Shanti Gold International IPO

Incorporated in 2003, Shanti Gold International Limited is a Mumbai-based manufacturer specializing in high-quality 22kt CZ casting gold jewelry. The company produces a wide range of intricately designed jewelry including bangles, rings, necklaces, and sets suitable for weddings, festive occasions, and daily wear, catering to various price points. It operates from a 13,448.86 sq. ft. manufacturing facility in Andheri East, Mumbai, with an annual production capacity of 2,700 kg. Leveraging advanced machinery and outsourced manual craftsmanship such as stone setting, the company ensures precision and consistent quality through its in-house design, production, and packaging processes.

Shanti Gold employs 80 CAD designers who create over 400 gemstone-studded CZ gold designs monthly, utilizing cutting-edge design technology. By November 15, 2024, the company had 225 employees and had expanded its presence to 13 Indian states and one union territory, with branches in key cities like Mumbai, Bangalore, Chennai, and Hyderabad. Over the years, it has built lasting relationships with leading jewelry brands such as Joyalukkas, Lalitha Jewellery, Alukkas Enterprises, Vysyaraju Jewellers, and Shree Kalptaru Jewellers, reinforcing its position in the Indian gold jewelry manufacturing sector.

Shanti Gold International IPO Strengths

• The company offers a wide range of intricately designed jewellery, including bangles, rings, necklaces, and entire sets, catering to occasions from weddings to daily wear across multiple price points.
• Shanti Gold operates with a streamlined supply cycle capable of delivering from design to finished product in under two weeks, making it a preferred supplier for major retailers needing rapid product development.
• With an installed capacity of up to 2,700 kg per annum and plans to expand with a new Jaipur facility adding 1,200 kg, Shanti Gold is poised to meet rising market demand and scale operations efficiently.
• Besides a robust domestic presence, Shanti Gold serves four international markets and plans targeted expansion in the USA and UAE through global exhibitions and partnerships with distributors and retailers.
• The business benefits from promoters with deep industry relationships and expertise, contributing to its credibility, market access, and capacity for strategic growth in an expanding Indian and global gold jewellery market.

Shanti Gold International IPO Risks

• The business requires maintaining high inventory levels and has shown negative net cash flow from operating activities over several recent fiscal years. Sustained negative operating cash flow could impact day-to-day funding and limit flexibility to manage growth or expenses.
• Most operations are concentrated at the Andheri facility. Any significant disruption—such as technical issues, labor shortages, or regulatory actions—could severely impact production and business continuity.
• Gold and related material prices are volatile. Sharp increases can escalate costs and compress margins, while price declines may depreciate inventory value and hurt earnings.
• Planned expansion with a new Jaipur facility brings execution risks, including cost overruns, project delays, and integration challenges, which could strain resources and delay realisation of projected benefits.
• Sales are subject to significant seasonality and variation in end-consumer demand. Poor performance in a major season can disproportionately affect annual results and inventory management.
• The business requires specialized craftsmen and designers. Loss of critical skilled employees or high attrition could disrupt production, delay new product launches, and affect quality.