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Mumbai-based Shanti Gold International Limited files DRHP for IPO | Stock Market News
Source: Live Mint
Mumbai-based Shanti Gold International Limited has filed Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).
The IPO, with an equity share face value of ₹10, consists entirely of a fresh issuance of up to 18 million equity shares.
The proceeds from the fresh issue will be utilized as follows: ₹45.83 crore will fund capital expenditure for the proposed Jaipur facility, ₹190 crore will be allocated towards the company’s incremental working capital needs, ₹20 crore will be used to repay or prepay certain borrowings, either partially or fully, and the remainder will go toward general corporate purposes.
The issue is being conducted through the book-building process, with the net issue allocated as follows: up to 50% on a proportionate basis for qualified institutional buyers, at least 15% for non-institutional bidders, and at least 35% for retail individual bidders.
The promoters and directors of Shanti Gold International Limited, Mr. Pankajkumar H. Jagawat and Mr. Manojkumar N. Jain, each have over 20 years of experience in the jewellery industry.Additionally, promoter and director Mr. Shashank Bhawarlal Jagawat has over 16 years of industry experience.
Choice Capital Advisors Private Limited is the sole book-running lead manager to the issue and Bigs hare Services Private Limited is the registrar to the offer.
About the company
Shanti Golds’ Revenue from Operations increased by 4.71 per cent from ₹679.40 crore in Fiscal 2023 to ₹711.43 crore in Fiscal 2024, & ₹505.90 crore for the six months period ended September 30, 2024 and Profit after tax increased by 35.57 per cent from ₹19.81 crore in Fiscal 2023 to ₹26.87 crore in fiscal 2024 & ₹18.25 for the six months period ended September 30, 2024.
As per the CARE Report mentioned in the DRHP, in CY24 the Indian jewellery market is expected to grow by 13.1% y-o-y to Rs.4,653 billion. Furthermore, the market is expected to grow at a compounded annual growth rate (CAGR) of 9.7% between CY23 and CY29 to ₹7,162 billion. In India, the surge in demand for gold jewellery can be attributed to the growing middle-class population and their increasing disposable income levels. The trend is especially prominent in urban areas where economic growth has enhanced financial independence and purchasing power.
In the six months period ended September 30, 2024, Fiscal Years 2024, 2023 and 2022, Shanti Gold International Limited catered to 332, 372, 379, and 271 customers, respectively and revenue from operations from the sale of jewellery and labour charges received was ₹505.90 crore, ₹711.43 crore, ₹679.40 crore and ₹428.34 crore, respectively, translating to average compounded annual growth rate of 28.88 per cent.
