Shankesh Jewellers

Incorporated in 2005, Shankesh Jewellers Limited specialises in manufacturing and supplying handcrafted gold jewellery, offering a wide product portfolio spanning 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, rhodium, and rose gold jewellery.

The company distributes its products pan-India to both corporate and non-corporate clients, with a clientele that includes established jewellery houses such as Joyalukkas India Limited, P. N. Gadgil & Sons Limited, Kalyan Jewellers India Limited, Novel Jewels Limited (part of the Aditya Birla Group), and Manoj Vaibhav Gems 'N' Jewellers Limited.

Shankesh Jewellers follows an asset-light model, engaging skilled local karigars and jobworkers for production while retaining design, material sourcing, and delivery in-house. Beyond direct product sales, the company also offers job-work services where clients supply bullion and specific design requirements, with all jewellery BIS-hallmarked as per regulatory guidelines.

With a legacy of over three decades in the handmade jewellery market, the company has built strong relationships with leading jewellery brands by consistently delivering design excellence, craftsmanship, and customised solutions across its two business segments: sales of handcrafted jewellery and custom job-work services.

The Shankesh Jewellers IPO is a bookbuilt mainboard issue aggregating up to ₹367.18 crore, comprising a fresh issue of shares worth up to ₹274.18 crore and an offer for sale of up to ₹93.00 crore. The issue is priced in a band of ₹88 to ₹93 per equity share, with a lot size of 160 shares, and will open on August 18, 2026, closing on August 20, 2026, with listing expected on August 25, 2026 on both the BSE and NSE.

Net proceeds from the fresh issue are earmarked primarily for repayment or prepayment of certain outstanding borrowings worth ₹158.00 crore, along with funding working capital requirements of ₹38.00 crore, with the remainder allocated to general corporate purposes. The company has delivered sharp financial improvement, with profit after tax rising 165% from ₹40.31 crore in FY25 to ₹106.68 crore in FY26, alongside strong revenue growth and a notable jump in EBITDA margin from 4.65% to 9.68% over the same period.

At the upper price band, the issue is priced at a post-issue P/E of 12.81 times FY26 earnings, with a Return on Net Worth of 50.94% and a Price to Book Value of 5.22 times, reflecting a relatively reasonable valuation given the company's strong recent profitability trend. Key strengths cited include established relationships with leading jewellery brands, an asset-light manufacturing model, and a three-decade legacy in handcrafted gold jewellery. Key risks include reliance on a concentrated base of large jewellery-brand clients, exposure to gold price volatility, and the sustainability of the sharp recent margin expansion. Investors may find it useful to benchmark this issue against other recently listed jewellery-sector IPOs, including Lalithaa Jewellery Mart, when evaluating its relative valuation.