑IPO stake: 99.99%
- Post‑IPO stake: 74.9%
Promoter dilution is healthy, control stays. No anchor drama spotted.
13. EduInvesting Verdict™
Shanti Gold International is polishing its B2B crown with an aggressively priced IPO. Retail sentiment is glittering, QIBs are cautious, valuations stretched. This is no magic wand—execution is everything.
A decent pit stop in the jewellery lane, but don’t expect business‑class legroom.
Written by EduInvesting Team | 27 July 2025
Tags: Shanti Gold International, IPO, ₹360 Cr Fresh Issue, Jewellery Manufacturing, B2B Jewellery, Gold Jewellery IPO, Edu Style Article, EduInvesting Premium
