The IPO of Shanti Gold International (SGIL) has opened on 25 July. It is Mumbai’s Gold Manufacturing Company, which specializes on creating a 22-carat cubic Jirkonia (CG)-innovative jewelery. This IPO of the company is Rs 360 crore. The company will issue new share to investors in the issue. The company will use the money received from the issue to fulfill its business.
Shanti Global International (SGIL) is going to set up a manufacturing plant in Jaipur. The company is increasing its production capacity. It is also expanding its product portfolio. This will help the company to increase its sales. The company has a good management team, which is in a strong position to take advantage of growth occasions. SGIL works on a business-to-business model.
The company supplies 22 carat CZ i.e. Cubic Zirconia Stead Designing, Manufacturing and Wholesale. CG looks like a natural diamond, but it is economical. People’s interest in the use of CZ is increasing instead of diamond -studded gold jewelery. The company has complete control over the value chain. This includes casting, finishing and final packaging from computer aided designing. This takes less time to reach the product of the product and also maintain quality.
The company’s strength is that it introduces jewelery of new and innovative design. It has an in-house design team of 79 people who prepare more than 400 design or style jewelery every month. This helps the company to introduce jewelery for customers according to the trend. Because of this, SGIL becomes a reliable partner for many big jewelery companies of India.
The company has a major integrated manufacturing unit in Mumbai. It has a capacity of 2,700 kg annually. Its utilization ratio was 58 per cent in FY25. Out of the money received from the IPO, the company will use about Rs 200 crore to meet the needs of working capital. This will help the company to increase production in the Mumbai plant. The company is setting up a 50,000 sq ft plant in Jaipur. Its capacity will be 1,200 kg. This will increase the total production capacity of the company to 3,900 kg annually.
SGIL exports its products in many countries. These include UAE, Singapore and America. The company wants to increase its sales abroad. For this, she participates in exhibitions and is trying to increase global visibility to attract institutional buyers. SGIL can be compared to Sky Gold & Diamonds (SGDL) and Utssav CZ Gold Jells (Utsav Gold).
SGI and Utsav are close to each other according to the gold size. But Sky Gold and Diamonds is a big company. However, SGISL’s margin profile is more than Ebitda SGDL and Uj Gold. The big reason for this is that bridal jewelery is high in its product portfolio. Bridal jewelery has more margin.
The valuation of SGIL and Utsav Gold is almost the same. However, SGIL has more capacity to make profits. Apart from this, the price of shares in SGIL IPO is at a discount of 45 percent against SGDL. Therefore, investors can invest money in this IPO. The price band of shares in this IPO is Rs 189-199. This Ikhu can be invested till July 29.