Shankesh Jewellers shares surprise investors on Dalal street listing, stock debuts at 11% premium

Shares of Shankesh Jewellers pulled-off a positive surprise on Tuesday, August 25 after the retail jewellery player was listed at Rs 103.30 on NSE, suggesting a premium of 11.08 per cent over its issue price at Rs 93 apeice. Similarly, the stock was settled with a premium 9.89 per cent over the given issue price at Rs 102.20 on BSE Ltd.

As of the listing price, investors made a profit of nearly Rs 1,650 on each lot allotted to them. However, the listing on Shankesh Jewellers IPO has been much above the expectations. Ahead of its debut, the stock was commanding a grey market premium (GMP) of Rs 2-3 apeice, suggesting a mild listing pop for the investors.

The IPO of Shankesh Jewellers was open for subscription between August 18 and August 20. The company offered its shares in the price band of Rs 88-93 per share, with a lot size of 150 equity shares. The company raised around Rs 367 crore through the public issue, which included a fresh share sale of Rs 274 crore and offer-for-sale (OFS) of up to 1 crore equity shares worth Rs 93 crore.

The issue received strong demand across investor categories and was subscribed only 2.80 times overall with more than 1.68 lakh applications valuing for only at Rs 720 crore. The QIB portion was subscribed over 1.32 times, while the NII portion was booked 5.68 times and retail portions a demand for 2.42 times during the bidding.

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.

Brokerage firms has mixed view on the issue, with mostly suggesting it as a long-term bet. Aryaman Financial Services sole the book running lead manager of Shankesh Jewellers IPO and Kfin Technologies was appointed as the registrar of the issue.