IPO closes on 20 Aug'26
Shankesh Jewellers Limited
Minimum Investment
₹ 14,880 / 160 shares
Our Verdict:
Neutral
- Shankesh Jewellers is a Mumbai (Zaveri Bazar)-based B2B hand-crafted gold jewellery manufacturer supplying corporate clients (including Kalyan Jewellers, Joyalukkas and P.N. Gadgil & Sons) and non-corporate jewellers across India; total income grew from ₹1,403.94 crore (FY25) to ₹1,630.93 crore (FY26), and PAT jumped 165% from ₹40.31 crore to ₹106.68 crore.
- EBITDA margin more than doubled from 4.65% (FY25) to 9.68% (FY26) — a sharp, single-year improvement that is the main driver of the profit jump, and worth confirming isn't a one-off before assuming it's the new normal.
- Price Band ₹88–₹93; Issue of ₹367.18 crore (₹274.18 crore Fresh Issue + ₹93 crore Offer for Sale); Lot Size 160 shares. Anchor Aug 17, Opens Aug 18, Closes Aug 20, Allotment Aug 21, Listing Aug 25, 2026 on BSE/NSE. GMP ~₹5 (~5.4%) as of Aug 17 — a modest premium.
- 100% of production is outsourced to third-party Jobworkers/Karigars (fully asset-light, no in-house manufacturing), the business carries meaningful debt (~₹158 crore of proceeds earmarked for repayment), and product returns have grown faster than revenue — ₹117.76 crore returned in FY26 versus ₹46.27 crore in FY24.
- The FY26 profit surge, an asset-light model, and a reasonable ~12.8x post-issue P/E make the numbers look attractive on the surface, but the sharp margin swing, rising geographic concentration (top 5 states now 67.84% of revenue), full dependence on third-party production, and no listed peer for comparison mean this is best sized as a smaller, closely watched position rather than a high-conviction bet until a few more quarters confirm FY26 wasn't a one-off.
About the company
Founded in
1 Jan'05
Managing director
Manoj Kantilal Jain
- Shankesh Jewellers is a Mumbai (Zaveri Bazar)-based B2B manufacturer of hand-crafted 22-karat and 18-karat gold jewellery, offering bangles, bridal jewellery, chokers, jhumkas, necklace sets, mangalsutras and rings across antique, semi-antique, Calcutta, temple and gheru-polish categories.
- The Company follows an asset-light model, outsourcing production to third-party Jobworkers who employ skilled Karigars, while managing design, sourcing, quality control and delivery in-house; it earns revenue both from finished jewellery sales and job work services for clients supplying their own bullion.
- Shankesh Jewellers supplies corporate clients including Kalyan Jewellers, Joyalukkas and P.N. Gadgil & Sons alongside non-corporate jewellers across 21 states, with Maharashtra as its largest state market (25.46% of FY26 revenue) and the top 5 states together contributing 67.84% of FY26 revenue.
- Promoters: Kantilal Kheemraj Jain (Chairman), Mahavir Kantilal Jain (Whole-time Director) and Manoj Kantilal Jain (Managing Director); promoter/promoter group holding is expected to reduce from 95.48% pre-Offer to 69.53% post-Offer.
STRENGTHS
- Established Corporate Client Relationships: Supplies established jewellery brands including Kalyan Jewellers, Joyalukkas and P.N. Gadgil & Sons, alongside non-corporate jewellers across India.
- Revenue and Profit Growth: Total income grew from ₹1,403.94 crore (FY25) to ₹1,630.93 crore (FY26); PAT grew from ₹40.31 crore to ₹106.68 crore over the same period.
- Asset-Light Manufacturing Model: Outsources all production to third-party Jobworkers who engage skilled Karigars, allowing the Company to focus on design, sourcing, quality control and delivery without owning manufacturing infrastructure.
- Diversified Product Portfolio: Offers bangles, bridal jewellery, chokers, jhumkas, necklace sets, mangalsutras and rings across antique, semi-antique, Calcutta, temple and other traditional categories in 22-karat and 18-karat gold.
- Multi-State Distribution: Present across 21 states, with two revenue streams — sale of finished jewellery and job work services for clients supplying their own bullion.
RISK FACTORS
- Third-Party Production Dependency: The Company is fully dependent on third-party Jobworkers and the Karigars they employ for all production; disruptions, quality failures or a shortage of skilled Karigars could adversely affect the business.
- Geographic Concentration: The top 5 states (Tamil Nadu, Maharashtra, Uttar Pradesh, Bihar and Odisha) contributed 67.84% of FY26 revenue, up from 62.00% in FY24.
- Rising Product Returns: Products returned by customers amounted to ₹117.76 crore in FY26, up from ₹46.27 crore in FY24, reflecting quality-standard sensitivity built into the business.
- Margin Volatility: EBITDA margin more than doubled from 4.65% (FY25) to 9.68% (FY26); the sharp swing raises the question of whether the improvement is structural or a one-off.
- Indebtedness and Cash Flow Volatility: The Company has incurred significant borrowings, with ~₹158 crore of issue proceeds earmarked for debt repayment, and has reported negative operating and investing cash flows in past fiscals.
Financials
All Values are in Cr.
Issue details
Issue type
Mainboard
Issue size
₹ ₹367.18 crore
Fresh Issue
₹ ₹274.18 crore
OFS
₹ ₹93 crore
Price range
₹ 88 - 93
Lot size
160 shares
Issue Objective
- Net Proceeds from the Fresh Issue (₹274.18 crore) are proposed to be used for: (i) repayment/prepayment of certain outstanding borrowings (~₹158 crore); (ii) funding working capital requirements (~₹38 crore); and (iii) general corporate purposes (balance amount, capped at 25% of Gross Proceeds). *FY24 revenue is derived from the top-5-states disclosure (62.00% = ₹658.30 crore); FY24 PAT was not separately disclosed in available sources.
Dates
Bidding open
18 Aug'26
Bidding close
20 Aug'26
Allotment date
21 Aug'26
Refund date
22 Aug'26
Listing
25 Aug'26
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document (PDF)
© 2026 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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