Shankesh Jewellers opens ₹367 crore IPO, targeting debt reduction and working capital
Mumbai-based gold-jewellery wholesaler Shankesh Jewellers has opened its ₹367 crore IPO at ₹88-₹93 a share. The issue combines a ₹274.18 crore fresh issue and ₹93 crore offer for sale; proceeds are earmarked for debt repayment, working capital and general corporate purposes. Bidding runs August 18-20, with listing expected August 25.
What happened
Mumbai-based gold-jewellery wholesaler Shankesh Jewellers opened its ₹367-crore IPO. Brokerages cited customer relationships and valuations positively but
Key facts
- ₹367 crore IPO
- ₹274.18 crore fresh issue
- ₹93 crore offer for sale
- ₹88-₹93 price band
- 160 shares per lot
- 2.15% grey-market premium
- 81-day FY26 cash conversion cycle
- FY26 EBITDA margin 9.7%
- FY26 P/E 12.8x
Why this matters
Shankesh’s public-market funding highlights investor appetite for scaled jewellery distribution platforms, while its balance-sheet repair focus may make it a stronger future partner, competitor or acquisition candidate.
What to watch
- Subscription levels across QIB, HNI and retail investor categories.
- Grey-market and listing-day premium versus the ₹93 upper-band price.
- Net debt, interest expense and working-capital cycle in the first two post-listing results.
- Gold-price direction and volatility relative to reported inventory gains.
- EBITDA margin retention near the stated 9.7% level after adjusting for inventory mark-ups.
- Receivable days, inventory days and any increase in customer concentration.
- Prioritize debt repayment early to demonstrate a visible reduction in interest expense and leverage.
- Use fresh working capital to improve inventory turns and retailer fulfillment rather than materially expanding speculative gold inventory.
- Disclose inventory valuation sensitivity, hedging practices, receivable aging and the split between operating profit and gold-price-driven gains.
- Build investor confidence through quarterly reporting on normalized gross margin, finance cost and return on capital after listing.