As the Indian capital markets brace for another high-profile listing, Shanti Gold International has caught investor attention with its INR 360 crore IPO. A homegrown name rooted in the legacy of India’s love affair with gold, Shanti Gold is a manufacturing-driven B2B powerhouse built on high design efficiency, strong domestic reach, and deep-rooted industry linkages.
In this exclusive deep-dive, we decode the business model, assess its revenue mechanics, evaluate its growth potential, and examine the opportunities and risks that lie beneath the surface shimmer of this Mumbai-based jewellery manufacturer.
Shanti Gold IPO Snapshot
- Issue Type: Fresh
- IPO Size: 1,80,96,000 shares (INR 342.01 – 360.11 crore)
- Price Band: INR 189 – 199 per share
- Lot Size: 75 shares (INR 14,925)
- Closing Date: 29 July 2025
- Allotment Date: 30 July 2025
- Refunds Initiation: 31 July 2025
- Shares in Demat: 31 July 2025
- Listing Date: 1 August 2025 (NSE & BSE)
Shanti Gold Business Model: What Does the Company Do?
Founded in 2003, Shanti Gold International (SGIL) is a manufacturer of 22kt Cubic Zirconia (CZ) casting gold jewellery, supplying a diverse portfolio including:
- Rings, bangles, necklaces, earrings
- Bridal sets and daily wear ornaments
SGIL does not operate retail outlets. Instead, it has built a pure B2B business model catering to major jewellery retailers such as Joyalukkas and Lalithaa Jewellery, operating across 15 states and 2 Union Territories in India.
The company operates a 13,448.86 sq. ft. facility in Andheri East, Mumbai, equipped with modern casting and CAD design infrastructure. A team of 79 in-house CAD designers churns out over 400 unique designs monthly, reflecting its design-centric production edge.
💰 Shanti Gold Revenue Generation Model
Shanti Gold’s revenue engine is fueled by its ability to manufacture and sell CZ gold jewellery in bulk to large institutional buyers.
Key Elements of Revenue Generation:
- Product Manufacturing & Customisation: Use of CAD and casting tech to offer high-variety SKU production.
- Bulk B2B Sales: Transactions with established jewellery chains.
- No Exports or Retail Sales (as of now): 100% revenue from the Indian market.
- Other Income (Minor): Interest and rental income contributed INR 6.06 crore in FY25.
FY25 Revenue Snapshot:
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 679.40 | 711.43 | 1,106.41 |
| Growth (YoY) | – | 4.71% | 55.52% |
| Other Income | 2.87 | 3.60 | 6.06 |
| Net Profit | 19.82 | 26.87 | 55.84 |
| Net Margin (%) | 2.92% | 3.78% | 5.05% |
Revenue in FY25 jumped 55.5%—driven by higher gold prices and increased sales volume.
Cost Structure & Profitability
Shanti Gold’s gross and net margins have shown a healthy uptick over the last three years—indicating better capacity utilisation, pricing discipline, and controlled overheads.
FY25 Cost Breakdown (INR Cr):
- Material Consumed: 1,016.96 Cr (Up 46.6%)
- Finance Costs: 19.22 Cr (Up 34.6%)
- Employee Costs: 5.87 Cr (Up 17.8%)
- Other Expenses: 9.70 Cr (Up 40.9%)
Margin Profile
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| EBITDA Margin | 6.71% | 7.51% | 8.83% |
| Net Profit Margin | 2.92% | 3.78% | 5.05% |
| ROCE (%) | 19.36 | 17.97 | 25.70 |
| RONW (%) | 33.08 | 32.28 | 44.85 |
| Debt/Equity Ratio | 2.37 | 2.18 | 1.60 |
PAT more than doubled in FY25, growing 107.84% YoY, driven by scale benefits and margin expansion.
Shanti Gold IPO Growth Potential
The IPO proceeds of INR 360.11 Cr will be used to:
- 🏭 Set up a new facility in Jaipur (INR 46.3 Cr capex)
- 🔄 Working capital infusion (INR 200 Cr)
- 💳 Debt repayment (INR 17 Cr)
- 🔁 General corporate purposes
The Jaipur expansion aims to diversify operations geographically and scale up capacity to meet rising demand.
🏆 Strategic Moats & Competitive Advantages
- ✅ Design Edge: CAD-driven, design-led manufacturing with 79 full-time designers ensures monthly innovation and SKU freshness.
- ✅ Blue-Chip Clients: Long-standing relationships with marquee brands ensure stable bulk orders.
- ✅ B2B Focus: Avoids the risks and opex associated with retail operations while enjoying brand visibility through partners.
- ✅ Scalable Operations: Asset-light design + outsourced stone-setting = scalable and cost-flexible business.
⚠️ Risks & Constraints
| Risk Area | Details |
|---|---|
| Gold Price Volatility | Raw material cost constitutes ~90% of total costs |
| Regulatory Overhead | Industry is exposed to hallmarking, BIS norms, and PMLA |
| No Exports/Retail | Revenue dependent solely on domestic B2B |
| Working Capital Heavy | Inventory cycles + receivables can strain cash flow |
| Customer Concentration | Significant dependence on a few large clients |
🔍 Shanti Gold Peer Comparison
| Company | Revenue (INR Cr) | PAT Margin | PE (Post IPO) | ROCE (%) | RONW (%) |
|---|---|---|---|---|---|
| Shanti Gold | 1,106.41 | 5.05% | 24.4 – 25.7x | 25.70% | 44.85% |
| Utssav CZ Gold | 646.32 | ~4.5% | 19.35x | 22.1% | 30.94% |
| RBZ Jewellers | 530.15 | ~3.9% | 14.42x | 15.3% | 17.15% |
Shanti Gold outperforms peers on ROCE, RONW, and revenue scale. However, it trades at a slightly premium valuation post-IPO.
📈 Growth Outlook: Poised for Scale
With:
- Strong historical growth (Revenue CAGR: ~27.6%),
- Design-led scalable business model,
- Jaipur expansion in the pipeline,
- Widening margins,
- And improving capital structure,
Shanti Gold is well-positioned for the next phase of domestic scale-up, with potential to eventually tap exports and retail (B2C) as logical next steps.
📝 Final Take
While Shanti Gold may not dazzle like a glitzy retail brand, its fundamentals sparkle in a very different light—capital-efficient manufacturing, consistent growth, and disciplined profitability.
Shanti Gold IPO offers exposure to a fast-growing, high-ROCE jewellery manufacturer with clear earnings visibility and expansion runway. For investors seeking a growth-cum-value story in the formalised jewellery manufacturing space, Shanti Gold is a strong candidate for long-term compounding.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.