The Rs 367.18-crore initial public offering (IPO) of Mumbai-based B2B jewellery company Shankesh Jewellers entered its second day of bidding on August 19, with investor interest showing signs of improvement. In the grey market, the IPO is currently commanding a 5 per cent premium, up from around 2 per cent earlier. While the premium points to expectations of a modestly positive listing, it also suggests that investors should not expect blockbuster listing gains.

On the first day of bidding, the issue was subscribed 36 per cent overall. The retail portion saw stronger demand, with subscription reaching 53 per cent against the shares offered in that category.

The three-day bidding window opened on August 18 and will remain open until August 20, 2026.

The Rs 367.18-crore IPO comprises a combination of a fresh issue and an offer for sale (OFS). The fresh issue consists of 2.95 crore shares worth Rs 274.18 crore, while the OFS comprises 1 crore shares aggregating to Rs 93 crore.

The IPO has a price band of Rs 88 to Rs 93 per share, with a lot size of 160 shares. At the upper end of the price band, retail investors need to invest a minimum of Rs 14,880 for one lot.

The allotment for the Shankesh Jewellers IPO is expected to be finalised on August 21, 2026. Shankesh Jewellers IPO will list on the BSE and NSE with a tentative listing date fixed as August 25, 2026.

Aryaman Financial Services Ltd is the book-running lead manager for the issue, while KFin Technologies Ltd is acting as the registrar.

Shankesh Jewellers IPO Subscription Status

On the first day of bidding, the Shankesh Jewellers IPO was subscribed 36 per cent overall, against the 2.76 crore shares on offer.

The Retail Individual Investors (RIIs) category saw healthy demand, with the portion subscribed 53 per cent, compared with 1.38 crore shares offered.

The Non-Institutional Investors (NIIs) segment was subscribed 38 per cent, against 59.22 lakh shares available for subscription.

Meanwhile, the Qualified Institutional Buyers (QIBs) portion witnessed relatively muted demand, with subscription at 3 per cent of the 78.96 lakh shares on offer.

Shankesh Jewellers IPO GMP Today

The Shankesh Jewellers IPO GMP (Grey Market Premium) currently stands at Rs 5 per share, representing a premium of around 5 per cent over the upper issue price of Rs 93.

At the current GMP, the estimated listing price works out to around Rs 98 per share, suggesting a modest listing gain of approximately Rs 5 per share.

However, GMP is an unofficial and highly volatile indicator and can change before the stock makes its market debut. Investors should therefore assess Shankesh Jewellers' fundamentals, valuation, financial performance and growth prospects rather than relying solely on grey market trends.

IPO Objects of the Issue

The company proposes to utilise the net proceeds from the issue towards strengthening its financial position and meeting its ongoing business requirements. A significant portion of the net proceeds, amounting to Rs 158 crore, will be utilised for the repayment and/or pre-payment, in full or in part, of certain borrowings. This is expected to reduce the company’s outstanding debt obligations and further strengthen its balance sheet.

In addition, Rs 38 crore of the net proceeds is proposed to be deployed towards funding the company’s working capital requirements, thereby supporting its day-to-day operations and ensuring adequate liquidity. The balance of the net proceeds will be utilised towards general corporate purposes.

Shankesh Jewellers Ltd delivered a strong financial performance in FY26, with total income rising 16 per cent year-on-year from Rs 1,403.94 crore in FY25 to Rs 1,630.93 crore. The growth reflects a healthy expansion in the company’s business operations and highlights the continued momentum in its revenue performance.

Profitability witnessed a significantly sharper improvement, with Profit After Tax (PAT) surging 165 per cent from Rs 40.31 crore in FY25 to Rs 106.68 crore in FY26. The substantial increase in PAT, far outpacing the growth in revenue, indicates a marked improvement in the company’s earnings performance and overall profitability during the year.

Incorporated in 2005, Shankesh Jewellers Limited is engaged in the business of manufacturing and supplying customised handcrafted gold jewellery. The company specialises in 22-karat and 18-karat gold jewellery and offers a wide product portfolio comprising bangles, bridal jewellery, chokers, jhumkas, necklace sets, mangalsutras, rings and combined sets across categories such as antique, semi-antique, Calcutta, temple, gheru polish, and yellow gold, rhodium and rose gold jewellery.

The company distributes its products across India to both corporate and non-corporate clients. Its clientele includes established jewellers such as Joyalukkas India Limited, P.N. Gadgil & Sons Limited, Kalyan Jewellers India Limited, Novel Jewels Limited (Aditya Birla Group), Manoj Vaibhav Gems 'N' Jewellers Limited, and other established jewellery houses.

Shankesh Jewellers follows an asset-light business model by engaging skilled local karigars and job workers for production, while managing design, material sourcing and delivery in-house. In addition to product sales, the company also provides job-work services under which clients provide bullion and specific design requirements for manufacturing. The company states that its jewellery is BIS-hallmarked in accordance with applicable regulatory guidelines.

Should You Subscribe to the Shankesh Jewellers IPO?

The IPO appears to offer a combination of strong recent earnings growth, an established B2B customer base and an asset-light operating model. The proposed use of IPO proceeds to reduce debt could also strengthen the company’s balance sheet.

Valuation, however, remains an important consideration. According to an Anand Rathi research report, Shankesh Jewellers is valued at around 12.8x P/E based on FY26 earnings.

Anand Rathi considers the valuation fairly priced, citing the company’s strong financial growth, improving profitability, asset-light business model and established position in the B2B handcrafted gold jewellery segment. The brokerage has assigned a "Subscribe: Long Term" rating to the IPO.

For investors, the key takeaway is that the issue appears to be more suited to those looking at the company’s longer-term growth prospects rather than chasing a quick listing gain. The current GMP points to only a modest potential listing premium, while the company’s sharp improvement in profitability provides a more compelling part of the investment story.