• IPO details: Shankesh Jewellers is launching an approximately ₹370 crore IPO priced between ₹88 and ₹93 per share, consisting of a fresh issue of ₹274 crore and an offer for sale of ₹93 crore.
• Product revenue mix: Handcrafted 22-karat jewellery accounts for 80% of revenue while 18-karat contributes 20%, with 18-karat gaining market share and offering higher margins due to a 15% weight reduction and rising gold prices.
• EBITDA margin drivers: EBITDA margins increased from 2.7% to 9.7% over three years because making charges are linked to a percentage of the gold price, generating higher absolute rupee realizations as gold rates rise.
• Gold price sensitivity: Management expects minimal margin impact if gold prices decline, noting that lower prices typically drive higher sales volume and shift consumer demand back toward heavier jewellery.