Shanti Gold Share Price Surges on IPO Debut — Real-Time Analysis & Future Outlook

Shanti Gold Share Price Makes Strong Debut — Here's Why Everyone's Watching

The excitement surrounding the Shanti Gold share price has intensified today, August 1, 2025, as the company made its debut on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The listing price opened at ₹229.10 on BSE and ₹227.55 on NSE, marking a 15% premium over its IPO issue price of ₹199. This performance, although slightly below the grey market premium (GMP) forecast of ₹233, still signals strong investor confidence.

Shanti Gold International Ltd, a Mumbai-based manufacturer of 22kt CZ casting gold jewellery, has drawn significant attention due to its robust IPO subscription and impressive financials. The company’s IPO size was ₹360.11 crore, entirely a fresh issue, with a price band set between ₹189 and ₹199. The IPO was oversubscribed by 81.17 times overall, with retail investors subscribing 30.37 times, qualified institutional buyers (QIBs) subscribing 117.33 times, and non-institutional investors (NIIs) subscribing 151.48 times. This overwhelming demand was further supported by a strong anchor book, which raised ₹108 crore from prominent institutional investors including Societe Generale and Wealthwave Capital.

Company Snapshot: Shanti Gold International Ltd

Founded in 2003, Shanti Gold International operates in the gems and jewellery sector, focusing on high-quality gold jewellery manufacturing. The company boasts a manufacturing capacity of 2,700 kilograms per year and has a strong presence across 15 states and one union territory in India. Its offices are located in major cities including Mumbai, Bengaluru, Chennai, and Hyderabad.

Financially, the company has shown remarkable growth. In FY25, Shanti Gold reported revenue of ₹1,106.41 crore, reflecting a 55.5% year-on-year increase. Profit after tax (PAT) surged to ₹56 crore, more than doubling from the previous year with a 107.8% growth. EBITDA also saw a significant rise of 83% year-on-year, reaching ₹97.7 crore. Post-IPO, the company’s market capitalization stands at ₹1,434.7 crore, with a price-to-earnings (P/E) ratio of 25.7x based on FY25 earnings. The return on equity (ROE) is an impressive 44.8%, while the return on capital employed (ROCE) is 26.2%.

Why This Is Trending Right Now

The Shanti Gold share price is trending due to several key factors. First, the IPO frenzy has captured the attention of both retail and institutional investors. The oversubscription rate of 81.17 times is a clear indicator of strong market demand. Second, the grey market premium leading up to the listing ranged between ₹34 and ₹38, suggesting a potential listing price of ₹233. Although the actual listing was slightly below this estimate, the 15% gain still delivered solid returns for early investors.

Third, the company’s strategic expansion plans have added to its appeal. Shanti Gold intends to utilize the IPO proceeds to fund a new manufacturing facility in Jaipur with an allocation of ₹46.3 crore. Additionally, ₹200 crore will be directed toward working capital, ₹17 crore for debt repayment, and the remaining funds for general corporate purposes. These initiatives are expected to enhance production capacity and operational efficiency, further strengthening the company’s market position.

Lastly, the company’s financial trajectory has been impressive. With revenue growth of over 55% and PAT doubling year-over-year, Shanti Gold has demonstrated strong fundamentals that support its valuation and investor interest.

Strategic Analysis: What Investors Should Know

Shanti Gold operates a business-to-business (B2B) model, supplying its products to major jewellery brands such as Joyalukkas and Lalitha Jewellery. This model allows the company to maintain consistent demand and build long-term relationships with clients. Its integrated manufacturing process, combined with CAD-led design capabilities, gives it a competitive edge in the industry.

From a valuation perspective, the company’s P/E ratio of 25.7x is considered reasonable given its growth trajectory. The post-IPO market cap of ₹1,434.7 crore places it firmly in the mid-cap category, offering both stability and growth potential. The high ROE and ROCE figures further reinforce its financial strength and operational efficiency.

Geographically, Shanti Gold has established a strong footprint across India, with operations in 15 states and one union territory. Its presence in key metropolitan areas ensures access to major markets and logistical advantages.

Post-Listing Strategy: What Should You Do?

For short-term investors, the 15% listing gain presents an opportunity to book partial profits. Market analysts suggest that the stock may experience some consolidation before its next upward movement. However, for long-term investors, Shanti Gold offers a compelling growth story. The company’s expansion plans, strong financials, and established market presence make it a promising candidate for portfolio inclusion.

Investors should monitor quarterly earnings, execution of expansion projects, and broader market trends in the gold and jewellery sector to make informed decisions.

FAQ Section

Q1: What is the current Shanti Gold share price?
As of August 1, 2025, Shanti Gold is trading at ₹229.10 on BSE and ₹227.55 on NSE.

Q2: Is Shanti Gold a good investment?
Yes, based on its strong financial performance, high IPO subscription rate, and strategic expansion plans, Shanti Gold is considered a solid long-term investment.

Q3: What was the IPO subscription rate?
The IPO was oversubscribed 81.17 times, with significant interest from retail, institutional, and non-institutional investors.

Q4: What is the GMP for Shanti Gold?
The grey market premium before listing ranged between ₹34 and ₹38, indicating strong listing expectations.

Q5: Where is Shanti Gold listed?
Shanti Gold is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) under the symbol SHANTIGOLD.

Final Thoughts

The debut of Shanti Gold share price on the stock market has validated investor optimism, delivering a 15% premium over its IPO price. While the listing fell slightly short of grey market expectations, the fundamentals remain robust. With aggressive expansion plans, strong financial metrics, and a well-established B2B model, Shanti Gold International is well-positioned for sustained growth.

Whether you're a short-term trader looking to capitalize on listing gains or a long-term investor seeking value in the gold jewellery sector, Shanti Gold offers a compelling opportunity. As always, investors should stay informed and align their strategies with market developments and company performance.