Shankesh Jewellers IPO draws retail interest amid muted institutional demand
The Rs 367.18 crore initial public offering of the gold jewellery manufacturer has seen slow institutional uptake on its first day, prompting investors to weigh its debt-reduction strategy against modest listing expectations.
Bidding for the Shankesh Jewellers initial public offering reached 36 per cent of the total 2.76 crore shares on offer during its first day. The Rs 367.18 crore issue, which combines a fresh issue and an offer for sale, opened on August 18 and closes on August 20, 2026.
Retail individual investors drove the early momentum, subscribing to 53 per cent of their allotted 1.38 crore shares. In contrast, qualified institutional buyers subscribed to just 3 per cent of their 78.96 lakh share quota, while non-institutional investors took up 38 per cent of their portion.
This muted institutional response comes despite the company reporting a sharp improvement in profitability. Profit after tax surged 165 per cent to Rs 106.68 crore in FY26, up from Rs 40.31 crore in FY25, while total income grew 16 per cent to Rs 1,630.93 crore.
Management intends to use Rs 158 crore of the net proceeds to repay or pre-pay existing borrowings. An additional Rs 38 crore will fund working capital requirements, a move designed to strengthen the balance sheet and support daily operations.
Incorporated in 2005, the company operates an asset-light model, outsourcing production to local skilled workers while retaining control over design and sourcing. It supplies customised 18-karat and 22-karat gold jewellery to major domestic retailers, including Kalyan Jewellers and Joyalukkas.
Market analysts note the stock is valued at approximately 12.8 times price-to-earnings based on FY26 earnings. Anand Rathi has assigned a long-term subscribe rating, citing the company’s established business-to-business footprint and improving margins.
The grey market premium currently indicates a modest listing gain of around Rs 5 per share over the upper price band of Rs 93. Consequently, market professionals view the offering as a play on long-term fundamental growth rather than short-term listing arbitrage.
