Shankesh Jewellers Shares Make Decent Debut, Stock Lists With 9% Premium

Shares of Shankesh Jewellers made their debut on the NSE and the BSE on August 25. On the BSE, the stock listed at Rs 102 per share, up 9.6 per cent from the upper end of the price band of Rs 93 apiece on the exchanges. On the NSE, the stock was listed at Rs 103.3 per share, up by 11.07 per cent over the issue price.

Shankesh Jewellers IPO: Listing Day Gain

Applicants who were successfully allotted a minimum of one lot or 160 shares would have made a profit of around Rs 1,600 [(Rs 103.3 - Rs 93) x 160] after the stock listed on the exchanges. The jewellery maker's market capitalisation stands at Rs 1502.66 crore after listing, and 4.27 lakh shares of the company changed hands.

Shankesh Jewellers IPO: Offer Size

The initial public offering (IPO) was a book-built issue worth Rs 367.18 crore and consisted of a fresh issue of 29.5 million shares worth Rs 274.18 crore and an offer for sale (OFS) of 10 million shares amounting to Rs 93 crore. The price band was fixed at Rs 88-93 per share. The minimum lot size for retail investors was fixed at 160 shares, aggregating to an investment of Rs 14,880.

Shankesh Jewellers IPO: Subscription

The IPO saw modest demand and was oversubscribed 2.80 times during its subscription period from August 18-20. Investors across categories placed bids for 77.4 million shares compared to the net offer size of 27.6 million shares available after anchor allocations.

The non-institutional investors (NII) booked their quota in Shankesh Jewellers IPO 5.68 times. Retail investor booked their quota 2.42 times, while the qualified institutional buyers (QIB) quota was subscribed 1.32 times.

Shankesh Jewellers: Promoters

The promoters of the jewellery brand, Kantilal Kheemraj Jain, Mahavir Kantilal Jain, and Manoj Kantilal Jain, diluted a portion of their stakes (specifically Kantilal Kheemraj Jain and Manoj Kantilal Jain through the OFS). Following the listing of the stock, the promoter shareholding has reduced to 69.53 per cent from 95.48 per cent prior to the public issue.

Shankesh Jewellers: Listed Peers

Following its market debut, shares of Shankesh Jewellers will trade alongside its peers in the Indian gems and jewellery sector. With a presence in handcrafted gold jewellery catering to corporate and non-corporate clients, Shankesh Jewellers’ performance and valuation will be closely tracked and compared against other listed peers, such as the recently listed Lalithaa Jewellery Mart, Advit Jewels, and PNGS Reva Diamond Jewellery.

Shankesh Jewellers IPO: Objective

The company will use the net proceeds from the fresh issue for the repayment or pre-payment, in full or part, of certain borrowings (Rs 158 crore), funding working capital requirements (Rs 38 crore), and for general corporate purposes.