Shankesh Jewellers IPO announced: ₹196.00 crore issue, what you need to know
Shankesh Jewellers files DRHP for ₹196.00 crore fresh issue. Revenue grew to ₹16,307.87 million in FY2026 with PAT at ₹1,066.81 million. Proceeds will repay debt and fund working capital. IPO opens 18-Aug-2026.
*this image is generated using AI for illustrative purposes only.
Shankesh Jewellers Limited, a Mumbai-based manufacturer of hand-crafted gold jewellery, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company is seeking to raise ₹196.00 crore through a fresh issue, with no Offer for Sale (OFS) component. The proceeds will primarily be used for repaying borrowings and funding working capital requirements. The IPO is scheduled to open on 18-Aug-2026 and close on 20-Aug-2026.
Company Overview
Shankesh Jewellers Limited, incorporated in 2005, operates from Zaveri Bazar, Mumbai. The company specialises in 22-karat and 18-karat BIS Hallmark certified hand-crafted gold jewellery. Its product range includes Bangles, Bridal Jewellery, Chokers, Jhumkas, Necklace sets, Mangal Sutra, and Rings.
The company follows an asset-light business model, relying entirely on a network of third-party Jobworkers (Karigars) for manufacturing rather than owning production facilities. Key corporate clients include Joyalukkas India Limited and Kalyan Jewellers India Limited. The promoters hold 74.25% of the equity share capital pre-issue.
Offer Details
The total identified proceeds from the fresh issue amount to ₹196.00 crore. The price band and lot size are not yet available in the DRHP.
| Component | Amount (₹ Crores) | Purpose |
|---|---|---|
| Fresh Issue (Debt Repayment) | 158.00 | Repayment and/or pre-payment of certain borrowings |
| Fresh Issue (Working Capital) | 38.00 | Funding working capital requirements |
| General Corporate Purposes | Not Specified | Strategic initiatives, partnerships, JVs, acquisitions |
IPO Timeline:
- IPO Opening Date: 18-Aug-2026
- IPO Closing Date: 20-Aug-2026
- Allotment Date: 21-Aug-2026
- Listing Date: 25-Aug-2026
Financial Highlights
The company has reported significant growth in revenue and profitability over the last two fiscal years. Revenue grew from ₹10,617.83 million in FY2024 to ₹16,307.87 million in FY2026. Profit After Tax (PAT) surged from ₹128.16 million in FY2024 to ₹1,066.81 million in FY2026.
| Metric | FY2024 | FY2026 |
|---|---|---|
| Revenue from Operations | ₹10,617.83 million | ₹16,307.87 million |
| EBITDA | ₹285.99 million | ₹1,579.00 million |
| Profit After Tax (PAT) | ₹128.16 million | ₹1,066.81 million |
| Product Returns | ₹462.72 million (4.36%) | ₹1,177.56 million (7.22%) |
Note: FY2025 revenue and PAT figures are not explicitly stated in the narrative sections provided.
Risk Factors
Investors should consider the following material risks highlighted in the DRHP:
- Negative Cash Flow: The company experienced negative net cash flow from operating activities of ₹231.05 million in Fiscal 2025 due to increased working capital deployment.
- Indebtedness: Total outstanding borrowings stood at ₹1,672.96 million as of 31-Mar-2026, with a debt-to-equity ratio of 0.81.
- Dependence on Jobworkers: The company is 100% dependent on third-party Jobworkers for manufacturing, having worked with 72 Jobworkers in Fiscal 2026.
- Customer Concentration: Top 10 customers contributed 39.56% of revenue in FY2026. There are no long-term contracts or exclusivity arrangements.
- Gold Price Volatility: Inventory value is significantly affected by gold price fluctuations. Domestic gold prices reached record-high levels in 2025.
Valuation & Peer Comparison
Direct peer comparison metrics such as P/E and P/B are not available as the price band has not been disclosed. However, the company reported an implied Return on Equity (ROE) of ~50.94% based on FY2026 PAT and pre-issue equity. The EBITDA margin expanded to ~9.68% in FY2026 from ~2.69% in FY2024.
Bottom Line
Shankesh Jewellers presents a high-growth profile with significant PAT expansion and an asset-light model. However, investors must weigh these strengths against risks related to negative operating cash flow, high debt levels, and dependence on third-party manufacturers. The IPO opens on 18-Aug-2026.
How might the significant increase in product returns from 4.36% to 7.22% impact investor confidence and future valuation multiples post-listing?
Given the reliance on third-party jobworkers, what contingency strategies does Shankesh Jewellers have in place to mitigate supply chain disruptions or quality control issues?
With the majority of IPO proceeds allocated to debt repayment, how will the company balance deleveraging with the need for capital expenditure to sustain its rapid revenue growth?
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