Shankesh Jewellers Limited's initial public offering (IPO) has opened for subscription today, with shares commanding a mild 2% premium in the grey market over the upper end of the issue price band. The IPO, valued at Rs 367.18 crore, comprises a fresh issue and an offer for sale, with a price band set at Rs 88–93 per share.
The IPO includes a fresh issue of 2.95 crore shares worth Rs 274.18 crore and an offer for sale of 1 crore shares aggregating to Rs 93 crore. Retail investors can apply for a minimum lot size of 160 shares, requiring an investment of Rs 14,880 at the upper price band. The allotment is expected to be finalized on August 21, 2026, with a tentative listing date on August 25, 2026, on both NSE and BSE.
Aryaman Financial Services Ltd. is the book-running lead manager for the issue, while Kfin Technologies Ltd. is acting as the registrar. The company plans to use the net proceeds to strengthen its financial position, with Rs 158.00 crore allocated for debt repayment and Rs 38.00 crore for working capital requirements.
Shankesh Jewellers reported a robust financial performance in FY26, with total income rising 16% year-on-year to Rs 1,630.93 crore. Profit after tax surged 165% to Rs 106.68 crore, indicating significant improvement in profitability.
The IPO is valued at approximately 12.8x P/E based on FY26 earnings, which AnandRathi considers fairly priced. The brokerage has assigned a "Subscribe: Long Term" rating, highlighting the company's strong financial growth and asset-light business model.
Background
Shankesh Jewellers, incorporated in 2005, specializes in customized handcrafted gold jewellery and has established a strong B2B customer base. The company's asset-light model and strategic use of IPO proceeds aim to enhance its financial stability and operational efficiency.
For investors, the IPO offers potential for long-term growth rather than immediate listing gains. The focus remains on the company's improved profitability and strategic use of proceeds to reduce debt and support operations.
