Shankesh Jewellers coming with IPO to raise up to Rs 367.18 crore

Shankesh Jewellers

• Shankesh Jewellers is coming out with a 100% book building; initial public offering (IPO) of 3,94,82,000 shares of face value Rs 5 each in a price band Rs 88-93 per equity share.
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on August 18, 2026 and will close on August 20, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 5 and is priced 17.60 times of its face value on the lower side and 18.60 times on the higher side.
• Book running lead managers to the issue are Aryaman Financial Services and Smart Horizon Capital Advisors.
• Compliance officer for the issue is Shweta Dattatray Ravankar.

Profile of the company

Shankesh Jewellers is engaged in the business of hand-crafted gold jewellery and providing customisation services to its clients and depend on third party jobworkers for production and manufacturing of products. Its clientele includes both corporate entities such as Joyalukkas India, P. N. Gadgil & Sons, Kalyan Jewellers India, P N Gadgil Jewellers, Manoj Vaibhav Gems ‘N’ Jewellers, Novel Jewels (Aditya Birla Group), Bhima Jewellery Madurai, Hari Prasad Gopi Krishna Saraf, D.P Abhushan, Vysyaraju Jewellers, Gajaananda Jewellery Mart India, Arundhati Jewellers amongst others and non-corporate entities such as Verma Jewellers and Sham Jewellers amongst others. 

It operates an asset-light business, wherein Karigars hand craft jewellery according to client’s requirement and act as principal contractor, managing the design, material sourcing, and finished Jewellery making process for its clients. Depending upon type of the Jewellery the actual production is outsourced to relevant localised Karigars through Jobworkers who are handled by it on behalf of the client for ensuring the end-to-end delivery of the final product as per their specific design requirements. This model is common in the jewellery industry, allowing the wholesaler to focus on inventory management, specialize in design and marketing without investing in manufacturing infrastructure. Its office is located at Mumbai, Maharashtra and it is distributing its products to reputable nation-wide corporate and non-corporate clients.

It offers a diverse range of high-quality hand-crafted gold jewellery in 22-karat and 18-karat. Its product portfolio encompasses an extensive collection of Bangles, Bridal Jewellery, Chokers, Jhumkas, Long and Short Necklace sets, Mangal Sutra and Rings and combined jewellery sets in categories of Antique Jewellery, Semi Antique Jewellery, Calcutta Jewellery, Temple Jewellery, Gheru Polish and Yellow/ Rodium/ Rose Gold Jewellery with the capability to create customized jewellery tailored to customer specifications. These pieces are suited for all occasions such as weddings, festivals, and daily wear, thereby addressing the diverse needs of its PAN India clientele. Its Gold jewellery is hallmarked as per BIS standard in accordance with regulatory guidelines. In addition to standard product offerings, the company provides custom job work services where clients supply bullion along with specific design requirements, and the company engages Karigars through Jobworkers to craft the jewellery accordingly. Once completed, it delivers the finished pieces directly to its clients, ensuring seamless and high-quality service.

Proceed is being used for: 

• Repayment and/or pre-payment, in full or part, of certain borrowings availed by the company
• Funding working capital requirements of the company
• General corporate purposes

Industry overview

The Indian Gems and Jewellery industry has historically been highly fragmented, dominated by small, family owned and unorganised jewellers, particularly in Tier-II, Tier-III cities and rural markets. A large portion of jewellery purchases have traditionally been relationship-driven, with consumers preferring trusted local jewellers for customised designs, credit flexibility, and assured purity. Industry estimates suggest that the unorganised segment accounted for nearly 70-75% of the market a decade ago, though its share has been gradually declining. Over the past few years, the sector has witnessed increasing formalisation and consolidation, driven by factors such as the introduction of GST, mandatory hallmarking, rising consumer awareness regarding purity and pricing transparency, and the expansion of organised retail chains. As a result, the organised segment’s share has increased to around 35-40%, led by pan-India players and regional brands. Despite this shift, the presence of a large number of small jewellers continues to make it challenging to accurately quantify the total number of jewellery retailers operating in India. However, the industry has seen structural transformation in the recent decade, with more Gems and Jewellery players moving up the value chain with a greater focus on branded jewellery. Moreover, consumers are more predisposed to branded jewellery, particularly in metro & tier I cities, given the rising media and Western influences and willingness to pay a premium price.

In CY25, the domestic gold Jewellery industry was valued at Rs 7,907.7 billion with a CAGR of 9.5% from CY20-CY25. However, in CY25, the demand for gold Jewellery declined in terms of volume by about 24%, while the gold price registered at around 44% increase compared to its previous year. Furthermore, the market is expected to grow at a CAGR of 11.4% between CY25 and CY30 to Rs 13,575.8 billion. In India, the surge in demand for gold jewellery can be attributed to the growing middle-class population and their increasing disposable income levels. As more individuals experience higher income levels, they are more capable of affording luxury items like gold jewellery. This growing middle class views gold jewellery as a status symbol, a reflection of their improved lifestyle, and a worthwhile investment. The trend is especially prominent in urban areas where economic growth has enhanced financial independence and purchasing power.

The Indian gems and jewellery industry remain under pressure in FY26, primarily due to subdued exports and elevated gold prices. However, domestic demand is expected to improve during the festive and wedding season in the second half of the year. Over the medium to long term, easing inflation, stabilising global conditions, and continued expansion by organised jewellery retailers are likely to support a gradual recovery in consumption. Gold jewellery demand is largely driven by weddings and festivals, with bridal jewellery accounting for over half of the market. While rural demand typically strengthens post-harvest (September-November), elevated gold prices-peaking at $4,135.2 per troy ounce in the end of CY25, have dampened discretionary purchases. Consumers have increasingly resorted to old-gold exchanges, leading to inventory and liquidity pressures for retailers. Despite these challenges, investment demand for gold bars and coins remains resilient, and recent reductions in basic customs duty (BCD) on gold and silver are expected to support long-term jewellery demand.

Pros and strengths 

Strong historical financial results: Its financial performance has been instrumental in funding its growth plans. Its robust financial position illustrates not only the growth of its operations over the years, but also the effectiveness of allocation of its capital and strong working capital management in its business. Over the last three fiscals, the company has grown its operations and has demonstrated an increase in revenues and profitability. Its revenue from operations has grown from Rs 10,617.83 million in Fiscal 2024 to Rs 14,038.26 million in Fiscal 2025 and further to Rs 16,307.87 million in Fiscal 2026. Its EBITDA has increased, from Rs 285.99 million in Fiscal 2024 to Rs 653.47 million in Fiscal 2025 and further to Rs 1,579.00 million in Fiscal 2026. Its profit after tax has increased from 128.16 million in Fiscal 2024 to Rs 403.12 million in Fiscal 2025 and further to Rs 1,066.81 million in Fiscal 2026. 

Established relations with corporate and non- corporate jewellery clients: Its commitment to quality control and assurance ensures that its products meet the high standards expected by its clients. By prioritizing quality and timely delivery, it supports its corporate clients and non-corporate clients in delivering products that align with their brand and customer expectations, fostering partnerships and driving mutual success. This commitment has fostered strong relationships. It upholds the highest standards of integrity across its operations, from sourcing to customer service. Its success lies in the strength of its relationship with its customers who have been associated with the company. It has fostered relationships with several jewellery businesses, including corporate jewellery brands (Corporate Clients), such as Joyalukkas India, P. N. Gadgil & Sons, Kalyan Jewellers India, Bhima Jewellers Madurai, etc. Its established relations with non-corporate jewellery clients are demonstrated by its revenue from non-corporate jewellery clients was Rs 4,769.25 million, Rs 6,204.47 million and Rs 5,830.83 million in Fiscal 2024, Fiscal 2025 and Fiscal 2026 respectively, which contributed to 44.92%, 44.20% and 35.76% of its revenue from operations for the same period. 

Experienced promoters and management team with execution capabilities: It attributes its growth to the experience of its Promoters. Kantilal Kheemraj Jain, with over three decades of experience, has brought his vision to the company, which it believes has been instrumental in sustaining its business operations. Its other Promoters, Manoj Kantilal Jain and Mahavir Kantilal Jain, collectively bring around a two decades of experience in the jewellery industry, driving strategic planning and business development for the company. Their industry knowledge and understanding of customer preferences have been instrumental in shaping the vision and direction of its business.

Established marketing setup: Its success lies in the strength of its relationship with its customers who have been associated with the company. Over the years it has established a strong customer base and an unyielding marketing setup. Its sales & marketing team who operates under direct supervision of its Directors, Mahavir Kantilal Jain and Manoj Kantilal Jain. Through their experience and excellent rapport with clients, Mahavir Kantilal Jain and Manoj Kantilal Jain play an instrumental role in creating, maintaining and expanding the customer base for the company. Its reputation of timely delivery, design and quality of 22 karat and 18 karat jewellery have helped it retain its clients and is instrumental in expanding its base towards new clients. It has a sales & marketing team which consists of well experienced and professional people to develop, maintain and increase relations with its customers. Its marketing team also plays an important role in the development of new designs based on their study and feedback on latest fashion trends. It focuses on delivering quality products, timely delivery and design confidentiality while offering value-added propositions to meet its customers' needs. 

Risks and concerns

Seasonality and fluctuations in gold jewellery demand: Its business is subject to significant seasonal fluctuations, which can affect its sales, income, and overall financial performance. Historically, the demand for gold jewellery is driven by cultural events, festivals, and wedding seasons, which vary throughout the year. Gold jewellery demand is largely driven by weddings and festivals, with bridal jewellery accounting for over half of the market. While rural demand typically strengthens post-harvest (September-November), elevated gold prices-peaking at $4,135.2 per troy ounce in the end of CY25, have dampened discretionary purchases. Consumers have increasingly resorted to old gold exchanges, leading to inventory and liquidity pressures for retailers. Despite these challenges, investment demand for gold bars and coins remains resilient, and recent reductions in basic customs duty (BCD) on gold and silver are expected to support long-term jewellery demand. Its revenues and operations tend to experience peaks and troughs based on the timing of these events. Further, seasonal fluctuations may also affect its inventory management. A large buildup of inventory in anticipation of peak periods could lead to excess stock if sales do not meet expectations. Conversely, insufficient inventory to meet demand during peak seasons could lead to missed sales opportunities and strained relationships with customers.

Revenue reliance on limited clients: A significant portion of its revenue from operations is derived from a limited number of clients, including its Corporate Clients, such as Joyalukkas India, P. N. Gadgil & Sons, Kalyan Jewellers India, P N Gadgil Jewellers, Manoj Vaibhav Gems ‘N’ Jewellers, Novel Jewels (Aditya Birla Group), Bhima Jewellery Madurai, Hari Prasad Gopi Krishna Saraf, D.P Abhushan, Vysyaraju Jewellers, Gajaananda Jewellery Mart India, Arundhati Jewellers and others. These relationships have been built on its ability to provide a wide range of designs for its product offering tailored to the needs of its clients by understanding market preferences. Its top 10 customers contributed to 39.56%, 30.48% and 30.62% in the Fiscals 2026, 2025 and 2024, respectively. However, loss of any of its key clients could have a material adverse effect on its business, financial condition, and results of operations. 

Volatility in market price of gold: The jewellery industry generally is affected by fluctuations in the price and supply of gold. Fluctuations in gold prices might affect its results of operations in various ways. An increase in the price of gold may result in an increase in its income from sales assuming such increases do not adversely affect sales volumes and its ability to effectively pass on corresponding increase in costs to customers. However, a significant increase in the price of gold or a negative outlook on future gold prices could, adversely affect its sales volumes. A sudden fall in the market price of gold may affect its ability to recover its procurement costs. Conversely, an increase in the price of gold could lead to a decrease in demand for the jewellery and/or a decrease in its profit margins. Consequently, any such fluctuation in the price of gold may adversely affect its income, profitability and results of operations. 

High revenue concentration in key states: A significant portion of its business operations and revenue generation is concentrated in the Top 5 states (Tamil Nadu, Maharashtra, Uttar Pradesh, Bihar and Odissa) which contributed to 67.84%, 63.67% and 62.00% of its revenue from operations in Fiscal 2026, 2025 and Fiscal 2024. This regional concentration could expose the company to economic, cultural, geopolitical and local market risks. This regional preference for gold jewellery in these states has significantly influenced the company’s business strategy, market presence, and financial performance. However, its heavy reliance on these regions exposes the company to a variety of risks, including economic vulnerability of these regions, shifts in consumer behaviour, geopolitical, regulatory and local market risks such as natural disasters, infrastructure issues, or political instability, which could disrupt supply chains, operations, and sales in these regions. While it has not faced any such instances in the past, the occurrence of such events could adversely affect its business, results of operations, cash flows and financial condition.

Outlook

Shankesh Jewellers is principally engaged in manufacture and wholesale trade of Jewellery. It is committed to excellence and continuously strives to improve its operations, focusing on quality control, inventory management, and business development. The company exclusively deals in jewellery certified by the Bureau of Indian Standards (BIS) Hallmark, a widely recognized mark of purity that encourages additional confidence in consumers regarding the purity of its gold jewellery. To ensure the highest level of customer satisfaction, it prioritizes jewellery designs based on customer specifications. On the concern side, jewellery purchases are dependent on consumers’ discretionary spending power and disposable income. Various factors affect discretionary consumer spending in India, such as the cultural significance of purchasing jewellery during certain festivals (such as Akshaya Tritiya, Navratri/Durga Puja, Gudi Padwa, Gurupushyamrut, Diwali and Dhanteras and other local festivals and occasions), price of precious metals, precious and semi-precious stones, disposable income, economic outlook, employment, inflation levels, interest rates and levels of taxation, among others.

The issue has been offering 3,94,82,000 shares in a price band of Rs 88-93 per equity share. The aggregate size of the offer is around Rs 347.44 crore to Rs 367.18 crore based on lower and upper price band respectively. Minimum application is to be made for 160 shares and in multiples thereon. On performance front, its revenue from operations increased by 16.17% to Rs 16,307.87 million in fiscal 2026, from Rs 14,038.26 million in fiscal 2025. Its profit after tax increased by 164.64% to Rs 1,066.81 million in fiscal 2026 from Rs 403.12 million in fiscal 2025.

Meanwhile, it plans to leverage its operational capacity, supplier relationships, and existing Client connections to drive growth in the jewellery sector. Its leadership team guides strategic initiatives and helps it navigate market dynamics. It has built on relationships with current Clients for growth while pursuing new clients. Tailoring its product offerings to match market trends and client needs will help solidify its position as a trusted B2B partner. By understanding and addressing the specific needs of its clients, it aims to enhance customer satisfaction and loyalty. In addition, it plans to continue to participate in exhibitions which will help it build partnerships with existing and other jewellery businesses, expand its client base, and stay updated on industry trends. Through these efforts, it expects to strengthen its position in the B2B jewellery market and drive sustainable growth to foster stronger relationships with existing clients, aiming to increase recurring sales and grow the volume of transactions.