Incorporated in 2003, Shanti Gold International is engaged in the business of manufacturing gold jewellery. The company manufactures high-quality 22kt CZ casting gold jewellery, specializing in design and production.

The product offerings encompass a wide range of high-quality, intricately designed jewellery, including bangles, rings, necklaces, and complete sets catering to various price points and occasions, from weddings and festivals to everyday wear. All its gold jewellery products are hallmarked by the Bureau of Indian Standards (BIS).

Many pieces feature intricately studded gemstones in CZ casting gold, crafted by a team of designers using computer-aided design (CAD) technology. As of May 31, 2025, a team of 79 CAD designers regularly developed over 400 designs per month.

Caters to prominent jewellery businesses, including leading corporate brands like Joyalukkas India, Lalithaa Jewellery Mart, Alukkas Enterprises, and Vysyaraju Jewellers, among other esteemed clients.

The customer network spans 15 states and 2 union territories across India, as well as four countries abroad. Operations cover key cities such as Mumbai, Bangalore, Chennai, and Hyderabad, supported by branch offices in Tamil Nadu, Andhra Pradesh, Karnataka, Telangana, Gujarat, and Madhya Pradesh.

A majority of revenue is derived from South India, accounting for 72.76% of total revenue in FY25, while the rest of India contributed 21.88% and exports made up 5.36%.

The largest client accounted for 7.32% of total revenue in FY25, while the top 10 clients collectively contributed 34.49%.

Its manufacturing facility spans over 13,448.86 square feet area in Andheri East, Mumbai, equipped to produce variety of jewellery with precision and efficiency. As of 17 July 2025, it has an installed manufacturing capacity of 2,700 kg per annum.

Planning a capacity expansion through the construction and establishment of a new manufacturing facility in Jaipur, equipped with a wide range of advanced and diverse machinery. The proposed facility will have an installed production capacity of 1,200 kgs, increasing the total installed capacity from 2,700 kgs to 3,900 kgs.

The facility will be built on 50,000 square feet of leasehold land and designed to support future growth and operational efficiency. Additionally, a new line of machine-made plain gold jewellery is planned to be introduced at the Jaipur facility.

For the fiscal years 2025, 2024, and 2023, a total of 455, 372, and 379 customers were served, respectively.

Intends to expand presence in North India to capture a wider customer base. Additionally, aims to grow its footprint in global markets, including the USA and the UAE.

Offer and its objects

The IPO consist of a fresh issue of 1,80,96,000 equity shares, aggregating up to Rs 360.11 crore.

Price band for the IPO is Rs 189 to Rs 199 per equity share of face value Rs 10 each.

The objectives for the fresh issue includes Rs 46.29 crore for funding of capital expenditure requirements towards setting up of the Proposed Jaipur Facility, Rs 200 crore for funding working capital requirements, Rs 17 crore for repayment and/or pre-payment of certain borrowings, and remaining amount for general corporate purpose.

The promoters are Pankajkumar H Jagawat, Manojkumar N Jain and Shashank Bhawarlal Jagawat. The promoters and promoter group hold an aggregate of 5,39,89,200 equity shares, aggregating to 99.98% of the pre-offer issued and paid-up equity share capital. Their post IPO shareholding is expected to be around 74.89%.

The issue, through the book-building process, will open on 25 July 2025 and will close on 29 July 2025.

Strengths

Strong financial performance demonstrated by consistent growth in revenue from Rs 679.4 crore in FY23 to Rs 1,106.41 crore in FY25, and an improvement in EBITDA margin from 6.28% to 8.28%, reflecting enhanced operational efficiency.

Fully integrated in-house manufacturing setup enables it to exercise control over the quality of products and meet customer expectations.

Offers a wide and diverse range of jewellery designs, catering to varied customer preferences across occasions, styles, and price points.

Established long-standing relationships with prominent jewellery businesses, including leading corporate brands like Joyalukkas India, Lalithaa Jewellery Mart, Alukkas Enterprises, Vysyaraju Jewellers, and many other esteemed clients.

Well placed to benefit from surge in demand for gold jewellery supported by rising disposable incomes, increasing urbanization, evolving fashion preferences, and a cultural affinity for gold.

Scaling up manufacturing capabilities and strengthening market reach in North India to help capture a wider customer base.

Extensive experience of promoters and senior management personnel.

Weaknesses

A significant portion of business operations and revenue is concentrated in Southern India, accounting for 72.76% of revenue in Fiscal 2025. This regional concentration exposes the business to economic, cultural, geopolitical, and local market risks.

Exposed to fluctuations in the price and availability of gold, both of which are influenced by factors such as import duties, global economic conditions, geopolitical factors, and fluctuations in demand and supply in the international markets.

Experienced negative net cash flow from operating activities in the past three Fiscals and may continue to do so in future, which could have a material adverse effect on the business.

The nature of the business requires maintaining sufficient inventories, leading to high inventory costs. Inventory accounted for 42.28% of total current assets in FY25.

The statutory auditor’s CARO report for Fiscal Years 2023, 2024, and 2025 noted that while most undisputed statutory dues were paid on time, some remained outstanding beyond six months. Additionally, several direct and indirect tax disputes are ongoing before various authorities.

There are outstanding legal proceedings (including criminal proceedings) involving, its directors, and promoters. An adverse outcome in any of these proceedings could negatively affect the business.

Valuation

Net sales increased 56% to Rs 1,106.41 crore in FY2025 as compared with FY2024. The OPM improved 127 bps to 8.28%, leading to 84% increase in OP to Rs 91.66 crore. OI increased 68% to Rs 6.06 crore. Interest cost rose 35% to Rs 19.22 crore. Depreciation cost went up 69% to Rs 5.66 crore. PBT surged 103% to Rs 72.83 crore. Tax expenses were Rs 16.99 crore as compared with Rs 8.96 crore. Net profit soared 108% to Rs 55.84 crore.

The TTM EPS on post-issue equity works out to Rs 7.75. At the upper price band of Rs 199, P/E is 26.

Listed peers such as Utssav CZ Gold Jewels traded at TTM P/E of 19, RBZ Jewellers trades at TTM P/E of 15, and Sky Gold at TTM P/E of 38 as on 22 July 2025. The OPM and ROE stood at 8.28% and 44.85% respectively, in FY2025. These were 6.03% and 31.44% for Utssav CZ Gold Jewels, 12.13% and 17.16% for RBZ Jewellers, and 5.53% and 28.83% for Sky Gold, respectively.