Shankesh Jewellers Limited IPO

The company's business and the demand for its product is reliant on the success of the company's customers' products with end consumers, and any decline in the demand for the end-products could have an adverse impact on the company's business, results of operations, cash flows and financial condition.

Jewellery purchases are discretionary and often perceived as luxury purchases. Any factor negatively impacting discretionary spending by consumers may adversely affect its business, results of operations, financial condition and prospects.

A significant portion of the company's business operations and revenue generation is concentrated in the Top 5 states (Tamil Nadu, Maharashtra, Uttar Pradesh, Bihar, Odissa and Andhra Pradesh) which contributed to 63.67%, 62.00% and 60.41% of the company's revenue from operations in Fiscal 2025, Fiscal 2024 and Fiscal 2023. This regional concentration could expose the Company to economic, cultural, geopolitical and local market risks.

The company operates in a high-value commodity sector and there are certain security risks associated with the transit and delivery of gold jewellery, including potential loss or theft.

The company is dependents on third party Jobworkers for the production and manufacturing of all of the company's products. Any disruptions at such third-party production or manufacturing facilities, or shortage or scarcity of Karigars employed or deployed such Jobworkers in the jewellery industry in Maharashtra or failures of such third parties to adhere to the relevant quality standards may have a negative effect on the company's reputation, business and financial condition and results of operations.

The company is subjects to strict quality requirements, and sales of the company's products is dependent on the company's quality controls and standards, which has resulted in certain instances of the company's products being returned by the company's customers. Any failures to comply with quality standards may adversely affect its business prospects, cash flows and financial performance, including cancellation of existing and future orders.

The company's funding requirements and proposed deployment of the Net Proceeds of the Offer have not been appraised by a bank or a financial institution, and the proposed utilization of Net Proceeds is based on, amongst others, the company's current business plan and management estimates, and if there are any delays or cost overruns, the company's business, cash flows, financial condition and results of operations may be adversely affected.

The company has incurred significant indebtedness which exposes the company to various risks which may have an adverse effect on the company's business, results of operations and financial conditions. Conditions and restrictions imposed on the company by the agreements governing the company's indebtedness could adversely affect its ability to operate the company's business.

The company's manufacturing work is done by skilled Karigars, who does not work exclusively for the company which exposes the company to any risks/adverse developments affecting the skilled Karigars.

Volatility in the market price of gold has a bearing on the value of the company's inventory and could affect its income, profitability and scale of operations.