Company and Document Overview
Shanti Gold International Limited (BSE: 544459, NSE: SHANTIGOLD) has announced a significant rights issue through regulatory filings submitted to BSE and NSE on July 31, 2026. The company is raising ₹998.35 million through issuance of 46,43,471 equity shares at ₹215 each (including ₹205 premium) in a 19:295 ratio to eligible shareholders as of the record date of August 6, 2026.
Rights Issue Structure and Timeline
The issue opens on August 14, 2026 and closes on August 21, 2026, with possible extension up to 30 days. Key dates include last date for on-market renunciation (August 18, 2026), finalization of basis of allotment (August 24, 2026), allotment date (August 25, 2026), and listing expected by August 26, 2026. The issue requires minimum 90% subscription to proceed and is not underwritten.
Use of Proceeds and Financial Context
Net proceeds of approximately ₹993.35 million (after ₹5 million issue expenses) will fund working capital requirements (₹800 million) and general corporate purposes (up to ₹193.35 million). The company reported strong financial performance with FY2026 revenue of ₹20,284.97 million and net profit of ₹1,401.54 million, representing significant growth from previous years.
Application Process and Eligibility
Applications must be made exclusively through ASBA facility with no other payment modes accepted. Rights equity shares will be allotted only in dematerialized form to the same depository account where existing shares were held. Specific procedures apply for resident physical shareholders, NRIs, FPIs, and US persons are excluded from participation. PAN is mandatory for all applications.
Promoter Participation and Allocation Priority
Promoters (Pankajkumar H Jagawat, Manojkumar N Jain, and Shashank Bhawarlal Jagawat) have confirmed they will not subscribe to their rights entitlement, renounce their rights, or apply for additional shares. Allotment priority follows: full allotment to eligible shareholders, fractional entitlements, additional shares to shareholders, then renouncees, with any surplus allocated at Board's discretion.
Regulatory Compliance and Risk Factors
The issue complies with SEBI ICDR Regulations, Companies Act 2013, FEMA rules, and RBI foreign investment guidelines. Key risks include customer concentration (top 10 customers contributed 44.82% of FY2026 revenue), regional concentration in Southern India, gold price dependence, negative operating cash flows, and working capital requirements. The company faces contingent liabilities of ₹33.63 million and various tax proceedings.
Intermediaries and Listing Arrangements
Aryaman Financial Services serves as Book Running Lead Manager, Big Share Services as Registrar, ICICI Bank as Banker to the Issue, with Acuite Ratings as Monitoring Agency. The company has received in-principle listing approvals from BSE (designated exchange) and NSE, with rights entitlements having separate ISIN: INE06ZD20017.
Withdrawal and Refund Provisions
The company reserves right to withdraw the issue before opening date. If withdrawn after opening, public notice will be issued within 2 working days. If minimum 90% subscription is not achieved, full refunds must be processed within 4 days of closing with 15% annual interest for delays. All issue proceeds will be transferred to a separate bank account with utilization disclosed in balance sheets.