Shankesh Jewellers IPO day 2: Issue sees decent buying, GMP signals modest listing gains; should you apply? | Stock Market News
Shankesh Jewellers IPO day 2: The initial public offering (IPO) of Shankesh Jewellers is seeing decent buying interest, even as grey market trends suggest the stock could list at a modest premium to the issue price.
Shankesh Jewellers IPO opened for public subscription on Tuesday, 18 August, and will remain open until Thursday, 20 August. The issue price band is fixed at ₹88 to ₹93 per share.
The book-build issue comprises a fresh issue of 29,482,000 shares to raise ₹274.18 crore and an offer for sale (OFS) of 1 crore shares, aggregating to ₹93 crore.
Aryaman Financial Services Limited and Smart Horizon Capital Advisors Private Limited are the book-running lead managers, while KFIN Technologies Limited is the registrar of the Shankesh Jewellers IPO.
Share allotment is expected to be finalised on Friday, 21 August. Successful bidders can expect the shares credited into their demat accounts on the next business day on Monday, 24 August, while those who fail to get the allotment will get the refunds on the same day.
The stock is expected to list on the BSE and the NSE on Tuesday, 25 August.
Shankesh Jewellers is engaged in the business of hand-crafted gold jewellery and providing customisation services to its clients, and depends on third-party job-workers for production and manufacturing of products.
"Our clientele includes both corporate entities such as Joyalukkas India Limited, P. N. Gadgil & Sons Limited, Kalyan Jewellers India Limited, P N Gadgil Jewellers Limited, Manoj Vaibhav Gems ‘N’ Jewellers Limited, Novel Jewels Limited (Aditya Birla Group), Bhima Jewellery Madurai, Hari Prasad Gopi Krishna Saraf Private Limited, D.P Abhushan Limited, Vysyaraju Jewellers Private Limited, Gajaananda Jewellery Mart India Private Limited, Arundhati Jewellers Pvt. Ltd., amongst others and non-corporate entities such as Verma Jewellers and Sham Jewellers, amongst others," says the issue RHP.
In FY26, the company's revenue from operations was ₹1,630.8 crore and profit was ₹106.7 crore.
According to grey market sources, the grey market premium (GMP) of Shankesh Jewellers shares was ₹5 on Wednesday morning, indicating the stock could list at a premium of a little over 5%.
Anand Rathi pointed out that Shankesh Jewellers IPO 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 business-to-business handcrafted gold jewellery segment, the valuation is fairly priced.
According to Swastika Investmart, the issue is priced fairly to fully valued at nearly 12.8 times FY26 P/E post- issue.
"The company’s PAT margin has improved sharply from 1.2% to 6.5%, 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.
Swastika believes the issue is suitable for investors looking for an asset-light, debt-reducing business-to-business 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," said Swastika.
Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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