Shankesh Jewellers IPO opens today: Should you subscribe to it? What brokerages & GMP suggest

The initial public offering (IPO) of Shankesh Jewellers opens for subscription on Tuesday, August 18. The jewellery player is offering its shares in the range of Rs 88-93 apeice and investors can apply for minimum 160 equity shares and its multiples thereafter. The issue will close for subscription Thursday, August 20.

The IPO of Shankesh Jewellers includes a fresh share sale of 2,94,82,000 equity shares worth Rs 274 crore and an offer-for-sale (OFS) of up to 1 crore equity shares worth Rs 93 crore. It is eyeing to raise a total of Rs 367 crore from its IPO. The net proceeds from the issue shall be utilized towards funding working capital requirements, repayment of debt, and general corporate purposes.

Incorporated in 2005, Mumbai-based Shankesh Jewellers is engaged in the business of manufacturing and providing customised handcrafted gold jewellery. It specialises in 22-karat and 18-karat gold jewellery, offering a wide product portfolio including bangles, bridal jewellery, chokers, jhumkas, necklace sets, mangalsutras, rings, and combined sets across categories.

Ahead of its IPO, Shankesh Jewellers raised Rs 110.15 crore from 14 anchor investors as it allocated 1,18,44,600 equity share for Rs 93 apiece. Its anchor book included names like Tiger Strategies Fund, Zeal Global Opportunities, Neeta Bloom VCC, Uni Growth Fund, ASAS Global Fund, Venus Investments VCC, Nexus Global Opportunities, Compact Structure Fund and others.

Shankesh Jewellers reported a net profit of Rs 106.68 crore, with a revenue of Rs 1,630.93 crore for the financial year ended on March 31, 2025. It clocked a net profit of Rs 40.31 crore with a revenue of Rs 1,403.94 crore for the financial year 2024-25. At the current valuations, it commands a market capitalization of close to Rs 1,370 crore.

Shankesh Jewellers has reserved 50 per cent of the net offer for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will have 15 per cent of allocation. Retail investors will get 35 per cent of the reservation in the issue. Last heard, it was commanding a grey market premium (GMP) of Rs 3-5 apeice, suggesting listing gains of around 3-6 per cent for investors.

Aryaman Financial Services is the book running lead manager of Shankesh Jewellers IPO and Kfin Technologies is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE on Tuesday, August 25. Here's what a host of brokerage firms say about the IPO of Shankesh Jewellers:

Swastika Investmart
Rating: Neutral
Shankesh Jewellers' PAT margin has improved sharply to 6.5 per cent, but this growth may not be entirely operational, as rising gold prices and inventory gains have also supported profitability. Cash flow remains a concern, with operating cash flow negative in FY25 and only marginally positive in FY26 despite higher profits, said Swastika Investmart.

"The issue is priced fairly to fully valued at 12.8 times FY26 P/E post-issue. It is suitable for investors looking for an asset-light, debt reducing B2B supply chain player in the Indian jewellery segment. Risk-averse investors should monitor working capital efficiency and margin stability post-listing before committing fresh capital," it said with a 'neutral' rating.

Anand Rathi Share & Stock Brokers
Rating: Subscribe for long-term
Shankesh Jewellers is valued at 12.8 times P/E on FY26 earnings. Given its strong financial growth, improving profitability, asset-light business model and established presence in the B2B handcrafted gold jewellery segment, the valuation is fairly-priced. We believe that the IPO is fairly-priced and recommend a 'subscribe for long term' rating to the IPO, said Anand Rathi Share & Stock Brokers.

SBI Securities
Rating: Neutral
Shankesh Jewellers has high working capital requirement with cash conversion cycle of 81 days in FY26. It has delivered revenue, EBITDA and PAT CAGR of 23.9 per cent, 134.9 per cent and 188.4 per cent respectively during FY24-FY26 period. EBITDA margin has expanded 700 bps between the period to 9.7 per cent which largely seems to be driven by the exponential rise in gold prices, said SBI Securities.

Shankesh Jewellers is valued at a post-issue FY26 12.8 times P/E, largely at par with industry peers. All the benefits of high gold prices in terms of inventory gains has contributed to the sharp profitability growth over the last two years. Growth and margins are likely to moderate as the gold prices stabilize while the benefit of interest cost saving will likely support FY27 profits," it said with a 'neutral' tag.

SMIFS
Rating: Subscribe
With industry-leading return ratios of 50.9 per cent ROE and 41.6 per cent ROCE in FY26, a scalable business model and strong customer relationships, we believe the company is well-positioned to deliver sustainable growth over the medium term, said SMIFS. "We recommend subscribing to the issue with a long-term investment horizon," it adds.

BP Equities
Rating: Subscribe
The issue of Shankesh Jewellery is valued at 10.2 times FY26 diluted EPS of Rs 9.09, compared with the listed peer average P/E of 22.5 times. This represents a meaningful discount to peers, and combined with the company's strong return ratios, established B2B franchise with leading organised jewellery retailers and asset-light scalability, we assign a 'subscribe' rating, said BP Equities.

Sushil Finance
Rating: Subscribe
Shankesh Jewellers merits a 'subscribe' on the strength of its earnings trajectory, though the pace of improvement warrants a closer look before sizing an allocation. PAT has grown nearly 9 times over two years to Rs.106.68 crore in FY26 while EBITDA margin expanded dramatically to 9.68 per cent, and RoNW climbed to an exceptional 50.94 per cent in FY26, said Sushil Finance.

This kind of acceleration in an asset-light, job work-based B2B model is plausible operating leverage compounds quickly when fixed costs are minimal and volumes scale with an established client base including several listed jewelry majors of India's largest metal rolls producers, high capacity utilisation, and a new third facility under construction all point to genuine expansion runway, it said.

Master Capital Services
Rating: Subscribe for long-term
Shankesh Jewellers aims to capture market share through leveraging operational capacity, supplier relationships, and existing client connections to drive growth in the jewellery sector. It plans to continue to participate in exhibitions which will help to build partnerships with existing and other jewellery businesses, expand client base, and stay updated on industry trends, said Master Capital with long-term subscribe rating.