AJC Jewel Manufacturers Limited, engaged in the manufacturing and design of wholesale gold jewellery, is launching its Initial Public Offering (IPO) on June 23, 2025, with the issue closing on June 26, 2025. This is a BSE SME IPO consisting entirely of a Fresh Issue of 16.20 lakh shares, aggregating to ₹15.39 Crores.

The IPO is being offered at a price band of ₹90 to ₹95 per equity share, valuing the company at a post-issue market capitalisation of ₹57.64 Crores. The lot size is 1,200 shares, with a minimum investment of ₹1,14,000 for retail investors and ₹2,28,000 for HNIs applying in 2 lots. The shares are scheduled to be listed on BSE SME on or about Tuesday, July 01, 2025, and the allotment is expected on Friday, June 27, 2025.

SMART HORIZON CAPITAL ADVISORS PRIVATE LIMITED is the Book Running Lead Manager, BIGSHARE SERVICES PVT LIMITED is the Registrar, and Rikhav Securities Limited will act as the Market Maker for the issue.

Business Overview

AJC Jewel Manufacturers is engaged in the design and production of gold jewellery — including plain, studded, and custom-name pieces in both 22K and 18K formats. The company transforms raw gold (bullion) into finished jewellery, which is sold in bulk to dealers, showrooms, corporates, and small retailers.

Founded and promoted by Mr. Ashraf P, who brings over 13 years of experience in the jewellery sector, the business leverages his understanding of customer demands and wholesale market dynamics.

Financial Performance

The company has seen steady growth in top and bottom lines over the last few years. Financials are as follows:

• Revenue from Operations:

  • Dec 2024 (9 months): ₹17,552.73 Lakh

  • FY24: ₹24,684.14 Lakh

  • FY23: ₹19,424.78 Lakh

  • FY22: ₹12,739.68 Lakh

• EBITDA:

  • Dec 2024: ₹412.04 Lakh

  • FY24: ₹634.78 Lakh

  • FY23: ₹400.72 Lakh

  • FY22: ₹214.55 Lakh

• Profit After Tax (PAT):

  • Dec 2024: ₹185.32 Lakh

  • FY24: ₹331.94 Lakh

  • FY23: ₹203.89 Lakh

  • FY22: ₹126.19 Lakh

These numbers reflect a gradual improvement in financial performance, although not exceptionally strong when compared with industry peers.

Key Financial Ratios & Valuation Metrics

• Pre-Issue EPS (FY24): ₹8.24

• Post-Issue EPS (FY24): ₹5.47

• Annualised EPS (FY25 est.): ₹4.07

• Pre-Issue P/E Ratio: 11.53x

• Post-Issue P/E Ratio: 17.37x

• Annualised P/E Ratio: 23.33x

• Industry Average P/E: 19x

• Return on Capital Employed (ROCE): 17.47%

• Return on Equity (ROE): 34.64%

• Return on Net Worth (RoNW): 27.56%

These metrics suggest that the IPO is moderately priced, but not undervalued, leaving little headroom for immediate listing gains.

Grey Market Premium (GMP) and Market Sentiment

As of June 19, 2025, the Grey Market Premium (GMP) for AJC Jewel Manufacturers IPO is reported at ₹0, indicating no speculative premium and lack of investor enthusiasm. The expected listing price is ₹95, same as the upper band of the IPO price.

It is important to note that GMP is unofficial and unregulated, and thus should not be used as the sole indicator for investment decisions.

IPO Objectives – Use of Proceeds

AJC Jewel Manufacturers plans to utilise the IPO proceeds as follows:

1. ₹262.55 Lakhs for purchase of new equipment to support capital expansion

2. ₹890.00 Lakhs for repayment/prepayment of certain borrowings

3. Remaining balance for general corporate purposes

This allocation suggests a focus on debt reduction and capacity building, but lacks aggressive growth initiatives that might excite retail investors.

Allotment Status – How to Check

Investors can check the IPO allotment status on BIGSHARE SERVICES website by:

1. Visiting the IPO allotment status portal

2. Selecting "AJC Jewel Manufacturers Limited IPO"

3. Entering Application Number / PAN / DP Client ID

4. Submitting to view allotment result

Allotment will be declared on or around June 27, 2025.

Final Verdict: Avoid for Listing Gains

While AJC Jewel Manufacturers demonstrates reasonable financial consistency and a well-defined business model, its GMP of ₹0, high valuation multiples relative to SME risk profile, and lack of strong growth catalysts make it an unattractive bet for listing gains.

Retail investors should note the relatively high investment threshold (₹1.14 lakhs) and low liquidity typical of SME platforms, which further increases investment risk.

Hence, we recommend investors to AVOID this IPO for listing gains. Long-term investors with high-risk tolerance may track its future developments post-listing before considering an entry.

Disclaimer:
This article is strictly for educational and informational purposes only and should not be construed as financial advice. IPO investments are subject to market risks, and past performance is not indicative of future results. Investors should consult their financial advisors and make investment decisions aligned with their risk appetite. The IPO review is based on publicly available information as of the date of writing and is subject to change without notice.

The Upcoming IPOs in this week and coming weeks are Supertech EV, Valencia India, Neetu Yoshi, Abram Food, PRO FX Tech, Suntech Infra Solutions, Shri Hare-Krishna Sponge Iron, Icon Facilitators, Ace Alpha Tech, Globe Civil Projects, Sambhav Steel Tubes, Ellenbarrie Indutrial Gases, Kalpataru, HDB Financials, AJC Jewel.

The Current active IPO are  Aakaar Medical Technologies, Safe Enterprises Retail Fixtures, Mayasheel Ventures.

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