Company ennjoys string relationships with brabds such as Joyalukkas India Limited, Lalithaa Jewellery Mart Limited, Alukkas Enterprises Private Limited, Vysyaraju Jewellers Private Limited and Shree Kalptaru Jewellers Private Limited
MUMBAI, Jan 14 (The CONNECT) – High-quality 22kt CZ casting gold jewellery firm Shanti Gold International Limited has filed its 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 a face value of Rs 10 per equity share is entirely a fresh issue of up to 18 million equity shares.
The proceeds from the fresh issue to the extent of Rs 45.83 crore will be used for funding of capital expenditure requirements towards setting up of the proposed Jaipur facility; Rs 190 crore will be allocated for funding the company’s incremental working capital requirements; Rs 20 crore will be utilised for the repayment and/or pre-payment, in full or part, of certain borrowings availed by the Company; and general corporate purposes.
The Issue is being made through the book-building process, wherein not more than 50% of the net issue shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15% of the offer shall be available for allocation to non-institutional bidders, and not less than 35% of the offer shall be available for allocation to retail individual bidders.
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.
Established in 2003 as a partnership firm under the name M/s Shanti Gold by the promoters, Pankajkumar H. Jagawat and Manojkumar N. Jain, Shanti Gold International Limited is known for its craftsmanship, innovative designs, and robust manufacturing capabilities. Its manufacturing facility spans over 13,448.86 square feet in Andheri East, Mumbai, and is equipped to produce a variety of jewellery with precision and efficiency. As of now, the company has an installed manufacturing capacity of 2,700 kg per annum. With a team of 80 professionals utilizing computer-aided design (CAD) technology, Shanti Gold International develops over 400 designs per month on a regular basis.
The company maintains strong client relationships with Joyalukkas India Limited, Lalithaa Jewellery Mart Limited, Alukkas Enterprises Private Limited, Vysyaraju Jewellers Private Limited, Shree Kalptaru Jewellers Private Limited, and numerous other brands.
It has expanded its operations from a single city in Maharashtra to serving 13 states, one union territory, and four countries abroad, namely the UAE, Singapore, Qatar, and the USA.
All gold jewellery products produced by Shanti Gold International Limited are hallmarked by the Bureau of Indian Standards (BIS). The company is also a member of the Gem & Jewellery Export Promotion Council and holds lifetime membership in the All-India Gems and Jewellery Trade Federation.
Shanti Golds’ Revenue from Operations increased by 4.71% from Rs. 679.40 crore in Fiscal 2023 to Rs. 711.43 crore in Fiscal 2024, & Rs. 505.90 crore for the six months period ended September 30, 2024 and Profit after tax increased by 35.57% from Rs. 19.81 crore in Fiscal 2023 to Rs. 26.87 crore in fiscal 2024 & Rs. 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 Rs 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 Rs. 505.90 crore, Rs. 711.43 crore, Rs. 679.40 crore and Rs. 428.34 crore, respectively, translating to average compounded annual growth rate of 28.88%.
