AJC Jewel Manufacturers, a leading player in the wholesale gold jewellery segment, has opened its Initial Public Offering (IPO) for subscription on June 23, 2025, and will remain open until June 26, 2025. The IPO is a Book Built Issue amounting to ₹15.39 crores, consisting entirely of a fresh issue of 16.20 lakh equity shares. The price band for the IPO is set between ₹90 and ₹95 per share, and the shares are proposed to be listed on the BSE SME platform.

The market capitalisation of AJC Jewel Manufacturers, based on the upper price band of ₹95 per equity share, stands at ₹57.64 crores. The minimum lot size for retail investors is 1,200 shares, translating to a minimum investment of ₹1,14,000, while High-Net-Worth Individuals (HNIs) are required to invest in at least two lots, or 2,400 shares, amounting to ₹2,28,000.

The issue is being managed by SMART HORIZON CAPITAL ADVISORS PRIVATE LIMITED as the book running lead manager, while BIGSHARE SERVICES PVT LIMITED is serving as the registrar. Additionally, Rikhav Securities Limited is acting as the Market Maker for the IPO.

Business Overview

AJC Jewel Manufacturers is primarily engaged in designing, manufacturing, and wholesale distribution of gold jewellery, including plain gold, studded, and named jewellery, available in 22K and 18K variants. The company manufactures finished gold jewellery from raw bullion and consumables, selling the products to a variety of wholesale channels including dealers, showrooms, corporates, and small jewellery stores across India.

The firm is led by Mr. Ashraf P, Promoter and Managing Director, who brings 13 years of experience in the jewellery industry, and has shaped the company’s direction based on his deep understanding of market trends.

Financial Performance

The financials of AJC Jewel Manufacturers have shown consistent growth. Below are the key highlights:

• Revenue from operations:

  • FY2022: ₹12,739.68 lakh

  • FY2023: ₹19,424.78 lakh

  • FY2024: ₹24,684.14 lakh

  • 9M FY2025 (up to Dec 31, 2024): ₹17,552.73 lakh

• EBITDA:

  • FY2022: ₹214.55 lakh

  • FY2023: ₹400.72 lakh

  • FY2024: ₹634.78 lakh

  • 9M FY2025: ₹412.04 lakh

• Profit After Tax (PAT):

  • FY2022: ₹126.19 lakh

  • FY2023: ₹203.89 lakh

  • FY2024: ₹331.94 lakh

  • 9M FY2025: ₹185.32 lakh

These numbers indicate a steady upward trajectory in both revenue and profit, a positive signal for long-term investors.

From a valuation perspective, the pre-issue EPS (FY24) is ₹8.24, while post-issue EPS is ₹5.47. The pre-issue P/E ratio is 11.53x, and the post-issue P/E is 17.37x, compared to an industry average of around 19x, which suggests that the IPO is fairly valued.

Other key metrics include:

• ROCE (FY24): 17.47%

• ROE (FY24): 34.64%

• RoNW: 27.56%

• Annualised EPS: ₹4.07

• Annualised P/E ratio: 23.33x

Use of IPO Proceeds

The company plans to utilise the net proceeds from the IPO towards:

1. ₹262.55 lakhs for capital expenditure for the purchase of new equipment.

2. ₹890.00 lakhs for repayment/prepayment of borrowings.

3. Balance for general corporate purposes.

These investments aim to strengthen the company’s manufacturing capabilities and reduce financial liabilities.

Anchor Investor Participation

On June 22, 2025, AJC Jewel Manufacturers successfully raised ₹4.29 crores from anchor investors, allocating 4,52,400 shares at ₹95 per share. This pre-subscription via anchor allotment reflects moderate institutional confidence in the business fundamentals and valuation.

IPO Subscription Status

As of 11:00 AM on June 24, 2025, the live IPO subscription status shows that the issue has been subscribed 0.29 times on the second day of the subscription period. While this indicates a slow but ongoing interest, the final day will be crucial for subscription figures.

Grey Market Premium (GMP)

Despite a solid financial background and fair pricing, the Grey Market Premium (GMP) for AJC Jewel Manufacturers IPO stands at ₹0, with an expected listing price of ₹95, which matches the upper band of the issue. This implies zero expected listing gains, and minimal speculative interest from grey market participants.

It's important to note that GMP is unofficial and unregulated, based purely on market demand and supply in the unorganised space. It is not an indicator of final listing price and should be considered only for informational purposes.

Allotment and Listing Timeline

• IPO closes: June 26, 2025

• Basis of allotment: June 27, 2025

• Refund initiation: June 28, 2025

• Credit of shares in demat account: June 30, 2025

• Tentative listing date on BSE SME: July 1, 2025

Investors can check their allotment status by visiting the registrar's website, selecting the IPO from the dropdown, and entering their PAN, application number, or DP ID.

Expert Review & Recommendation

From a fundamental standpoint, AJC Jewel Manufacturers shows solid business growth, profitability, and efficient capital usage. The company's steady revenue growth, expanding EBITDA, and positive cash flows reflect a sustainable business model.

However, the lack of grey market enthusiasm, modest subscription levels, and absence of expected listing gains are cautionary signals for those looking for short-term profits.

Therefore, analysts recommend avoiding the IPO for listing gains, although long-term investors with a high-risk appetite and belief in the gold jewellery sector may consider it after further due diligence.

Final Thoughts

The AJC Jewel Manufacturers IPO offers a peek into a steadily growing business in the Indian jewellery manufacturing industry. With a strong promoter background, improving financials, and efficient use of proceeds, the company seems ready for the next phase of expansion. However, flat GMP, and a lukewarm investor response highlight the lack of excitement in the short term.

This IPO is a classic case of a good business facing limited listing momentum, making it more suitable for long-term investors than those aiming for quick returns.

Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. The content is based on publicly available information and market perceptions as of the date of publication and is subject to change. Neither the author nor the website is responsible for any losses or damages arising from the use of this information. 1.“Registration granted by SEBI, membership of a SEBI recognized supervisory body (if any) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.” 2. “Investment in securities market are subject to market risks. Read all the related documents carefully before investing.” 3. To read the Disclaimers, Disclosures, Investor Charter, Investor Complaints please visit our website abhayvarn.com

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