Shanti Gold shares made a healthy stock market debut on August 1, following strong demand in its initial public offering (IPO), which was subscribed 80.80 times during the offer period from July 25 to 29.
Shares of Shanti Gold International listed at Rs 227.55 per share on the NSE, a premium of 14.35 percent from it's IPO price. The initial share sale had a price band of Rs 189-199 per share.
The company's stock started trading at Rs 229.10, a jump of 15.12 per cent from the issue price on the BSE. The company's market valuation stood at Rs 1,679.84 crore.
Shanti Gold shares: What investors should do?
Narendra Solanki, Head – Fundamental Research, Investment Services at Anand Rathi Shares and Stock Brokers, said the company is a prominent manufacturer of 22kt CZ casting gold jewellery with a business-to-business model. It supplies to major corporate jewellery brands and wholesale buyers across India and select overseas markets.
Solanki added that the company operates an integrated manufacturing setup, backed by strong CAD-led design capabilities, and offers a wide range of products including bangles, rings, necklaces and bridal sets. "We expect the company to list at a premium given the current grey market trend," he said.
At the upper end of the price band, Shanti Gold is valued at 25.7 times its FY25 estimated earnings, with a post-issue market capitalisation of Rs 1,434.7 crore. The company services 15 states and one union territory and has branch offices in cities such as Mumbai, Bengaluru, Chennai and Hyderabad. It also counts brands like Joyalukkas, Lalitha Jewellery and Alukkas Enterprises among its clients.
The Rs 360-crore Initial Public Offering (IPO) was entirely a fresh issue of 1.81 crore shares worth Rs 360.11 crore, at the upper end of the price band, with no offer-for-sale (OFS) component.
Proceeds of the issue will be used for setting up a facility in Jaipur, funding the company's incremental working capital requirements, payment of debt and for general corporate purposes.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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