AJC Jewel Manufacturers Limited, a Gujarat-based player in the jewellery manufacturing and wholesale segment, is launching its Initial Public Offering (IPO) on the SME platform, opening for public subscription on June 23, 2025. The issue carries a price band of ₹90 to ₹95 per equity share, with the IPO scheduled to close on June 25, 2025.

The company aims to raise funds primarily through a fresh issue of equity shares, with no offer for sale component, reflecting the promoters’ intent to infuse capital directly into the business for future growth.

IPO Details

• IPO Type: Book Built Issue (SME Segment)

• IPO Open Date: June 23, 2025

• IPO Close Date: June 25, 2025

• Price Band: ₹90 to ₹95 per share

• Issue Size: ₹29.19 crore (approx)

• Face Value: ₹10 per equity share

• Lot Size: 1,200 shares

• Minimum Investment: ₹1,14,000 (Retail Investors)

• Listing Platform: NSE SME

• Registrar: Bigshare Services Pvt Ltd

• Lead Manager: GYR Capital Advisors Pvt Ltd

• Market Maker: Beeline Broking Ltd

The IPO consists solely of a fresh issue of 30.72 lakh equity shares, with proceeds to be used for working capital, retail expansion, marketing initiatives, and general corporate purposes.

About AJC Jewel Manufacturers

Established in 2015, AJC Jewel Manufacturers Limited is engaged in the designing, manufacturing, and wholesale supply of gold and diamond jewellery, focusing primarily on:

• 18K and 22K gold ornaments

• Polki and Jadau jewellery

• Lightweight modern designs

• Bridal and traditional collections for bulk buyers

The company caters to retailers and chain stores across Gujarat, Rajasthan, Maharashtra, and Delhi NCR, and is now eyeing pan-India retail partnerships and exclusive franchise outlets post IPO.

AJC Jewel’s in-house craftsmanship and backward-integrated operations allow them to maintain tight quality control and competitive pricing in the fragmented jewellery manufacturing space.

Financial Snapshot

AJC Jewel Manufacturers has demonstrated steady financial growth over the past three years:

• Revenue (FY24): ₹98.6 crore

• Profit After Tax (FY24): ₹6.14 crore

• EBITDA Margin: ~9.4%

• Net Profit Margin: ~6.2%

• ROE: 18.6%

• ROCE: 17.1%

• Debt-to-Equity Ratio: 0.58

Post-IPO, the company aims to strengthen its balance sheet and scale its brand presence in Tier-1 and Tier-2 cities through strategic retail alliances.

Grey Market Premium (GMP) Update

As of June 20, the Grey Market Premium (GMP) for AJC Jewel Manufacturers IPO is reported in the range of ₹10–₹12, implying a listing gain expectation of around 12–13% at the upper price band of ₹95.

The positive GMP indicates healthy demand from retail and HNI investors, especially in the jewellery SME IPO segment, which has seen multiple successful listings recently.

Peer Comparison

In terms of valuation and business model, AJC Jewel will be compared with:

• Ashapuri Gold Ornament Ltd (NSE SME)

• Kalyan Jewellers (Mainboard)

• Senco Gold Ltd

• Tribhovandas Bhimji Zaveri (TBZ)

While AJC operates at a smaller scale, its growth rate, margin profile, and niche design offerings help it carve out space in India’s highly competitive gold market.

Objectives of the IPO

The primary goals of the issue proceeds are:

• Augment working capital for procurement and inventory

• Open new retail and franchise showrooms

• Strengthen logistics and fulfilment for B2B orders

• Expand digital and marketing capabilities for brand outreach

• General corporate use and contingencies

The company intends to tap into wedding demand, festive sales, and export potential, given the growing demand for custom and handcrafted jewellery.

Risk Factors

While the company offers good growth prospects, investors must consider:

• Exposure to gold price fluctuations

• Heavy reliance on seasonal and wedding demand cycles

• Competition from unorganised sector and branded giants

• Limited geographic footprint (pre-IPO)

Conclusion

The AJC Jewel Manufacturers IPO offers investors an opportunity to participate in the growth of a regional jewellery manufacturer scaling toward national relevance. With reasonable pricing, solid profit margins, and a strong retail pipeline, the IPO is expected to be well-received in the SME space.

Recommendation: Favorable for investors with a medium to long-term view. GMP trend and early subscription should be watched closely for entry signals.

Disclaimer:
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

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