AJC Jewel Manufacturers Limited, a Kerala-based wholesale gold jewellery manufacturer, made its public debut on July 01, 2025, on the BSE SME platform, listing at ₹99 per share, a 4.2% premium over its IPO issue price of ₹95. This modest yet positive debut underlines investor confidence in a highly competitive and sentiment-sensitive sector.

The company floated a Book Built IPO amounting to ₹15.39 Crores, which was entirely a fresh issue of 16.20 lakh equity shares. The IPO was open for subscription between June 23 and June 26, 2025, and saw healthy investor response, being subscribed 2.91 times by the close of bidding.

The price band for the issue was set at ₹90 to ₹95 per share, and at the upper band of ₹95, AJC Jewel’s post-issue market capitalisation stood at approximately ₹57.64 Crores. The minimum lot size for retail investors was 1,200 shares, requiring an investment of ₹1,14,000. For HNIs, the minimum application was for 2 lots (2,400 shares), amounting to ₹2,28,000.

IPO Structure and Listing Details

The company finalized allotments on June 27, 2025, and shares were listed on the BSE SME platform on July 01, 2025. Despite a ₹0 grey market premium (GMP) prior to listing, the company managed to attract a positive market reception, suggesting that fundamental valuation and business prospects, rather than speculative interest, drove demand.

SMART HORIZON CAPITAL ADVISORS PRIVATE LIMITED acted as the Book Running Lead Manager, BIGSHARE SERVICES PVT LIMITED served as the Registrar, and Rikhav Securities Limited was the Market Maker.

Anchor Investor Participation

Before the public issue opened, AJC Jewel raised ₹4.29 Crores from Anchor Investors, allocating 4,52,400 shares at ₹95 per share. This pre-IPO investment added credibility to the offering and offered confidence to other categories of investors.

Company Overview

AJC Jewel Manufacturers Limited is primarily involved in the design and manufacturing of wholesale gold jewellery, including plain gold, studded, and personalized named jewellery. These are offered in 22K and 18K variations and sold in bulk quantities to dealers, showrooms, corporates, and small jewellery retailers.

As of December 31, 2024, the revenue mix was:

• Studded Jewellery – 42.12%

• Plain Gold Jewellery – 33.45%

• Named Jewellery – 6.34%

The product range includes Rings, Bracelets, Bangles, Anklets, Earrings, Pendants, Necklaces, and customized pieces for men, women, and children. The company’s design process combines in-house CAD design teams and freelance artisans to stay aligned with the latest fashion trends and cultural preferences.

The manufacturing facility is located at Inkel Greens Edu City in Malappuram, Kerala, and spans 21,780 sq. ft., equipped with 3D printers, Wax Injectors, Casting Machines, and Polishing Equipment. The plant supports end-to-end in-house production, ensuring quality control and faster time to market.

As of February 28, 2025, the company had a total workforce of 67 employees, deployed across manufacturing and administrative functions.

Use of IPO Proceeds

AJC Jewel intends to deploy the IPO proceeds as follows:

1. ₹262.55 Lakhs – For capital expenditure related to purchase of new manufacturing equipment.

2. ₹890.00 Lakhs – For repayment/prepayment of borrowings to improve financial stability.

3. Remaining proceeds – For general corporate purposes, which include working capital, branding, and expansion initiatives.

Industry Analysis: Indian Jewellery Market 2025

The Indian jewellery market is witnessing a paradoxical trend in 2025. On one hand, gold prices have surged, crossing the $3,000/oz mark due to global economic uncertainties, USD weakness, and central bank gold buying. On the other, this has led to a drop in discretionary jewellery buying, with customers delaying purchases and shifting towards scrap gold exchanges or gold-backed loans.

Despite this short-term demand challenge:

• Gold ETFs are gaining popularity, with rising AUM and record folio growth.

• RBI continues its strategy of gold reserve diversification, showing faith in the yellow metal.

• India’s gold imports fell 63% YoY in February 2025, indicating price-led demand fatigue.

This macro backdrop presents both challenges and opportunities for players like AJC Jewel. While retail demand may soften in the short term, wholesale B2B sales, diversified SKUs, and custom orders still offer growth avenues.

Business Strengths

1. Comprehensive Product Range
   Offers gold jewellery in various forms and karats tailored for all demographics, backed by trend-focused design and CAD technology.

2. Experienced Leadership
   Led by Ashraf P, with over 13 years of experience, supported by artisans and a modern design team.

3. Strong Dealer Network
   Long-standing relationships with wholesalers and retailers ensure repeat orders and brand loyalty.

4. Integrated Manufacturing Facility
   Advanced infrastructure supports seamless production, quality control, and custom client orders.

Strategic Business Plans

1. Manufacturing Automation
   Plans to invest in modern equipment to enhance production output and reduce manual dependency.

2. Debt Reduction
   Focus on improving financial stability by repaying loans, thereby reducing interest costs and enhancing profitability.

3. Portfolio Expansion
   Introduction of newer, trendier designs using insights from exhibitions and in-house creativity.

4. Operational Efficiency
   Emphasis on lean operations, employee skill enhancement, and process automation.

Business Risks & Concerns

1. Raw Material Dependency
   No long-term contracts with gold or consumables suppliers make the company vulnerable to price volatility.

2. Geographic Concentration – Kerala
   A large portion of revenue comes from Kerala. Any regional disruption could impact sales and logistics.

3. International Exposure – UAE
   Revenue exposure to UAE introduces currency and geopolitical risks.

4. Product Line Concentration
   Heavy reliance on few jewellery categories like studded and plain gold may impact financials if demand shifts.

Conclusion

AJC Jewel Manufacturers' debut on the BSE SME platform with a 4.2% listing premium underscores a cautious but positive investor sentiment. Despite the absence of GMP activity, the IPO was well-received and the company has presented a clear roadmap for expansion, automation, and financial restructuring.

With a diverse product portfolio, robust B2B relationships, and an integrated manufacturing setup, AJC Jewel is positioned to leverage the next phase of growth in the organised wholesale jewellery market. However, it must carefully manage supplier risk, geographical concentration, and market fluctuations to ensure sustainable growth and investor value creation in the long run.

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