Shanti Gold IPO Oversubscribed 2.25x on Day 2, Retail Investors Show Strong Interest
By ScanX News Team
Shanti Gold International's IPO has been oversubscribed 2.25 times on its second day, with retail investors leading the charge at 3.49 times oversubscription. The Rs 360.11 crore IPO has a price band of Rs 189-199 per share. The grey market premium indicates potential listing gains of 19.10%. The company, specializing in 22kt CZ casting gold jewellery, has shown strong financial growth with revenue increasing from Rs 679 crore in FY23 to Rs 1,106 crore in FY25. The IPO is valued at a P/E ratio of 19x, below the industry average.
*this image is generated using AI for illustrative purposes only.
Shanti Gold International's Initial Public Offering (IPO) has garnered significant attention from investors, achieving a 2.25 times subscription on its second day. The strong response has been primarily driven by retail investors, showcasing their confidence in the Mumbai-based jewellery manufacturer.
Subscription Details
The IPO's subscription breakdown reveals:
- Retail investors: 3.49 times oversubscribed
- Non-institutional investors: 2.48 times oversubscribed
IPO Specifics
- Fresh issue: 1.81 crore shares
- Total issue size: Rs 360.11 crore
- Price band: Rs 189-199 per share
- Minimum application: 75 shares
Grey Market Premium
The grey market is showing a premium of Rs 38 for Shanti Gold shares, indicating potential listing gains of 19.10% over the upper price band of Rs 199.
Anchor Investment
Prior to the public offering, Shanti Gold successfully raised Rs 108 crore from anchor investors, including Societe Generale and others, demonstrating institutional interest in the company.
Company Profile
Shanti Gold International is a Mumbai-based manufacturer specializing in 22kt CZ casting gold jewellery. The company primarily serves clients like Joyalukkas and Alukkas in southern India.
Financial Performance
The company has shown robust financial growth:
| Fiscal Year | Revenue (Rs crore) | Net Profit (Rs crore) |
|---|---|---|
| FY23 | 679.00 | 19.80 |
| FY25 | 1,106.00 | 55.80 |
- EBITDA margin: Expanded to 8.83% in FY25
- Return on equity: 44.85% in FY25
Valuation and Recommendations
The IPO values Shanti Gold at a price-to-earnings (P/E) ratio of 19x, which is below the industry average of 23x. Several brokerages have recommended subscription to the IPO, citing the company's strong financials and growth strategy.
Conclusion
With its strong subscription rates and positive grey market premium, Shanti Gold International's IPO appears to have captured investor interest. The company's financial performance and strategic position in the gold jewellery manufacturing sector have contributed to the positive sentiment surrounding this public offering.
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