Shanti Gold IPO Subscribed 80.80 Times, GMP Hints at Big Listing

The initial public offering (IPO) of Shanti Gold International has closed on July 29, and the response from investors was very strong. People from all investor groups showed big interest in this IPO, making it one of the most talked-about IPOs this season.

What Is an IPO?

An IPO is when a company sells its shares to the public for the first time to raise money. People who buy these shares become part-owners of the company. Shanti Gold International opened its IPO to the public on July 25, and it remained open for three days.

Price and Lot Size

The IPO was priced between ₹189 to ₹199 per share. The company aimed to raise ₹360 crore by offering 1.81 crore new shares. Investors could buy these shares in groups of 75 shares per lot. That means a small investor needed at least ₹14,175 to buy one lot at the top price.

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Why Is the Company Raising Money?

Shanti Gold International plans to use the money from the IPO for several purposes:

• To build a new facility in Jaipur
• To pay for working capital
• To repay old loans
• For other general business needs

This money will help the company grow, improve its operations, and become stronger in the market.

Big Demand from Investors

The IPO was subscribed 80.80 times. This means that people wanted over 102 crore shares, even though the company was only offering 1.26 crore shares for sale.

• NII (Non-Institutional Investors) segment was subscribed 151.18 times
• QIB (Qualified Institutional Buyers) segment saw 117.33 times subscription
• Retail investors, like regular people, subscribed 29.77 times

This shows that people from all sides had high confidence in the company.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) is an unofficial price at which the shares are being traded before they are officially listed on the stock exchange. As of July 29, the GMP for Shanti Gold International was ₹37 per share. This means the shares could list at around ₹236, which is an 18.6% premium over the top issue price of ₹199.

But investors must remember that GMP keeps changing and should not be the only reason to invest. It is better to look at the company’s real business and long-term potential.

When Will You Know About Allotment?

Now that the IPO is closed, the next step is the allotment. This is when investors find out whether they got the shares or not. The expected date for IPO allotment is July 30. After that, if you get the shares, they will be credited to your Demat account, and the company will soon list the shares on the stock exchange.

About Shanti Gold International

Shanti Gold International is a leading jewellery manufacturer. It makes 22kt CZ casting gold jewellery and has one of the largest production capacities in the country. The company is known for its beautiful designs and high-quality pieces, which include:

• Bangles
• Rings
• Necklaces
• Full jewellery sets

The jewellery is made for daily wear, festivals, and special occasions like weddings. Shanti Gold offers products in different price ranges, making it easy for people from all income levels to find something they like.

The huge demand for the Shanti Gold International IPO shows that investors believe in the company's future. With strong business plans and a solid reputation in the jewellery market, the company is ready to grow even bigger. The money raised through the IPO will help the company build more, serve better, and expand further.

However, while the GMP looks promising, smart investors should also look at the company’s actual business, past performance, and long-term plans before making any decisions.