AJC Jewel Manufacturers Limited, a Gujarat-based manufacturer and exporter of gold and diamond-studded jewellery, is set to launch its Initial Public Offering (IPO) on June 25, 2025, through the NSE SME platform. The issue comprises a 100% fresh equity offering, aimed at raising ₹41.20 crore from the public.

AJC Jewel Manufacturers IPO Details

About AJC Jewel Manufacturers Limited

Founded in 2017, AJC Jewel Manufacturers Limited is engaged in the manufacturing and wholesale export of intricately designed gold, diamond, and polki-studded jewellery. The company specialises in:

• Gold bridal jewellery

• Kundan, Meena, Polki work

• Bespoke high-end diamond jewellery

• Lightweight modern designs for export markets

AJC Jewel primarily serves clients in Middle East, Europe, and North America, including major wholesalers and retailers. It operates from a manufacturing facility in Rajkot, Gujarat, equipped with CAD/CAM design units, casting setups, and hand-finishing stations.

Use of IPO Proceeds

The net proceeds from the IPO will be utilised for:

1. Working Capital Requirements – Expansion of manufacturing and export pipeline

2. Capital Expenditure – Equipment upgrades for precision casting and stone-setting

3. Brand Development – Digital and B2B market outreach

4. General Corporate Purposes – Operations and contingencies

5. Issue Expenses – Lead manager, legal, registrar, listing fees

Company Financials

Key Ratios (FY24):

• EPS (Pre-Issue): ₹11.07

• EPS (Post-Issue): ₹5.97

• P/E Ratio (Post-Issue): 15.75x

• ROE: 29.69%

• ROCE: 33.87%

• Debt/Equity: 0.34

The company has demonstrated consistent revenue growth, strong profit margins, and high return ratios, supported by operational efficiency and export demand.

Promoters and Management

• Mr. Dineshbhai Patel – Chairman and Managing Director with 20+ years in jewellery craftsmanship and exports

• Mr. Rajiv Patel – CFO, experienced in precious metals procurement and hedging strategies

• Mrs. Jayshree Patel – Head of Design and Merchandising, managing trends and customisation

The promoter holding will dilute post-issue but remains substantial, indicating confidence in long-term vision.

Industry Overview

The Indian gems and jewellery sector is expected to grow at 8–10% CAGR, driven by:

• Export revival post-pandemic

• Rising global demand for handcrafted and ethnic jewellery

• Government incentives for SEZ-based exporters

• Demand from GCC, US, and Europe for lightweight gold designs

SMEs like AJC Jewel stand to benefit from the Make in India initiative and the reduced import duty on gold, which improves competitiveness.

Grey Market Premium (GMP)

As of June 19, 2025, Grey Market Premium (GMP) is reportedly ₹5–₹7, indicating marginal listing gains of 5–7%. However, GMP can fluctuate and is not a reliable indicator of listing performance.

IPO Strengths

• Consistent financial growth and profitability

• Strong export market presence with diversified clientele

• High ROE and ROCE indicating efficient capital deployment

• Sector tailwinds and favourable regulatory climate

IPO Risks

• Volatility in gold and diamond prices affects margins

• Export dependency creates FX and geopolitical risks

• SME IPOs typically suffer from lower post-listing liquidity

• A slowdown in global luxury demand could impact topline

Peer Comparison

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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