Shanti Gold International IPO: Bling It On or Too Polished to Be True?

Shanti Gold International IPO: Bling It On or Too Polished to Be True?

1. At a Glance

Shanti Gold is looking to sparkle on Dalal Street with a ₹360 Cr IPO at ₹199/share. Pure fresh issue. No OFS drama. They craft 22kt CZ casting jewellery, ship nationwide, and cater to names like Joyalukkas and Lalitha Jewellery. But at 25.7x P/E, is the shine worth the price?


2. Introduction with Hook

If Titan is the Tanishq of India, Shanti Gold is the behind-the-scenes wizard bedazzling the jewellery brands with 22kt magic. Think of it as the supplier of sparkle — now demanding market stardom.

  • IPO Size: ₹360.11 Cr
  • Price Band: ₹189–₹199
  • Retail Investment: ₹14,925 (1 lot of 75 shares)
  • Annual Revenue: ₹1,112 Cr (FY25)
  • PAT Growth: +108% YoY

Is this a goldmine opportunity… or cubic zirconia in disguise?


3. Business Model (WTF Do They Even Do?)

Shanti Gold International is a B2B gold jewellery manufacturer, not a retail brand.

  • Products: CZ-studded 22kt gold jewellery — bangles, rings, necklaces
  • Customers: Big-name retailers like Joyalukkas, Alukkas, Vysyaraju
  • Model: In-house production + outsourced finishing = cost-effective scale
  • Design Edge: 80 CAD designers + 400+ designs/month
  • Presence: Operations across 15 states + 1 UT; manufacturing unit in Mumbai

It’s a goldsmith-meets-CAD-lab operation running like a high-efficiency factory.


4. Financials Overview

₹ CrFY23FY24FY25
Revenue682.3715.01,112.5
EBITDA45.653.497.7
PAT19.826.955.8
Net Worth69.896.7152.4
Total Debt165.3210.7233.0

Highlights:

  • Revenue up 56%, PAT up 108% YoY
  • Net margin: ~5%
  • Strong jump in EBITDA, but also rising borrowings

5. Valuation

MetricValue
EPS (Post IPO)₹7.75
P/E (Post)25.7x
P/B7.05
RoNW44.85%
ROCE25.7%

Fair Valuation Estimate:

  • Peer range: 20–28x P/E
  • Shanti’s growth & ROE justify a premium
  • Fair Range: ₹175 – ₹210

At ₹199, pricing is at the upper end, but not outrageous, given the margins + growth.


6. What’s Cooking – News, Triggers, Drama

  • ₹200 Cr for working capital = aggressive expansion
  • New Jaipur plant = additional capacity & North India reach
  • Existing relationship with pan-India retail chains
  • Huge surge in CAD-led mass custom jewellery trend
  • India’s gold demand rebounding = tailwind
  • No OFS = Promoters not cashing out. Full proceeds to company ✅

This IPO is about scale, not brand-building.


7. Balance Sheet

ItemFY25
Assets₹419.8 Cr
Net Worth₹152.4 Cr
Total Debt₹233.0 Cr
Debt/Equity1.60 ❌
Post-IPO D/ELikely down to ~1.0 ✅

They’re investing, not offloading. Post-IPO debt comfort = better ratings = cheaper funding.


8. Cash Flow – Sab Number Game Hai

₹ CrFY23FY24FY25
Cash Flow Ops₹31.6₹37.8₹65.2
CapEx₹-25.0₹-28.3₹-42.6
Debt Movement₹+30.0₹+45.0₹+20.0

They’re spending on plant, inventory, and machines. This is a working capital-heavy biz. Efficiency is the game.


9. Ratios – Sexy or Stressy?

RatioValue
ROCE25.70% ✅
RoNW44.85% ✅
PAT Margin5.05% ✅
EBITDA Margin8.83% ✅
Debt/Equity1.60 ❌
P/E25.7x ⚠️
P/B7.05x ⚠️

Not ultra-cheap, but the fundamentals are shiny like their stock-in-trade.


10. P&L Breakdown – Show Me the Money

₹ CrFY23FY24FY25
Revenue682.3715.01,112.5
EBITDA45.653.497.7
Net Profit19.826.955.8
EBITDA Margin6.7%7.5%8.83%
Net Margin2.9%3.8%5.05%

Margin expansion story — growing profits faster than topline. Good sign.


11. Peer Comparison

CompanyRev (₹ Cr)PAT (₹ Cr)P/EROCESegment
Shanti Gold1,11255.825.7x25.7%B2B Jewellery
Senco Gold5,08716128x16%B2C Retail
Kalyan Jewellers17,20343033x12%B2C Retail
Titan (Jewellery)36,000~3,00070x28%B2C + B2B

Shanti = smaller, leaner, and more B2B efficient than retail chains.


12. Miscellaneous – Shareholding, Promoters

PromotersPre IPOPost IPO
Pankaj Jagawat & Co.99.99%74.89%
  • No Offer for Sale
  • Lead Manager: Choice Capital Advisors
  • Registrar: Bigshare
  • Employees: 222 + 100 contract staff
  • Manufacturing unit: Mumbai (to be complemented by Jaipur)

Solid promoter skin-in-the-game.


13. EduInvesting Verdict™

This isn’t a jewellery brand play. This is a jewellery engine play.

Shanti Gold isn’t opening showrooms; it’s opening factories and fulfilling supply chains.

  • Strong growth, excellent margins
  • Healthy return ratios
  • Aggressive expansion + full IPO proceeds for growth
  • Priced at ~26x — fair for a company with 108% PAT growth

If you want quiet compounding with glitter, not noise and billboards — this IPO fits your portfolio like a perfectly polished ring.


Metadata
– Written by EduInvesting Team | July 23, 2025
– Tags: Shanti Gold International IPO, Jewellery IPO, Gold Manufacturing, CZ Jewellery, Joyalukkas, Kalyan, Bigshare, Choice Capital, IPO Review

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