Shankesh Jewellers has opened its initial public offering, or IPO, for investors on August 18, 2026. The Mumbai-based jewellery company has set the price band at ₹88 to ₹93 per share. The public offer will stay open until August 20.
The issue size stands at ₹367.18 crore. The offer has two parts: a fresh issue of 2.95 crore shares worth ₹274.18 crore and an offer for sale, or OFS, of 1 crore shares worth ₹93 crore. The company plans to use a large part of the fresh issue proceeds to reduce debt and support its working capital needs.
The IPO has received a mixed view from market experts. Some analysts see value in the company’s customer base, asset-light model and recent profit growth. Others have raised concerns about the role of high gold prices in its recent profit rise. The grey market also points to a modest premium rather than a sharp debut gain.
Price Band And Minimum Investment
Shankesh Jewellers has fixed the IPO price at ₹88 to ₹93 per share. At the upper end of the range, the company has a value of about ₹1,367 crore.
The lot size is 160 shares. A retail investor who applies at the upper price of ₹93 would need at least ₹14,880 for one lot. This makes the issue accessible to many retail buyers, although the final amount paid can vary if the investor receives fewer shares than the applied quantity.
The IPO is a mainboard issue. The shares are proposed to list on both the BSE and NSE on August 25, 2026. The share allotment is expected on August 21.
Grey Market Gives A Mild Signal
The grey market has given a cautious signal before the stock enters the formal market. Shankesh Jewellers shares had a grey market premium, or GMP, of ₹2 on August 18 at 9:33 am, as per NDTV Profit.
With the upper IPO price set at ₹93, the GMP of ₹2 points to an estimated price of ₹95. That equals a premium of about 2.15% over the upper price band.
Business Standard also reported a price of ₹95 in the grey market, which represents a 2.15% premium over ₹93. This is a much smaller premium than the levels seen in some popular IPOs. It suggests that the market does not expect a very large first-day gain at present.
Grey market prices are not official market prices. They can change before the shares reach the stock exchanges. Investors should therefore treat the GMP as a sentiment signal rather than a guarantee of the actual market price.
Early Subscription Shows A Slow Start
The IPO had a cautious start on its first day. NDTV Profit reported that the issue was booked 3% by 10:10 am on August 18.
At that point, the Qualified Institutional Buyers, or QIB, portion had a subscription level of 0.00 times. The non-institutional investor portion stood at 0.02 times, while the retail investor portion was at 0.04 times. The employee portion also had no subscription at that time.
These figures were only early-day numbers and could change before the market closes. The full three-day period gives investors more time to study the company and decide whether the price looks fair.
The muted early response is also in line with the weak grey market premium. Together, these signals show that investors are taking a more careful view of the issue rather than rushing for a quick gain.
What Shankesh Jewellers Does
Shankesh Jewellers is a Mumbai-based B2B gold jewellery company. The firm has more than three decades of experience in handcrafted jewellery.
The company focuses on customised gold jewellery and supplies products to retailers across India. Its main products use 22-karat and 18-karat gold. Its range covers bangles, bridal jewellery, chokers, jhumkas, necklace sets, mangalsutras, rings and combined sets.
The company also offers products in several styles, such as antique, semi-antique, Calcutta, temple and gheru polish. It also deals in yellow gold, rhodium and rose gold jewellery.
Its customer base includes well-known jewellery names such as Joyalukkas India Limited, P. N. Gadgil & Sons Limited, Kalyan Jewellers India Limited, Novel Jewels Limited, Manoj Vaibhav Gems ‘N’ Jewellers Limited and other established jewellery houses.
Business Standard said repeat customers made up about 80% of total customers in FY26. That is an important part of the company’s business model because repeat orders can provide a more stable source of sales.
Asset-Light Business Model
One of the main points in favour of Shankesh Jewellers is its asset-light business model. The company does not rely on a large in-house production setup.
Instead, it works with skilled local karigars and job workers for production. Shankesh Jewellers handles areas such as design, material sourcing and delivery. This structure can help the company control fixed costs and expand its business without the same level of capital needs as a firm with a large production base.
The company also provides job-work services. In such cases, clients provide bullion and design requirements, while Shankesh Jewellers arranges the work. The company states that its jewellery has BIS hallmarks as per the required rules.
Strong Rise In FY26 Profit
The company’s financial results have been one of the main reasons for investor interest.
Total income rose from ₹1,403.94 crore in FY25 to ₹1,630.93 crore in FY26. That was a year-on-year rise of 16%.
Profit after tax, or PAT, rose much faster. It increased from ₹40.31 crore in FY25 to ₹106.68 crore in FY26. That was a sharp rise of 165%.
The difference between revenue growth and profit growth is important. Sales rose at a healthy rate, but profit rose much faster. This shows a major improvement in earnings during FY26.
For the FY24-FY26 period, Business Standard reported a revenue CAGR of 23.9%, EBITDA CAGR of 134.9% and PAT CAGR of 188.4%. EBITDA margin also rose by about 700 basis points to 9.7%.
High Gold Prices Bring A Risk
The sharp rise in profit has one important risk. Some of the profit growth may have come from higher gold prices.
SBI Securities noted that Shankesh Jewellers does not currently hedge its inventory. As gold prices rose sharply, the value of its inventory also rose. This created inventory gains and helped profit rise at a faster pace.
If gold prices become stable, the benefit from such inventory gains may become smaller. SBI Securities therefore expects growth and margins to moderate once gold prices settle.
At the same time, lower interest costs could support future profit. The brokerage expects interest cost savings of about ₹14 crore to help FY27 profit.
IPO Funds Will Reduce Debt
The company plans to use ₹158 crore from the IPO proceeds to repay or pre-pay some borrowings. Another ₹38 crore will go toward working capital needs. The remaining funds will serve general corporate purposes.
Debt reduction is important because it can lower interest costs and improve the company’s balance sheet. If the company uses the funds well, lower debt could provide more room for future business growth.
The working capital allocation also matters because the jewellery business needs a large amount of money for stock and daily operations. Business Standard reported a cash conversion cycle of 81 days in FY26.
Broker Views Remain Divided
Broker views on the IPO are not fully aligned. SBI Securities has a Neutral view and wants to see how the company performs for a few quarters after its market debut. Its main concern is the role of inventory gains in recent profit growth.
Master Capital, on the other hand, has given a “subscribe for long-term” view. It sees potential in the company’s supplier links, customer base and ability to gain more share in the jewellery market.
AnandRathi has also viewed the valuation as fair. At ₹93 per share, the company trades at about 12.8 times FY26 earnings, a level that the brokerage sees as reasonable based on its growth, profit improvement and business model.
What Investors Need To Watch
The Shankesh Jewellers IPO comes with both strengths and risks. The company has a strong list of customers, a repeat customer share of about 80%, an asset-light model and sharp profit growth.
At the same time, investors need to watch gold prices, inventory gains, debt levels and working capital needs. The muted GMP also suggests that a large short-term gain is not the main market expectation at present.
The IPO closes on August 20. Allotment is expected on August 21, while the shares are proposed to debut on both BSE and NSE on August 25.
Shankesh Jewellers has entered the public market with a ₹367.18 crore IPO and a clear plan to reduce debt and support its business. Its recent financial results look strong, but the key question is whether the company can maintain that profit growth after the effect of high gold prices becomes smaller. For investors, that long-term test may matter far more than the modest grey market premium seen on August 18.
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