Shanti Gold International Ltd, a well-known gold jewellery manufacturer, has opened its ₹360 crore IPO to the public — and the numbers are already promising! As of Day 2 (July 28), the issue is subscribed 1.52 times, with retail investors rushing in at 2.34 times the allotment size. So, what’s driving this excitement? And should you consider applying?

Let’s break it down in simple words.

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📈 IPO Subscription Status (Day 2 at 10:09 AM)

• Total subscription: 1.52 times

• Retail investors: 2.34 times

• Non-Institutional Investors (NIIs): 1.61 times

• QIBs (Big institutional players): Just 1% so far

The IPO will close on July 29, so you still have time to decide.

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💰 IPO Details

• Price Band: ₹189 to ₹199 per share

• Lot Size: 75 shares (and in multiples of 75 after that)

• Total Issue Size: ₹360 crore (fresh issue only)

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🪙 What Does Shanti Gold Do?

Shanti Gold International designs and manufactures different types of gold jewellery. Their annual capacity is 2,700 kg. In the last financial year (FY25), the company saw a 55.52% increase in revenue, growing to ₹1,106.41 crore. Their profit more than doubled from ₹27 crore to ₹56 crore!

They are also planning to use the IPO funds to:

• Set up a new facility in Jaipur

• Repay ₹17 crore loan from Saraswat Bank

• Manage working capital needs

• Cover general corporate expenses

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📊 Is the IPO Fairly Priced?

Brokerage firm GEPL Capital says the IPO is priced at a P/E of 19.2x, which is considered reasonable compared to peers. The company is also expanding its reach across India and showing strong financial growth. They’ve given it a “Subscribe” rating.

Another firm, Adroit Financial, points out that clearing debt and expanding operations will boost long-term performance. They too recommend subscribing, especially for long-term investors.

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🌟 Anchor Investors That Have Backed the IPO

Before the IPO opened to the public, Shanti Gold raised ₹108 crore from anchor investors, including:

• Societe Generale

• Wealthwave Capital Fund

• Rajasthan Global Securities

• Astorne Capital VCC Arven

• Shine Star Build Cap Pvt Ltd

• J4S Venture Fund

• Meru Investment Fund PCC – Cell 1

This indicates good institutional interest.

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🔍 What About GMP (Grey Market Premium)?

As of today, the GMP is ₹38, meaning the share is expected to list at around ₹237 — which is about 19.1% above the IPO price. The trend in the grey market is positive, suggesting a good chance of listing gains.

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🛑 Risks to Consider

• Gold price volatility: Since the business depends on gold, a sudden drop in prices can impact profits.

• Debt load: While part of the IPO funds will repay loans, the company still had a debt of ₹242 crore as of May 2025.

• QIB response low so far: Only 1% subscription from QIBs may be a concern unless it improves on the final day.

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✅ Should You Apply?

👉 Apply if:

• You’re a long-term investor looking for a solid jewellery brand with growth potential.

• You want to aim for possible listing gains based on current GMP trends.

• You believe in the company’s expansion plans and financial growth.

👉 Avoid if:

• You are cautious about gold price risks or prefer companies with zero debt.

• You’re only interested in short-term listing gains and want guaranteed QIB support.

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📅 Final Thoughts

With strong retail interest, a reasonable valuation, and positive grey market signals, Shanti Gold International’s IPO looks promising. But like with any investment, it’s wise to assess your risk appetite and consult with a financial advisor before applying.

⏳ Hurry! The IPO closes on July 29, 2025.

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Disclaimer: This blog is for informational purposes only. Always consult your financial advisor before making any investment decisions.

Reference from:- https://www.livemint.com/market/ipo/shanti-gold-ipo-day-2-live-shanti-gold-international-ipo-review-shanti-gold-ipo-gmp-shanti-gold-ipo-subscription-status-11753670539602.html