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Anand Rathi Report
Here are the 10 key things investors should know before subscribing Shankesh Jewellers IPO
1. IPO Dates
Shankesh Jewellers Ltd. will launch its initial public offering today, August 18, and the offer closes for subscription on Aug. 20.
2. Price Band
Mumbai-based B2B jewellery company has fixed the price band at Rs 88-93 per share with a face value of Rs 5 each.
3. Issue Size
The Rs 367.2 crore IPO comprises of fresh issue of 2.95 crore equity shares worth Rs 274.18 and offer for sale (OFS) of 1 crore equity shares worth Rs 93 crore.
4. Lot size and minimum investment
Investors can bid for a minimum lot size of 160 shares, translating to a minimum investment of around Rs 14,880 at the upper price band.
5. Objects of the Issue
The proceeds from the fresh issue will be used for:
- Funding working capital requirements.
- Repayment/prepayment of certain borrowings.
- General corporate purposes.
6. BRLM
Aryaman Financial Services, Smart Horizon Capital Advisors are the book running lead manager to the offer, while KFin Technologies is the registrar to the issue.
7. Peer Comparison
Shanti Gold International, Sky Gold and Diamonds are the other listed peer in the sector.
8. About the Company
Shankesh Jewellers as a Mumbai-based B2B gold jewellery company with over three decades of experience in handcrafted jewellery.
The company designs, sources and supplies gold jewellery to retailers across India and follows an asset-light model by outsourcing manufacturing to skilled karigars.
9. Key risk
- Dependence on third-party jobworkers for manufacturing.
- Exposure to gold price volatility.
- Customer and supplier concentration risks.
- Jewellery demand is discretionary and linked to consumer spending trends.
10. Valuation
The IPO is valued at 12.8x FY26 earnings (P/E).
Anand Rathi believes the valuation is fairly priced and recommend a “Subscribe: Long Term” rating to the IPO given the company's growth profile, improving profitability and asset-light model.
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