Shankesh Jewellers opens ₹367 crore IPO at ₹88–93 per share
Mumbai-based B2B handcrafted gold jewellery maker Shankesh Jewellers has opened its ₹367 crore IPO, comprising a fresh issue and offer for sale. The company plans to use fresh proceeds for working capital, debt repayment and general corporate purposes; grey-market signals indicate modest potential listing gains.
What happened
Mumbai-based B2B handcrafted gold jewellery maker Shankesh Jewellers opened its Rs 367 crore IPO at Rs 88-93 per share. Proceeds will fund working capital, debt
Key facts
- Price band: Rs 88-93 per share
- Issue size: Rs 367 crore
- Fresh issue: 2.9482 crore shares worth Rs 274 crore
- OFS: up to 1 crore shares worth Rs 93 crore
- Anchor raise: Rs 110.15 crore from 14 investors
- FY ended March 31, 2025 revenue: Rs 1,630.93 crore; net profit: Rs 106.68 crore
- FY 2024-25 revenue: Rs 1,403.94 crore; net profit: Rs 40.31 crore
- Post-issue market capitalisation: about Rs 1,370 crore
- GMP: Rs 3-5, implying 3-6% listing gains
- Retail allocation: 35%; QIB: 50%; NII: 15%
Why this matters
The deal highlights public-market funding as a route for B2B jewellery makers to finance inventory, reduce debt and pursue scale, making well-capitalized regional manufacturers more credible partnership or acquisition candidates.
What to watch
- Subscription split across QIB, NII and retail categories during August 18–20.
- Anchor investor roster, institutional allocation quality and final issue-price demand.
- Grey-market premium trend versus the ₹93 upper price band before allotment and listing.
- Gold-price movement, INR volatility and borrowing costs, which affect inventory funding needs and jewellery demand.
- Post-listing trading volumes, free-float liquidity and whether the stock holds above issue price in its first month.
- Changes in receivable days, inventory turnover, debt levels and operating cash flow in the first reported results after listing.
- Festive and wedding-season order intake from B2B retail customers.
- Prioritize fresh-issue proceeds toward inventory funding before peak wedding and festive procurement cycles, while using debt repayment to lower interest expense and improve margins.
- Use listing visibility to deepen relationships with regional jewellery retailers, wholesalers and export-linked buyers rather than competing immediately on direct-to-consumer branding.
- Strengthen disclosures on customer concentration, gold-price hedging, receivables discipline and inventory turns, which will become central to public-market valuation after listing.
- Maintain conservative working-capital policies; IPO-funded expansion can increase gold inventory exposure and receivables risk if demand slows.
- Consider selective capacity, design and distribution investments only after post-IPO demand stability and order-book visibility are established.