The Rs 367.18-crore initial public offering of Mumbai-based B2B jewellery company Shankesh Jewellers entered its third and final day of bidding on August 20, with investor interest showing some improvement. In the grey market, the IPO is currently commanding a 3% premium, indicating expectations of a modestly positive or flat listing.
On Day 2, the issue was subscribed 94% overall. The retail investor portion witnessed stronger demand, with subscription reaching 1.13 times the shares reserved for that category.
The three-day bidding period opened on August 18 and will close today, August 20, 2026.
The Rs 367.18-crore IPO comprises a fresh issue and an offer for sale (OFS). The fresh issue consists of 2.95 crore shares worth Rs 274.18 crore, while the OFS includes 1 crore shares valued at Rs 93 crore.
The IPO has a price band of Rs 88–Rs 93 per share, with a lot size of 160 shares. At the upper end of the price band, retail investors will need to invest a minimum of Rs 14,880 for one lot.
The allotment is expected to be finalized on August 21, 2026. Shankesh Jewellers is scheduled to list on both the NSE and BSE, with a tentative listing date of August 25, 2026.
Aryaman Financial Services Ltd. is the book-running lead manager for the issue, while Kfin Technologies Ltd. is serving as the registrar.
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Shankesh Jewellers IPO Subscription Status
On the second day of bidding, the Shankesh Jewellers IPO was subscribed 94% overall, with investors bidding for nearly 2.76 crore shares on offer.
The Retail Individual Investors (RII) category witnessed strong interest, with the portion subscribed 1.13 times against 1.38 crore shares reserved for retail investors.
The Non-Institutional Investors (NII) segment was subscribed 76%, compared with 59.22 lakh shares available for subscription.
Meanwhile, the Qualified Institutional Buyers (QIB) portion also saw 76% subscription against the 78.96 lakh shares on offer.
Shankesh Jewellers IPO GMP Today
The Shankesh Jewellers IPO is currently commanding a grey market premium (GMP) of Rs 3 per share, or around 3% above the upper price-band of Rs 93.
At the current GMP, the estimated listing price is around Rs 96 per share, implying a potential listing gain of approximately Rs 3 per share.
However, GMP is an unofficial market indicator and can fluctuate significantly before listing. Investors should therefore not base their investment decision solely on grey market trends. Instead, they should consider the company's fundamentals, valuation, financial performance and growth prospects before subscribing to the IPO.
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Objects of the Issue
The Company proposes to utilise the net proceeds from the issue to strengthen its financial position and meet its ongoing business requirements. A significant portion of the net proceeds, amounting to Rs 158.00 crore, will be utilised for the repayment and/or pre-payment, in full or in part, of certain borrowings. This is expected to reduce the company’s outstanding debt obligations and further strengthen its balance sheet.
In addition, Rs 38.00 crore of the net proceeds is proposed to be deployed towards funding the company’s working capital requirements, thereby supporting its day-to-day operations and ensuring adequate liquidity. The balance of the Net Proceeds will be utilised towards general corporate purposes.
Financial Performance
Shankesh Jewellers Ltd. delivered a strong financial performance in FY26, with total income rising 16% year-on-year from Rs 1,403.94 crore in FY25 to Rs 1,630.93 crore. The growth reflects a healthy expansion in the company’s business operations and highlights the continued momentum in its revenue performance.
Profitability witnessed a significantly sharper improvement, with profit after tax (PAT) surging 165% from Rs 40.31 crore in FY25 to Rs 106.68 crore in FY26. The substantial increase in PAT, far outpacing the growth in revenue, indicates a marked improvement in the Company’s earnings performance and overall profitability during the year.
About Shankesh Jewellers Ltd.
Incorporated in 2005, Shankesh Jewellers Limited is engaged in the business of manufacturing and supplying customised handcrafted gold jewellery. The company specialises in 22-karat and 18-karat gold jewellery and offers a wide product portfolio comprising bangles, bridal jewellery, chokers, jhumkas, necklace sets, mangalsutras, rings and combined sets across categories such as antique, semi-antique, Calcutta, temple, gheru polish, and yellow gold, rhodium and rose gold jewellery.
The company distributes its products across India to both corporate and non-corporate clients. Its clientele includes established jewellers such as Joyalukkas India Limited, P. N. Gadgil & Sons Limited, Kalyan Jewellers India Limited, Novel Jewels Limited (Aditya Birla Group), Manoj Vaibhav Gems ‘N’ Jewellers Limited, and other established jewellery houses.
Shankesh Jewellers follows an asset-light business model by engaging skilled local karigars and job workers for production, while managing design, material sourcing and delivery in-house. In addition to product sales, the company also provides job-work services under which clients provide bullion and specific design requirements for manufacturing. The company states that its jewellery is BIS-hallmarked in accordance with applicable regulatory guidelines.
Should You Subscribe to the Shankesh Jewellers IPO?
The IPO appears to offer a combination of strong recent earnings growth, an established B2B customer base and an asset-light operating model. The proposed use of IPO proceeds to reduce debt could also strengthen the company’s balance sheet.
Valuation, however, remains an important consideration. According to an AnandRathi research report, Shankesh Jewellers is valued at around 12.8x P/E based on FY26 earnings.
AnandRathi considers the valuation fairly priced, citing the company’s strong financial growth, improving profitability, asset-light business model and established position in the B2B handcrafted gold jewellery segment. The brokerage has assigned a “Subscribe: Long Term” rating to the IPO.
For investors, the key takeaway is that the issue appears to be more suited to those looking at the company’s longer-term growth prospects rather than chasing a quick listing gain. The current GMP points to only a modest potential listing premium, while the company’s sharp improvement in profitability provides a more compelling part of the investment story.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
