Shankesh Jewellers IPO Draws Strong NII Demand as Bidding Nears Close
Shankesh Jewellers’ Rs 367 crore initial public offering is nearing its close with robust non-institutional subscription, signaling investor confidence in the asset-light gold manufacturer’s sharp profitability growth despite modest grey market premiums.
The Rs 367.18 crore initial public offering of Shankesh Jewellers Ltd is set to close on August 20, 2026, having attracted robust demand across key investor categories. The issue, priced at Rs 88 to Rs 93 per share, saw the non-institutional investor segment subscribe 5.68 times its allotted 59.22 lakh shares.
Retail individual investors also showed steady interest, bidding for 2.42 times the 1.38 crore shares reserved for them. Qualified institutional buyers subscribed 1.32 times their 78.96 lakh share allocation, bringing overall subscription to 94 per cent by the second day of the three-day bidding window.
This demand underscores market confidence in the company’s recent financial trajectory. Shankesh Jewellers reported a 165 per cent surge in profit after tax to Rs 106.68 crore in FY26, up from Rs 40.31 crore in FY25. Total income also grew 16 per cent year-on-year to Rs 1,630.93 crore.
A primary driver for institutional interest is the company’s plan to deleverage. Approximately Rs 158 crore of the net proceeds will be deployed to repay or pre-pay existing borrowings, directly strengthening the balance sheet. An additional Rs 38 crore will fund working capital requirements.
The manufacturer operates an asset-light model, relying on skilled local karigars and job workers for production while retaining design and sourcing in-house. This strategy has secured a robust B2B clientele, including major retail chains such as Kalyan Jewellers, Joyalukkas and P. N. Gadgil & Sons.
Valuation and Listing Outlook
Despite the strong operational metrics, the grey market premium remains subdued at Rs 3 per share, implying a tentative listing price of Rs 96. This represents a modest 3 per cent gain over the upper price band, suggesting the market is pricing the stock for steady growth rather than short-term speculation.
AnandRathi values the company at approximately 12.8 times its FY26 earnings, describing the IPO as fairly priced. The brokerage has assigned a long-term subscribe rating, emphasizing that the investment thesis rests on sustained profitability improvements rather than immediate listing gains.
For investors, the offering presents a calculated entry into India’s organised jewellery manufacturing sector. The combination of debt reduction, an established B2B distribution network and surging margins provides a solid foundation for long-term value creation.
