The mainboard initial public offering (IPO) of Mumbai-headquartered handcrafted gold jewellery manufacturer and B2B custom jewellery specialist Shankesh Jewellers Limited completed its second day of public bidding across the national bourses today, Wednesday, August 19, 2026.
Carrying an aggregate issue size of ₹367.18 crore set within an official price band parameter of ₹88.00 to ₹93.00 per share, the public offer marks an important capital-raising exercise to fund raw material working capital and repay existing debt.
By the close of its second bidding session across BSE and NSE at 5:00 PM IST, central exchange matching engines compiled valid electronic application tokens for 2,60,88,960 equity shares against a net public offer pool of 2,76,38,000 equity shares (excluding anchor allocations). This brings the overall Day 2 subscription baseline up to 0.94 times (94% coverage).
Retail individual investors spearheaded the volume acceleration by crossing into full oversubscription at 1.13 times, while high-net-worth wealth accounts (HNIs) and Qualified Institutional Buyers (QIBs) advanced their order books to 0.76x each ahead of Thursday's final closing bell.
At the upper price band cap of ₹93 per share, the offer has mobilized an aggregate primary capital demand value of ₹242.63 crore clearing through central registries.
The three-day public bidding window will officially close tomorrow, Thursday, August 20, 2026.
Here is an extended, plain-English human breakdown covering Day 2 subscription metrics, unlisted grey market trends, business operations across handcrafted gold jewellery, financial performance, working capital deployment, valuation parameters, and the upcoming allotment schedule.
1. Day 2 Subscription Data Breakdown
By 5:00 PM on Day 2, central exchange processing registries compiled total valid application orders worth ₹242.63 crore (calculated at the upper price band cap of ₹93 per share), covering 94% of the net public offer.
The table below summarizes the second day's performance across all investor categories:
+-----------------------------------------------------------------------------------+ | SHANKESH JEWELLERS LIMITED: DAY 2 SUBSCRIPTION DATA | +-------------------+-----------------+------------------+------------------+-------+ | Category | Shares Offered | Shares Bid For | Subscription (x) | Value | +-------------------+-----------------+------------------+------------------+-------+ | QIB (Institutions)| 78,97,000 | 60,01,120 | 0.76x | ₹55.81Cr | NII / HNI (Wealth)| 59,22,300 | 45,09,920 | 0.76x | ₹41.94Cr | Retail (RII) | 1,38,18,700 | 1,55,77,920 | 1.13x | ₹144.87Cr +-------------------+-----------------+------------------+------------------+-------+ | Total Net Offer | 2,76,38,000 | 2,60,88,960 | 0.94x | ₹242.63Cr +-------------------+-----------------+------------------+------------------+-------+
Analyzing the Category Inflows:
- Retail Individual Investors (RII - 1.13x): Everyday retail accounts spearheaded the Day 2 volume surge, expanding from 73.67 lakh shares (0.53x) on Day 1 to 1,55,77,920 shares (97,362 application lots) on Day 2, taking the retail portion into full oversubscription at 1.13 times (totaling ₹144.87 crore). The minimum retail application lot is fixed at 160 shares, requiring an accessible baseline layout of ₹14,880 at ₹93 per share.
- Qualified Institutional Buyers (QIB - 0.76x): Institutional desks stepped up their participation on Day 2, moving from 0.03x on Day 1 to 0.76 time with bids placed for 60,01,120 shares worth ₹55.81 crore against 78.97 lakh shares offered. Under standard mainboard book-building guidelines, institutional funds traditionally deploy the bulk of their large block orders on the final afternoon of Day 3.
- Non-Institutional Investors (NII / HNI - 0.76x): High-net-worth wealth accounts and family offices expanded bids from 22.52 lakh shares (0.38x) on Day 1 to 45,09,920 shares worth ₹41.94 crore on Day 2, achieving 76% coverage. Both small-HNI (minimum 14 lots / 2,240 shares = ₹2,08,320) and big-HNI brackets saw active multi-lot bidding.
2. Unlisted Grey Market Premium (GMP) & Market Sentiment
In the unofficial grey market, sentiment surrounding Shankesh Jewellers remains stable:
- Fixed Upper Price Cap Anchor: ₹93.00 per share
- Current Grey Market Premium (GMP): Tracking around +₹4.00 to +₹5.00 per share (~4.3% to 5.4% over issue price)
- Estimated Listing Price Range: Expected debut counter level of ₹97.00 to ₹98.00 per share
- Projected Listing Gain Margin: Indicating an immediate estimated listing upside of ~4.30% to 5.38%
- Retail Application Lot Size: 160 Shares (Minimum Investment: ₹14,880)
What Is Driving Grey Market Sentiments?
- Asset-Light B2B Jewellery Model: Operating out of Zaveri Bazar, Mumbai with a network of skilled job-workers allows the company to supply customized 22K and 18K gold jewellery to leading retail chains (such as Kalyan Jewellers, Joyalukkas, and PNG) with minimal fixed plant capex.
- Accelerating Earnings Expansion: Profit after tax (PAT) surged 164.6% YoY to ₹106.68 crore in FY26, supporting a Return on Equity (ROE) of 50.90%.
(Note: Grey market premiums represent informal, off-exchange quotes traded among dealers. They fluctuate based on daily market mood and should not be treated as a guaranteed listing price.)
3. Business Overview: What Does Shankesh Jewellers Do?
Originally founded in 1992 and incorporated as H.K. Gold Private Limited in 2005 before rebranding to Shankesh Jewellers, Shankesh Jewellers Limited is headquartered in India’s historic jewellery hub of Zaveri Bazar, Mumbai.
The company specializes in designing, procuring, manufacturing, and wholesaling handcrafted gold jewellery and providing customized jewellery solutions. It supplies 22-karat and 18-karat gold necklaces, bangles, bridal sets, chokers, jhumkas, and rings to leading national corporate jewellery chains and established regional jewelers across India.
+-----------------------------------------------------------------------------------+ | SHANKESH JEWELLERS BUSINESS AT A GLANCE | +-----------------------------------+-----------------------------------------------+ | Core Focus Area | B2B Handcrafted Gold Jewellery & Custom Orders| +-----------------------------------+-----------------------------------------------+ | Product Portfolio | 22K & 18K Gold Jewellery, Bridal Ornaments, | | | Bangles, Chains, Necklaces, Rings, Antique | +-----------------------------------+-----------------------------------------------+ | Manufacturing Model | Asset-Light Model leveraging dedicated | | | third-party Karigars and Job-workers | +-----------------------------------+-----------------------------------------------+ | Commercial Operating Hub | Zaveri Bazar, Mumbai, Maharashtra | +-----------------------------------+-----------------------------------------------+ | Key Clients Served | Kalyan Jewellers, Joyalukkas, PNG & Sons, etc.| +-----------------------------------+-----------------------------------------------+ | Key Geographic Markets Served | Tamil Nadu, Maharashtra, Uttar Pradesh, | | | Bihar, Odisha, and Andhra Pradesh | +-----------------------------------+-----------------------------------------------+
(Source: Official Draft Red Herring Prospectus & Industry Filings)
Core Competitive Moats:
1. Asset-Light Job-Worker Production Architecture
Rather than investing heavily in centralized factory land and machinery, Shankesh Jewellers operates an asset-light production model by collaborating with experienced local Karigars (craftsmen) and job-workers. This allows the company to scale design variety and output rapidly without incurring heavy fixed plant depreciation.
2. Long-Standing Corporate B2B Partnerships
With over three decades of operating relationships tracing back to 1992, the company serves as an established supply chain partner for major organized jewellery retailers and regional multi-store brands that outsource customized handcrafted designs.
3. Wide Multi-State Wholesale Reach
The company distributes its handcrafted jewellery across major gold consumption states—including Tamil Nadu, Maharashtra, Uttar Pradesh, Bihar, Odisha, and Andhra Pradesh—giving it diversified exposure across regional consumer preferences.
4. Detailed Financial Performance (FY24 to FY26)
An audit of Shankesh Jewellers' restated financial statements shows steady top-line expansion alongside substantial operational and net profit growth over the last three fiscal years.
+-----------------------------------------------------------------------------------+ | SHANKESH JEWELLERS: 3-YEAR FINANCIAL PERFORMANCE | +-------------------------------+-------------------+-------------------+-----------+ | Financial Metric (₹ in Cr) | FY24 | FY25 | FY26 | +-------------------------------+-------------------+-------------------+-----------+ | Revenue from Operations | 1,061.78 | 1,403.83 | 1,630.78 | | Total Income | 1,061.91 | 1,403.94 | 1,630.93 | | Operating EBITDA | 28.59 | 65.35 | 157.90 | | EBITDA Margin (%) | 2.69% | 4.65% | 9.68% | | Net Profit After Tax (PAT) | 12.82 | 40.31 | 106.68 | | PAT Margin (%) | 1.21% | 2.87% | 6.54% | | Total Debt / Borrowings | 109.81 | 145.63 | 167.30 | | Net Worth | 60.29 | 100.60 | 209.43 | | Return on Equity (ROE %) | 21.26% | 40.10% | 50.90% | | Return on Capital Employed % | 16.46% | 26.28% | 41.57% | +-------------------------------+-------------------+-------------------+-----------+
(Source: Restated Financial Statements in Prospectus & KPI Reports)
Key Financial Observations:
- Consistent Revenue Growth: Operating revenue expanded from ₹1,061.78 crore in FY24 to ₹1,403.83 crore in FY25, before reaching ₹1,630.78 crore in FY26 (a 2-year CAGR of 23.93%). Growth was driven by larger order volumes from corporate retail jewellery chains.
- Accelerated Profit Growth: Net profit after tax (PAT) grew from ₹12.82 crore in FY24 to ₹40.31 crore in FY25, before surging to ₹106.68 crore in FY26 (a 164.6% YoY profit surge). EBITDA margins expanded to 9.68% and PAT margins reached 6.54% in FY26 due to higher-margin customized designs and operational scale.
- High Return Ratios: Capital efficiency improved across the board, delivering a Return on Equity (ROE) of 50.90% and a Return on Capital Employed (ROCE) of 41.57% in FY26.
- Deleveraging Balance Sheet: Total debt stood at ₹167.30 crore against a net worth of ₹209.43 crore, bringing the net debt-to-equity ratio down from 1.44x in FY25 to 0.80x in FY26.
5. Structure of the Offer & Objects of the Issue
The ₹367.18 crore public issue is split into fresh capital and an offer for sale:
+-----------------------------------------------------------------------------------+ | IPO CAPITAL STRUCTURE BREAKDOWN | +-----------------------------------+-----------------------------------------------+ | Total Issue Size | ₹367.18 Crore (3,94,82,000 Equity Shares) | +-----------------------------------+-----------------------------------------------+ | Fresh Issue Component | ₹274.18 Crore (2,94,82,000 Equity Shares) | +-----------------------------------+-----------------------------------------------+ | Offer for Sale (OFS) Component | ₹93.00 Crore (1,00,00,000 Equity Shares) | +-----------------------------------+-----------------------------------------------+ | Price Band | ₹88.00 to ₹93.00 per share | +-----------------------------------+-----------------------------------------------+ | Face Value | ₹5 per share | +-----------------------------------+-----------------------------------------------+ | Lead Managers (BRLMs) | Aryaman Financial Services Limited, | | | Smart Horizon Capital Advisors Private Ltd | +-----------------------------------+-----------------------------------------------+ | Registrar to the Issue | KFin Technologies Limited | +-----------------------------------+-----------------------------------------------+
(Source: Official Red Herring Prospectus)
How Will Fresh Issue Capital Be Deployed?
Out of the ₹367.18 crore total issue size, ₹274.18 crore represents fresh primary capital coming directly onto the company balance sheet:
- Working Capital Requirements (Major Portion): Procuring bulk raw gold bullion to support large custom jewellery manufacturing orders and managing trade credit terms with retail chains.
- Repayment / Prepayment of Debt: Paying down bank working capital borrowings to reduce interest overheads post-listing.
- General Corporate Purposes: Supporting business development, IT systems, and corporate operations.
Understanding the Offer for Sale (OFS):
The remaining ₹93.00 crore (1.00 crore shares) is an Offer for Sale (OFS) by promoter selling shareholders. OFS proceeds go directly to selling shareholders.
6. Valuation Analysis & Peer Group Comparison
At the upper price band cap of ₹93 per share, Shankesh Jewellers is priced at a trailing Price-to-Earnings (P/E) multiple of 10.23x based on its pre-issue FY26 basic EPS of ₹9.09 (and 12.81x based on post-issue diluted equity capital of 14,70,31,420 shares with diluted FY26 EPS of ₹7.26), establishing a post-issue corporate market capitalization of approximately ₹1,367.39 crore.
Let's compare this with listed jewellery manufacturing, B2B wholesale, and retail peers in India:
+-----------------------------------------------------------------------------------+ | PEER GROUP VALUATION COMPARISON | +-----------------------------------+--------------------+--------------------------+ | Company Name | Trailing P/E (x) | Primary Focus / Model | +-----------------------------------+--------------------+--------------------------+ | Shankesh Jewellers (At ₹93) | ~12.81x (Post-IPO) | B2B Handcrafted Jewellery| | Sky Gold Ltd | ~32.50x | B2B Jewellery Castings | | Goldiam International Ltd | ~22.40x | Diamond Jewellery Exports| | Radhika Jeweltech Ltd | ~18.60x | Regional Retail/Wholesale| | Kalyan Jewellers India Ltd | ~68.40x | National Retail Chain | | Senco Gold Ltd | ~38.50x | Retail & Wholesale Gold | +-----------------------------------+--------------------+--------------------------+
Valuation Summary:
At ~12.8x post-issue FY26 trailing earnings, Shankesh Jewellers enters the market at an attractive entry valuation compared to listed B2B peer Sky Gold (~32.5x P/E) and jewellery retail majors (38x–68x P/E).
With revenue at ₹1,630.78 crore, a 50.90% ROE, and PAT reaching ₹106.68 crore, the ~12.8x post-issue multiple leaves a solid fundamental margin of safety for incoming public investors.
7. Core Strengths vs. Key Business Risks
Investors evaluating this mainboard jewellery issue should weigh the following operational factors:
Key Strengths:
- Disciplined Valuation (12.81x Post-IPO P/E): Priced at ~12.8x post-issue earnings relative to ₹106.68 crore PAT.
- Asset-Light Scalable Model: Utilizing third-party skilled Karigars keeps capital expenditure low.
- Strong Return Ratios: Delivering a 50.90% ROE and 41.57% ROCE in FY26.
- Established B2B Supply Chain Footprint: Three decades of presence in Zaveri Bazar serving national clients like Kalyan Jewellers and Joyalukkas.
Key Risk Factors:
- Third-Party Job-Worker Dependency: Production relies entirely on third-party job-workers and Karigars. Labor shortages or quality variances could affect order execution.
- Customer & Geographic Concentration: The top 5 states contributed over 60% of revenue in FY26.
- Gold Commodity Price Volatility: Unhedged gold price fluctuations can impact inventory values and raw material procurement costs.
8. Application Matrix & Key Timeline
With the bidding window closing tomorrow, here is the upcoming schedule and application size breakdown:
- Public Bidding Window Closes: Thursday, August 20, 2026 (5:00 PM IST)
- Basis of Allotment Finalization: Friday, August 21, 2026
- Refund Initiations & Unblocking of Bank Funds: Monday, August 24, 2026
- Credit of Equity Shares to Demat Accounts: Monday, August 24, 2026
- Official Stock Exchange Listing (BSE & NSE): Tuesday, August 25, 2026
- Designated Lead Managers: Aryaman Financial Services Ltd, Smart Horizon Capital Advisors
- Designated Registrar: KFin Technologies Limited
Application Size Matrix:
- Retail Minimum: 1 Lot (160 Shares) — ₹14,880
- Retail Maximum: 13 Lots (2,080 Shares) — ₹1,93,440
- Small HNI (sNII) Minimum: 14 Lots (2,240 Shares) — ₹2,08,320
- Big HNI (bNII) Minimum: 68 Lots (10,880 Shares) — ₹10,11,840
How to Check Your Allotment Status:
When allotment details go live on Friday, August 21, 2026, applicants can check their status by entering their PAN card number or Application ID on the KFin Technologies Portal or directly on the official BSE/NSE websites under the issue allotment sections.
Conclusion: What Should You Watch for on Day 3?
Shankesh Jewellers presents an established B2B jewellery story backed by its presence in Zaveri Bazar, asset-light Karigar network, 50.90% ROE returns, ₹106.68 crore PAT, and an attractive 12.81x post-issue trailing P/E valuation.
With Day 2 subscription reaching 0.94x overall (supported by 1.13x retail oversubscription and 0.76x across QIB and HNI tranches), the issue is positioned to cross full oversubscription early on Day 3.
Over the final trading session tomorrow, watch how institutional QIBs and high-net-worth wealth accounts deploy their final order blocks ahead of Thursday's 5:00 PM closing deadline.
Post Excerpt
A complete Day 2 analysis of the ₹367.18 crore Shankesh Jewellers IPO. Bids reached 0.94x on Day 2 with retail oversubscribed at 1.13x. Read our full review of company financials (₹1,630+ Cr revenue, ₹106.68 Cr PAT), Zaveri Bazar handcrafted gold jewellery moats, grey market trends (+₹4–₹5), working capital plans, and valuation (12.81x post-issue P/E) ahead of tomorrow's close.