Shankesh Jewellers Limited approached the primary market with a 100% book-built mainboard issue worth ₹367.18 crore, structured as a combination of a fresh issue and an offer for sale. The table below summarises the key terms of the offer as disclosed in the Red Herring Prospectus.

02  THE COMPANY BEHIND THE CRAFT

Incorporated in 2005 and headquartered in Mumbai's iconic Zaveri Bazar jewellery district, Shankesh Jewellers designs, sources and delivers handcrafted 22-karat and 18-karat gold jewellery to a predominantly business-to-business clientele spread across India. Its catalogue spans bangles, bridal sets, chokers, jhumkas, necklace sets, mangalsutras, rings and customised pieces across antique, semi-antique, Calcutta, temple and Gheru-polish finishes, alongside yellow, rhodium and rose-gold variants.

The business runs on what analysts describe as an asset-light manufacturing model: rather than owning large in-house production units, the company retains control over design, material sourcing and quality control while a network of independent karigars and job workers handles the actual craftsmanship. In FY26, the company was associated with 72 job workers, of whom 66 had formal agreements in place, supported by a lean in-house team of 46 permanent employees as of May 31, 2026. Every piece that leaves the workshop network carries BIS hallmark certification, a baseline the company positions as central to the trust it has built with large retail chains.

Beyond outright sales, Shankesh Jewellers also undertakes customised job work, where clients supply bullion and design specifications and the company manages the manufacturing process end to end through its karigar network. This dual revenue stream, product sales plus job work, has helped the company build long-standing relationships with some of India's most recognised jewellery retail names, including Joyalukkas India, Kalyan Jewellers India, P. N. Gadgil & Sons, P N Gadgil Jewellers, Novel Jewels of the Aditya Birla Group, Manoj Vaibhav Gems 'N' Jewellers, Bhima Jewellery and D. P. Abhushan.

Reach and Client Base

Shankesh Jewellers reported a customer base of 418 clients in FY26, comprising 334 existing relationships and 84 new additions, spread across roughly 21 states. Corporate retail chains accounted for approximately 64.25% of FY26 revenue, while the top five customers together contributed about 23.26% of revenue, a concentration that the company will need to keep diversifying as it scales. Geographically, Maharashtra remained the largest revenue contributor at 25.46% of FY26 sales, followed by Bihar at 17.07%, Uttar Pradesh at 10.71% and Tamil Nadu at 9.36%, reflecting a business that, while pan-India in ambition, still draws heavily from western and eastern India.

03  FINANCIAL PERFORMANCE: FY24-FY26

The three-year financial trajectory disclosed in the RHP shows a company whose profitability has scaled faster than its topline, aided in recent periods by a period of elevated gold prices.

Over the FY24-FY26 window, the company delivered a revenue CAGR of roughly 23.9%, an EBITDA CAGR of about 134.9% and a PAT CAGR near 188.4%, according to brokerage calculations built on the restated financials. Return ratios for FY26 stood out sharply, with Return on Equity at approximately 50.94% and Return on Capital Employed near 41.57%, while the debt-to-equity ratio improved meaningfully through FY26 as the company paid down borrowings ahead of the offer.

Working capital intensity remains a watch-item highlighted across brokerage notes. Inventory rose from ₹131.43 crore in FY24 to ₹239.96 crore in FY26, while trade receivables climbed from ₹39.85 crore to ₹126.42 crore over the same period. Operating cash flow was negative by about ₹23.11 crore in FY25 before turning only marginally positive in FY26, and the company's cash conversion cycle stood at roughly 81 days in FY26, a reminder that gold-heavy inventories tie up significant capital even in an asset-light manufacturing structure.

04  OBJECTS OF THE ISSUE

Net proceeds from the fresh issue portion of ₹274.18 crore are earmarked as follows, per the company's stated objects:

● ₹158.00 crore towards repayment or prepayment of certain outstanding borrowings

● ₹38.00 crore towards funding working capital requirements

● The balance towards general corporate purposes

Notably, the offer-for-sale component of ₹93.00 crore, comprising 1,00,00,000 equity shares sold by promoters Kantilal Kheemraj Jain and Manoj Kantilal Jain, will not add to the company's own balance sheet; those proceeds go directly to the selling shareholders.

05  ANCHOR BOOK AND SUBSCRIPTION STORY

Ahead of the public offer, Shankesh Jewellers finalised its anchor investor allocation on August 17, 2026, raising ₹110.15 crore from 14 institutional investors through the allotment of 1,18,44,600 equity shares at ₹93 apiece, the top end of the price band.

The public bidding window that followed had a slow start before building momentum sharply on the closing day. The issue was subscribed 0.55x in value terms on Day 1, moved to roughly 0.94x by the end of Day 2, and then surged past the full mark during the final session, eventually closing at 2.80 times overall subscription. The offer received bids for approximately 7.74 crore shares against 2.76 crore shares on offer, spread across roughly 1.68 lakh applications.

The sharp final-day pickup was led by the non-institutional investor segment, which more than compensated for a comparatively muted qualified institutional response through the first two days of bidding, a pattern brokerages attributed to price-sensitive, valuation-conscious institutional buyers waiting on the sidelines before committing.

06  LEADERSHIP, OWNERSHIP AND MANAGEMENT COMMENTARY

Shankesh Jewellers is helmed by three promoters from the Jain family: Kantilal Kheemraj Jain, who serves as Chairman and Non-Executive Director, along with Mahavir Kantilal Jain and Manoj Kantilal Jain. Together, the promoter and promoter group held an aggregate 95.48% of the pre-offer paid-up equity capital, a stake expected to be diluted to roughly 69.53% once the public shareholding is factored in post-listing, a level that still leaves the founding family firmly in control of strategic direction.

On the management's approach to sustaining growth, company disclosures and market commentary point to a strategy built around deepening existing B2B relationships rather than chasing volume for its own sake. The company has indicated it intends to keep participating in trade exhibitions as a way to build partnerships with both existing and new jewellery businesses, widen its client base and stay current with evolving design and demand trends in the handcrafted jewellery category. Management has also attributed the sharp improvement in FY26 profitability to a combination of operational efficiency gains within its asset-light structure, tighter margin management across product categories, and stronger demand from its established B2B client roster.

07  GROWTH OUTLOOK

Shankesh Jewellers enters public markets with a business model that several analysts describe as structurally scalable: because manufacturing is outsourced to independent karigars rather than owned facilities, the company can, in principle, expand output without proportionate capital expenditure. A deleveraging balance sheet, an expanding roster of 418 B2B clients, deep-rooted relationships with several of India's largest organised jewellery retailers, and a three-decade legacy of craftsmanship in the handcrafted gold segment are the pillars most frequently cited in favour of the long-term story.

At the same time, the outlook carries genuine caveats that a prospective shareholder should weigh rather than gloss over. The company does not currently hedge its gold inventory, which means its recent profitability has benefited from an upward gold price cycle that may not repeat in every future period. Heavy dependence on third-party job workers, many of whom are not bound by long-form written contracts, introduces operational and supply-chain risk. Working capital intensity, evident in the growing gold-heavy inventory and receivables base, will need continued discipline to manage as the business scales. And with corporate clients contributing close to two-thirds of revenue, the company's fortunes remain closely tied to how well those retail partners themselves perform in a price-sensitive consumer jewellery market.

Taken together, the growth narrative is best read as a business with a genuinely differentiated, capital-efficient model navigating the classic tension of jewellery manufacturing: strong return ratios today, set against the cyclicality of gold prices and the operational discipline needed to convert paper profits into durable cash flow tomorrow.

08  WHAT THE STREET IS SAYING

Brokerage opinion on the issue has been mixed rather than uniformly bullish, a nuance worth noting for anyone tracking sentiment around the listing. Swastika Investmart assigned a Neutral view, noting that the issue appeared fairly to fully valued at roughly 12.8 times FY26 post-issue earnings, and flagged that cash flow, having been negative at the operating level in FY25 and only marginally positive in FY26, warranted close monitoring even as profitability improved. SBI Securities similarly pointed out that the EBITDA margin expansion of close to 700 basis points over FY24-FY26 was largely a function of rising gold prices rather than pure operating leverage, since the company does not currently hedge its inventory.

On the more constructive side, Master Capital issued a subscribe-for-long-term recommendation, framing Shankesh Jewellers as a player capable of capturing further market share by leveraging its operational capacity, supplier relationships and existing client connections. Anand Rathi's research desk also carried a Subscribe: Long Term rating, valuing the company at approximately 12.8 times FY26 earnings and highlighting its asset-light structure, hallmark-certified quality standards and long-standing retailer relationships as key positives.

09  KEY TAKEAWAYS

● A ₹367.18-crore mainboard issue from an asset-light, B2B-focused handcrafted gold jewellery manufacturer with roots in Mumbai's Zaveri Bazar since 2005.

● FY26 revenue of ₹1,630.93 crore and PAT of ₹106.68 crore, translating into a 165% year-on-year jump in profitability alongside 16% revenue growth.

● Closed subscription at 2.80 times overall, powered by strong non-institutional demand and a more measured institutional response.

● Sizeable use of proceeds directed toward debt repayment (₹158 crore) and working capital (₹38 crore), aimed at strengthening the balance sheet.

● A promoter family retaining majority control post-listing, alongside a strategy centred on deepening existing retailer relationships and expanding exhibition-led client acquisition.

● Key risks to track: gold-price-linked margin volatility, unhedged inventory exposure, job-worker dependency and customer concentration among top clients.

Disclaimer: This report has been compiled from publicly available sources, including the company's Red Herring Prospectus, stock exchange disclosures and secondary market commentary, for general informational purposes only. It does not constitute investment advice, a recommendation to buy or sell securities, or a solicitation of any kind. Grey market premium figures are informal and unregulated. Readers are strongly encouraged to review the complete Red Herring Prospectus and consult a registered financial advisor before making any investment decision.