AJC Jewel Manufacturers, a wholesale gold jewellery manufacturing company in India, has launched its Initial Public Offering (IPO) on June 23, 2025, and the issue will remain open till June 26, 2025. The IPO is a Book Built Issue with a total size of ₹15.39 crores, consisting solely of a Fresh Issue of 16.20 lakh equity shares. This BSE SME listing aims to raise capital to support business expansion and repay borrowings.

The price band for this IPO has been set between ₹90 to ₹95 per share. At the upper price band of ₹95, the company's estimated market capitalisation stands at ₹57.64 crores. The lot size is 1,200 shares, making the minimum investment for retail investors ₹1,14,000. High-Net-Worth Individuals (HNIs) are required to apply for at least 2 lots, equating to an investment of ₹2,28,000.

The lead manager for the IPO is Smart Horizon Capital Advisors Private Limited, while Bigshare Services Pvt Ltd serves as the registrar. The market-making responsibility lies with Rikhav Securities Limited.

Business Overview

AJC Jewel Manufacturers is engaged in the designing and manufacturing of a wide range of wholesale gold jewellery. Their products include plain gold, studded, and name-specific jewellery, primarily available in 22K and 18K gold. The company handles end-to-end production, converting raw gold (bullion) into finished jewellery, which it supplies to dealers, showrooms, corporates, and smaller jewellery shops.

This end-to-end model gives AJC control over its quality, costs, and delivery timelines, thereby allowing it to maintain consistency in its product offerings.

The company is promoted by Mr. Ashraf P, who has over 13 years of experience in the gold jewellery business. He plays a pivotal role in crafting the company’s growth strategy and has helped align the business with current market demands.

Financial Performance

The financial performance of AJC Jewel Manufacturers over recent fiscal years presents a steady growth trajectory:

• Revenue from operations:

  • FY 2022: ₹12,739.68 lakh

  • FY 2023: ₹19,424.78 lakh

  • FY 2024: ₹24,684.14 lakh

  • 9 months ending Dec 31, 2024: ₹17,552.73 lakh

• EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization):

  • FY 2022: ₹214.55 lakh

  • FY 2023: ₹400.72 lakh

  • FY 2024: ₹634.78 lakh

  • 9 months ending Dec 31, 2024: ₹412.04 lakh

• Profit After Tax (PAT):

  • FY 2022: ₹126.19 lakh

  • FY 2023: ₹203.89 lakh

  • FY 2024: ₹331.94 lakh

  • 9 months ending Dec 31, 2024: ₹185.32 lakh

These numbers reflect a company that is growing sustainably, showing rising revenues and profits across years, albeit at a modest pace. However, the IPO valuation metrics are crucial to determine whether the shares are attractively priced.

Valuation Metrics

The key pre-issue and post-issue financial ratios are as follows:

• Pre-issue EPS (FY24): ₹8.24

• Post-issue EPS (FY24): ₹5.47

• Pre-issue P/E Ratio: 11.53x

• Post-issue P/E Ratio: 17.37x

• Industry P/E Ratio: 19x

• Return on Capital Employed (ROCE): 17.47%

• Return on Equity (ROE): 34.64%

• Return on Net Worth (RoNW): 27.56%

• Annualised EPS: ₹4.07

• Annualised P/E: 23.33x

The IPO appears fairly priced when compared with the broader industry P/E of 19x, but when considering annualised earnings, it leans toward being slightly expensive. Investors must consider whether the premium pricing is justified given the company's current size, market share, and growth potential.

Use of IPO Proceeds

AJC Jewel Manufacturers intends to use the net proceeds from the IPO in the following manner:

1. ₹262.55 lakh will go towards capital expenditure for purchase of new equipment

2. ₹890.00 lakh is earmarked for repayment or prepayment of existing borrowings

3. The balance will be used for general corporate purposes

This utilisation structure indicates a strategic approach to reduce financial liabilities, which could improve the balance sheet health and create space for future expansion.

Grey Market Premium (GMP)

As of June 25, 2025, the GMP for AJC Jewel Manufacturers IPO stands at ₹0, indicating no listing gain expectations. Historically, GMP trends serve as an unofficial indicator of demand and potential price movement on listing day. However, GMP is an unregulated metric, and should not be the sole basis for investment decisions.

This neutral GMP trend reflects a lack of speculative interest or aggressive investor confidence in this IPO.

Subscription Status

As of 11:00 AM on June 25, 2025, the IPO has been subscribed 0.53 times on the third day of subscription. This is below expectations, especially considering this is a ₹15.39 crore IPO, a relatively modest size for the SME segment.

Such low subscription rates signal limited retail and institutional interest, possibly because of the low GMP, moderate financials, or broader market conditions.

Anchor Investors

On June 22, 2025, the company raised ₹4.29 crores from anchor investors by allotting 4,52,400 equity shares at ₹95 per share. This forms part of the QIB quota and is a positive sign, as it reflects institutional support.

Allotment & Listing Timeline

The IPO allotment date is Friday, June 27, 2025. The shares are expected to be listed on the BSE SME platform on Tuesday, July 1, 2025.

Investors can check their allotment status online via the registrar’s website using either:

• Application Number

• PAN

• DP Client ID

Final Review: Should You Invest?

While AJC Jewel Manufacturers operates in a reliable and time-tested sector, the IPO lacks excitement for short-term investors:

• The GMP is zero, meaning no expected listing gains

• Subscription levels are relatively low, indicating limited market enthusiasm

• Though financials show growth, the valuation is slightly stretched based on annualised earnings

Therefore, for listing gains, the IPO is not recommended. Long-term investors who believe in the gold jewellery sector and prefer fundamentals over short-term gains can consider this IPO, albeit cautiously.

Conclusion

The AJC Jewel Manufacturers IPO, despite belonging to the trusted gold jewellery segment, seems muted in investor enthusiasm, with low GMP, modest subscriptions, and a valuation that demands caution. Retail investors should wait and watch the final subscription data before making a decision. As it stands, this IPO is best avoided for listing gains but may hold long-term potential with clearer future visibility.

Disclaimer: The information provided in this article is for educational and informational purposes only. It should not be construed as investment advice. Investors are encouraged to consult financial professionals before making investment decisions.

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