A three-decade-old B2B hand-crafted gold jewellery player opens its Rs 367.18 crore mainboard issue on August 18 — asset-light model, marquee customers like Kalyan and Joyalukkas
A Mumbai-based B2B hand-crafted gold jewellery company plans to raise Rs 367.18 crore via a mainboard listing on BSE and NSE.
Shankesh Jewellers Ltd. (SJL) sits at an interesting corner of India’s jewellery value chain. It is not a retail brand you’d see in a shopping mall. Instead, it is a B2B supplier that makes hand-crafted gold jewellery for many of India’s biggest jewellery retailers — the brands whose stores you actually walk into.
The customer list reads like a who’s-who of Indian organised jewellery retail. SJL supplies Kalyan Jewellers India, Joyalukkas India, P.N. Gadgil & Sons, PN Gadgil Jewellers, Manoj Vaibhav Gems ‘N’ Jewellers, Novel Jewels (Aditya Birla Group), Bhima Jewellery Madurai, D.P. Abhushan, and several other reputed corporate and non-corporate players. This B2B model gives SJL a smoother order flow than a retail-facing player would have — the retailers themselves manage store demand and place bulk orders with SJL, insulating the company from the vagaries of walk-in footfall.
The product basket is focused on the high-value bridal and occasion-wear segment. SJL makes bangles, bridal jewellery, chokers, jhumkas, long and short necklace sets, mangalsutras, rings and combined jewellery sets across styles like Antique, Semi-Antique, Calcutta, Temple, Gheru Polish, and Yellow/Rhodium/Rose Gold. All jewellery is hallmarked as per BIS standards. The pieces are designed to suit weddings, festivals and daily wear across a pan-India customer base.
It runs an asset-light business — SJL doesn’t manufacture jewellery in-house. Instead, it acts as the principal contractor, managing design, material sourcing and finished jewellery making through a network of Karigars (skilled artisans) engaged through Jobworkers. In FY26, SJL worked with 72 Jobworkers, of which 66 have formal agreements. This means the company can focus on design, inventory management and customer relationships without carrying the fixed cost of a manufacturing plant.
Beyond standard product offerings, SJL provides custom job work services where clients supply gold bullion along with specific design requirements. This helps clients monetise their inventory without needing in-house design or artisan capabilities of their own.
The three-decade legacy in the hand-crafted jewellery segment gives SJL deep karigar relationships — genuinely a competitive moat in a business where skilled artisans are hard to find and even harder to retain.
The Indian jewellery market is large and steadily formalising. Rising organised share of retail, increasing gold demand for bridal and gifting, and the shift toward branded and hallmarked jewellery all support the B2B supplier segment. That said, it is a fragmented and price-sensitive market with rising competition from other B2B players and in-house manufacturing capabilities being built by large retailers.
As of May 31, 2026, SJL had 46 employees on its payroll and was associated with 72 jobworkers — a genuinely lean corporate structure for a company with over Rs 1,600 crore in FY26 revenue.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | August 18, 2026 |
| Issue Closes | August 20, 2026 |
| Listing | BSE, NSE (Mainboard) |
| Price Band | Rs 88 – Rs 93 per share |
| Face Value | Rs 5 |
| Issue Size | Rs 367.18 crore |
| Fresh Issue | Rs 274.18 crore (2,94,82,000 shares) |
| OFS | Rs 93.00 crore (1,00,00,000 shares) |
| Lot Size | 160 shares (multiples thereafter) |
| Min. Retail Investment | Rs 14,880 |
| Post-IPO Market Cap | Rs 1,367.39 crore |
| IPO Constitutes | 26.85% of post-IPO equity |
| BRLMs | Aryaman Financial Services, Smart Horizon Capital Advisors |
| Registrar | KFin Technologies Ltd. |
From the fresh proceeds, Rs 158 crore is earmarked for repayment or prepayment of certain borrowings, Rs 38 crore for working capital, and the balance for general corporate purposes. This is heavily a deleveraging IPO, which should improve profitability through finance cost savings.
Post-IPO, paid-up equity moves from Rs 58.77 crore to Rs 73.52 crore.
The promoter and selling stakeholder average cost of acquisition is Rs 0.37 and Rs 0.44 per share. This reflects earlier share issuances between Rs 12.50 and Rs 400 (between October 2015 and September 2025) and four bonus issues over the years — 4-for-5 in March 2011, 4-for-9 in July 2012, 25-for-10 in October 2024, and a large 5-for-1 in September 2025.
GMP Watch
Grey market interest has been moderate. Shankesh Jewellers IPO GMP is around Rs 10-15 in the days leading up to the issue opening, suggesting an estimated listing price of around Rs 103-108 — a modest premium of roughly 11-16% over the upper price band of Rs 93. GMP is unofficial, unregulated and shifts quickly with anchor bidding and subscription trends — treat it as one data point, not a listing forecast.
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Total Income | 1,061.91 | 1,403.94 | 1,630.93 |
| PAT | 12.82 | 40.31 | 106.68 |
| PAT Margin | 1.21% | 2.87% | 6.54% |
| RoCE | 16.46% | 26.28% | 41.57% |
Revenue has grown steadily from Rs 1,061.91 crore in FY24 to Rs 1,630.93 crore in FY26 — a healthy 54% jump in two years, driven by strong order flow from marquee jewellery retail customers and rising gold prices.
The bottom line has moved much more sharply. PAT has jumped over 8x from Rs 12.82 crore in FY24 to Rs 106.68 crore in FY26. PAT margin has expanded from just 1.21% to 6.54%, and RoCE has climbed from 16.46% to a striking 41.57%.
In B2B jewellery, PAT margins typically stay in low single digits because the business is fundamentally a commodity pass-through — gold is bought at market rates and sold with a making charge margin. The 6.54% margin in FY26 is well above industry norms and reflects a mix of rising gold prices (which lifts revenue absolutely), higher making charges, and the leverage effect of the asset-light model on a growing revenue base.
Average EPS over three years is Rs 5.87 and average RoNW is 42.37%. At the upper band of Rs 93, the P/E works out to 12.81x on FY26 earnings and 33.94x on FY25 — a wide gap that shows how much the valuation depends on FY26 margins holding up. The issue is priced at a P/BV of 5.21 on pre-IPO NAV and 2.83 on post-IPO NAV of Rs 32.89 per share.
According to a note by Equivision, “at the upper price band of Rs 93, the IPO is valued at a post-issue P/E of 12.81x and P/B of 2.83x, indicating a fair valuation.” The brokerage adds that “while the valuation does not appear significantly expensive, its sustainability will depend on the company’s ability to maintain healthy business performance and earnings going forward. If the company continues to perform well, the current valuation could be sustained over the longer term.”
Risks to Consider
The FY26 margin jump from 2.87% to 6.54% is the biggest sustainability question. Jewellery B2B is a low-margin, gold-price-linked business, and sustaining margins above 6% will require continued high gold prices, favourable making charge dynamics and no aggressive push by clients to bring more work in-house.
Customer concentration is a real risk. While SJL has a marquee client list, a handful of large retailers (Kalyan, Joyalukkas, PN Gadgil) likely drive a big share of revenue. Losing even one major account could hit orders meaningfully. Additionally, several of these clients — like Kalyan and Joyalukkas — have their own manufacturing capabilities and could shift more work in-house.
Gold price volatility feeds directly into both revenue and inventory valuation. A sharp pullback in gold prices could hurt near-term margins.
The asset-light model is efficient but also carries execution risk. Depending on 72 jobworkers and their karigar teams means quality and delivery timelines depend on external parties. Loss of key jobworkers or karigar teams could disrupt production.
The jewellery segment is intensely competitive, with rising B2B and B2B2C players competing for the same retailer clients.