Shanti Gold International Ltd. shares fell over 1% in early trade on Tuesday following the completion of its rights issue allotment. According to the company's exchange filing dated August 24, 2026, the company allotted 46,43,471 fully paid-up equity shares at ₹215 per share on a rights basis. The issue price includes a premium of ₹205 per share, with the rights issue opening on August 14, 2026 and closing on August 21, 2026. The stock was trading at ₹270.7 on NSE, down from its previous close of ₹270.5, reflecting investor concerns about the additional share supply. The allotment raised approximately ₹99.83 crore to fund working capital and growth initiatives, with the company's paid-up equity share capital increasing from ₹72.09 crore to ₹76.74 crore. The rights issue ratio was set at 19 shares for every 295 shares held, with the company having 7,20,96,000 outstanding equity shares before the allotment, which would increase to 7,67,39,471 assuming full subscription.
Shanti Gold International Limited delivered exceptional Q1FY27 results, demonstrating remarkable growth momentum across key financial metrics. According to the latest company disclosure, revenue from operations surged 144.69% year-on-year to ₹716.38 crore, driven by a 61-62% increase in volume and price appreciation. Profit after tax (PAT) rose 46.94% to ₹50.48 crore, while EBITDA grew 39% to ₹71.45 crore, resulting in a margin of 9.97%. Management noted that approximately 2-2.5 percentage points of this margin were derived from unrealized gains due to a change in inventory valuation method from FIFO to Weighted Average Cost. Excluding this impact, the underlying sustainable EBITDA margin is guided at 7.5-8% for FY27. The strong quarterly performance has contributed to the stock's positive momentum over recent periods, with the company maintaining its focus on operational excellence and market positioning.
The company is implementing a comprehensive capacity ramp-up strategy to support its growth trajectory, with significant progress already achieved. As reported by the company, the new Marol facility commenced operations during Q1FY27, supporting the company's expansion initiatives. A new Jaipur plant with ₹47 crore capex is expected to become operational between mid-November and December 2026, further enhancing production capabilities. The funds raised from the rights issue will support ongoing capacity expansion and meet increasing market demand, with the additional equity base from the rights issue supporting future expansion plans. The company's strategic focus on capacity enhancement represents a move to strengthen its operational foundation for sustained growth in the competitive gold sector.
Despite Tuesday's decline, Shanti Gold has delivered impressive returns over recent periods. According to market data, the stock has gained 5.97% over one week and 27.31% over one month, while rallying 41.50% in 2026 itself. The stock is currently trading at ₹270.7 on NSE, with the recent decline attributed to investor tracking of the impact of additional shares from the rights issue on trading performance and future growth prospects. The company's strong operational performance and capacity expansion initiatives continue to support its positive market outlook despite short-term volatility.
The combination of strong Q1 performance, new capacity additions, and expanding market presence creates a positive outlook for the company's earnings trajectory. Following the rights issue allotment, the company's paid-up equity share capital increased from ₹72.09 crore to ₹76.74 crore, with the total number of outstanding equity shares rising from 7.21 crore to 7.67 crore. The newly allotted shares will rank pari-passu with existing equity shares, with necessary corporate actions for crediting to demat accounts to be initiated in due course. The company's focus on operational excellence, capacity expansion, and strategic growth initiatives positions it well for sustained growth in the competitive gold sector, with the new Jaipur facility expected to contribute materially to the company's expansion plans.
