IPO Note : Shanti Gold International Ltd by Choice Broking Ltd
Salient features of the IPO:
* Shanti Gold International Ltd. (SGIL), is a manufacturer of high-quality 22kt CZ casting gold jewellery, is coming up with an IPO to raise around Rs. 3,600mn, which opens on 25th Jul and closes on 29th Jul, 2025. The price band is Rs. 189 - 199 per share.
* The IPO is completely a new offering of shares in the tune of Rs. 3,600mn. From the fresh issue net proceeds, the company will be utilizing Rs. 2,000mn for funding the working capital requirement; another Rs. 463mn will be used to fund the capital expenditure requirements towards settingup of the proposed Jaipur facility: and Rs. 170mn for the re-payment/prepayment of certain borrowings availed by the company. Residual proceeds will be used for general corporate purposes.
* Post-IPO, the P&PG and public shareholders will have 74.89% and 25.11% stake in the company, respectively.
Key competitive strengths:
* Wide range of jewellery designs driven by team of experts
* Complete in-house manufacturing: Ensuring quality at every step
* Financially stable business model
* Established relations with corporate and jewellery businesses
* Experienced promoters with execution capabilities
Business Strategy:
* Capturing market opportunities in the growing jewellery industry
* Geographical expansion in North India
* Penetrate new clients within the existing export countries
* Augmenting working capital for scalable business operations
Below are the key highlights of the company:
* India’s jewellery market is on a rapid upswing, projected to reach Rs. 4,653bn in CY24 and Rs. 7,162bn by CY29 at a CAGR of 9.7%, fueled largely by rising disposable incomes and the middle class’s demand for gold which is both a status symbol and investment.
* SGIL established in 2003, is among the leading manufacturers of high-quality 22kt CZ casting gold jewellery in terms of installed production capacity. The company offers a wide range of high quality, intricately designed pieces, including bangles, rings, necklaces, and complete jewellery sets across various price points ranging from jewellery for special occasions, such as weddings to festive and daily-wear jewellery.
* It operates a fully integrated in-house manufacturing facility in Andheri, Mumbai, spanning across 13,449sq. ft. and with an installed capacity of 2,700 kg per annum.
* While the company’s key manufacturing processes are mechanized using equipment such as casting machines, induction melter, etc., it also relies on skilled outsourced labour for precision tasks like manual stone setting.
* SGIL is known for its craftsmanship, innovative designs and robust manufacturing capabilities. The company has a team of 79 CAD designers and uses advanced CAD technology to produce over 400 intricate CZ casting gold jewellery designs each month.
* It has built a long-standing relationships with leading corporate jewellery brands such as Joyalukkas India Ltd., Lalithaa Jewellery Mart Ltd., Alukkas Enterprises Pvt. Ltd., and other esteemed clients. Its top-10 customers contribute 34.5% of the revenue as of FY25, while the rest of the business is from standalone retail stores & distributors.
* The company has grown into a pan-India brand with a presence in 15 states, two union territory in India. It also exports to countries like UAE, Singapore, Qatar, and the USA.
* SGIL’s strong South Indian presence (around 73% of the revenue in FY25) is driven by the region’s cultural preference for intricate gold jewellery & gold as an investment.
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SEBI Registration no.: INZ 000160131
