Shankesh Jewellers Limited IPO Date, Price, GMP, Review, Details

Overview

Shankesh Jewellers Limited is a Mumbai-based jewellery company engaged primarily in the wholesale business of hand-crafted gold jewellery and customised jewellery solutions. The Company operates from Zaveri Bazaar, Mumbai, and has a pan-India customer base comprising both corporate and non-corporate jewellery businesses. It was originally incorporated as H.K. Gold Private Limited in 2005 and subsequently became Shankesh Jewellers Limited in April 2025. The business is managed by Kantilal Jain and his two sons, Mahavir Kantilal Jain and Manoj Kantilal Jain.

The Company follows an asset-light operating model and does not undertake manufacturing in-house. Instead, it works with specialised local artisans, or Karigars, through jobworkers. During Fiscal 2026, it was associated with 72 jobworkers, of whom 66 had entered into agreements with the Company. The Company manages the design, sourcing, quality control and delivery processes, while the actual craftsmanship is undertaken by these job workers. This model allows Shankesh to offer customised products without maintaining a large in-house manufacturing infrastructure, providing flexibility in responding to changing customer requirements.

Its product portfolio focuses on 22-karat and 18-karat handcrafted gold jewellery and spans a broad range of categories, including antique, semi-antique, Calcutta, temple and Gheru jewellery, as well as yellow, rhodium and rose-gold finishes. Products include bangles, bridal jewellery, chokers, jhumkas, necklace sets, mangalsutras, rings, mang tikkas and combination sets. The Company also undertakes customised job work where customers provide bullion and specific design requirements. Its jewellery is stated to be BIS-hallmarked.

A key aspect of the business is its established relationships with jewellery retailers and brands. Its disclosed corporate clientele includes Joyalukkas, P. N. Gadgil, Kalyan Jewellers, Novel Jewels and other jewellery businesses. The Company positions its broad product range, customisation capability, craftsmanship and delivery reliability as key factors supporting these relationships. It also has an established network of designers and artisans, with three designers and approximately 20 years of cumulative design experience among them.

The business operates in a fragmented Indian wholesale jewellery market, where organised manufacturers are gradually gaining importance due to formalisation, GST compliance, mandatory hallmarking and increasing consumer preference for certified jewellery. However, Shankesh also faces competition from both organised players and traditional unorganised manufacturers. The Company’s dependence on third-party job workers is an operational consideration, while changes in gold prices can affect inventory requirements and working capital needs.

Demand is also influenced by weddings, festivals, consumer spending and gold prices. Since the Company primarily operates as a B2B supplier, its performance is indirectly linked to its customers’ ability to sell jewellery to end consumers. Any slowdown in discretionary spending, loss of customers, changes in consumer preferences or increased competition could therefore affect demand.

IPO Details

Object of the Offer

Key Strengths

• Established Relations with Corporate and Non-Corporate Jewellery Clients
  The Company has established relationships with leading corporate jewellery brands, including Joyalukkas India Limited, P. N. Gadgil & Sons Ltd., Kalyan Jewellers India Limited and Bhima Jewellers Madurai. It also serves a broad base of non-corporate jewellery clients, which contributed ₹476.93 crore, ₹620.45 crore and ₹583.08 crore in revenue during Fiscals 2024, 2025 and 2026 respectively, accounting for 44.92%, 44.20% and 35.76% of revenue from operations. Customer concentration remains moderate, with the largest client contributing 6.12% of revenue in Fiscal 2026, while the top five and top ten clients accounted for 23.26% and 39.56% of revenue respectively. No single client contributed more than 6.45% of revenue during the last three Fiscals. These relationships have been supported by the Company’s focus on quality control, product customisation and timely delivery.

• Asset-Light Business Model
  The Company operates primarily on an asset-light model, engaging Karigars as job workers to handcraft jewellery based on client specifications rather than maintaining its own manufacturing infrastructure. This approach reduces the need for significant investment in manufacturing facilities and provides flexibility to manage changing demand and product requirements. The Company manages design, sourcing, quality control and delivery, while production is undertaken by its network of job workers. In addition to supplying finished jewellery to corporate and non-corporate clients, the Company undertakes job work where clients provide bullion and specific design requirements, with the finished jewellery subsequently delivered to them.

• Long-Term Relationships with Local Jobworkers for Custom Hand-Crafted Jewellery
  The Company has established long-term relationships with local jobworkers, with 66 jobworkers having executed prescribed agreements, most of whom are based in Mumbai. The Company engaged 90, 87 and 72 job workers in Fiscals 2024, 2025 and 2026 respectively. Manufacturing is predominantly outsourced to experienced Karigars specialising in plain and studded gold jewellery, while the Company’s in-house designers develop designs based on current trends and customer requirements. Jewellery produced by the jobworkers undergoes multiple rounds of quality verification by the Company, including review by the Promoters, before completion and delivery to customers.

Key Risks

• Negative and Negligible Cash Flow from Operating Activities
  The Company has reported weak cash generation from operations, with net cash flow from operating activities of negative ₹23.11 crore in Fiscal 2025 and only ₹0.33 crore in Fiscal 2026, despite operating profit before working capital changes of ₹64.78 crore in Fiscal 2025. The Fiscal 2025 outflow was primarily due to a ₹39.07 crore increase in trade receivables and a ₹30.16 crore increase in inventories. Cash flow from investing activities also remained negative at ₹12.70 crore, ₹2.90 crore and ₹1.01 crore in Fiscals 2024, 2025 and 2026 respectively. Continued business growth could increase working-capital requirements and create further mismatches between reported profitability and actual operating cash generation.

• Significant Indebtedness and Restrictive Covenants
  The Company had total outstanding borrowings of ₹167.30 crore as of March 31, 2026, with a debt-equity ratio of 0.81, compared with 1.45 in Fiscal 2025 and 1.82 in Fiscal 2024. Its financing arrangements contain restrictive covenants covering changes in ownership, shareholding and management control; amendments to constitutional documents; certain new projects or capital expenditure; and corporate reorganisations. The agreements also require compliance with specified financial ratios, including current ratio, TOL/Adjusted TNW and Total Debt/PBDIT. A breach of these covenants could result in cross-default or cross-acceleration, potentially allowing lenders to demand early repayment and enforce security.

• Complete Dependence on Third-Party Jobworkers Concentrated in Maharashtra
  All production and manufacturing are carried out by third-party jobworkers who employ or deploy Karigars, and these have been based in Mumbai, Maharashtra, for the last three Fiscals, as on the date of the RHP. The number of associated job workers fell from 90 in Fiscal 2024 to 87 in Fiscal 2025 and to 72 in Fiscal 2026, of whom 66 have entered into the Company’s prescribed agreement. Because manufacturing is typically arranged through product-specific purchase orders, the Company may be unable to replace job workers at short notice and could face production delays and additional costs while identifying replacements.

Financial Snapshot

Peer Comparison

Conclusion

Shankesh Jewellers operates a handcrafted gold jewellery business with an asset-light model, an established network of job workers and a diversified customer base comprising corporate and non-corporate jewellery clients. Its product portfolio includes traditional and customised jewellery across multiple categories, supported by in-house design capabilities and quality-control processes. At the same time, the Company’s operations involve dependence on third-party workers, working capital requirements and customer orders, without long-term contractual commitments. Overall, the Company’s business profile reflects a combination of established industry relationships, customised offerings and an outsourced manufacturing model, alongside operational and customer-related considerations relevant to investors evaluating the IPO.