Shankesh Jewellers IPO Listing: Stock Lists At 11% Premium Over IPO Price

Shankesh Jewellers IPO Listing: Shares of Mumbai-based jewellery maker Shankesh Jewellers made their debut on the stock exchanges on Tuesday, August 25, opening well above their issue price. The stock listed at ₹103.30 on the NSE, a premium of 11.08% over the IPO price of ₹93. On the BSE, it opened at ₹102.20, up 9.89% from the issue price.

Ahead of the listing, Shankesh Jewellers shares were commanding a grey market premium (GMP) of ₹2 per share, pointing to a potential listing premium of around 2.15% over the upper price band. The actual debut, however, was significantly stronger than the grey market indication.

A single lot of the IPO comprised 160 shares and cost ₹14,880 at the upper end of the price band. Based on the NSE listing price, investors who received an allotment gained around ₹1,648 per lot, taking the total value of their holding to ₹16,528.

The ₹367.18-crore public issue was open for bidding over three days, from August 18 to August 20, and was subscribed 2.8 times overall. The company received bids for 7.74 crore shares against 2.76 crore shares on offer, as per NSE data. Non-institutional investors led the demand, bidding 5.68 times their reserved portion. The retail category was subscribed 2.42 times, while qualified institutional buyers bid 1.32 times their allotted quota.

The price band for the issue was fixed at ₹88 to ₹93 per share, with a minimum bid lot of 160 shares requiring an investment of ₹14,880 at the upper end. At the upper end of the price band, Shankesh Jewellers was valued at around ₹1,367 crore.

Ahead of the IPO opening, the company raised ₹110.15 crore from anchor investors at ₹93 per share, the upper end of the price band. More than 1.18 crore shares were allotted to 14 anchor investors, including Tiger Strategies Fund-I, Necta Bloom VCC, Venus Investment VCC, Zeal Global Opportunities Fund, ASAS Global Fund and Uni Growth Fund. The anchor book did not include domestic mutual funds, life insurance companies or pension funds.

IPO Structure And Use Of Proceeds

The issue comprised a fresh issue of shares worth ₹274.18 crore and an offer for sale of up to 1 crore shares worth ₹93 crore by promoters Kantilal Kheemraj Jain and Manoj Kantilal Jain. Proceeds from the fresh issue will be used towards repayment or prepayment of borrowings, funding working capital requirements and general corporate purposes.

In its red herring prospectus, the company said the listing of its equity shares is expected to strengthen its capital base and improve brand visibility among existing and prospective customers.

Incorporated in 2005, Shankesh Jewellers manufactures customised handcrafted gold jewellery in 18-karat and 22-karat purity. Its product range spans bridal jewellery, chokers, bangles, jhumkas, necklace sets, mangalsutras and rings across styles including Calcutta, antique, semi-antique, temple, gheru polish and yellow, rhodium and rose gold jewellery.

The company operates on a B2B model, supplying jewellers such as Joyalukkas India, P N Gadgil & Sons, Kalyan Jewellers India and Novel Jewels, a part of the Aditya Birla Group.

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