AJC Jewel Manufacturers Limited, engaged in the wholesale manufacturing and designing of gold jewellery, closed its ₹15.39 crore BSE SME IPO on June 26, 2025, with a subscription of 2.91 times. Despite no grey market premium (GMP) and a modest market sentiment, the IPO managed to attract fair investor interest, especially from institutional participants.

Company Overview: A Trusted Name in Wholesale Gold Jewellery

AJC Jewel Manufacturers is known for its wide product range in plain gold, studded and named jewellery in both 22K and 18K variants. The company converts raw gold (bullions) into finished jewellery, catering primarily to:

• Dealers

• Jewellery showrooms

• Corporates

• Small jewellery retailers

Its business model is wholesale-focused, helping it benefit from high-volume orders with established relationships across distribution chains.

IPO Structure and Investment Details

The IPO was a Book Built Issue worth ₹15.39 crore, comprising entirely a fresh issue of 16.20 lakh equity shares.

• Price Band: ₹90 to ₹95 per share

• IPO Lot Size: 1,200 shares per lot

• Minimum Retail Investment: ₹1,14,000

• HNI Minimum Investment: 2 lots (₹2,28,000)

• Tentative Listing Date: July 01, 2025, on BSE SME

• Registrar: Bigshare Services Pvt Ltd

• Lead Manager: Smart Horizon Capital Advisors Pvt Ltd

• Market Maker: Rikhav Securities Ltd

At the upper price band of ₹95, the market capitalisation of the company stands at ₹57.64 crore.

Subscription Breakdown

On the final day of bidding (June 26, 2025), the IPO was subscribed 2.91 times. Here's the likely breakdown:

• Retail Investors: Fair response despite high ticket size

• HNIs and Institutions: Likely drove the majority of the bids

• Anchor Investors: ₹4.29 crore raised from 4,52,400 shares allotted at ₹95

The Anchor Book saw participation even in a modestly sized IPO, showing cautious yet selective institutional interest.

Grey Market Premium (GMP) Status

As of the IPO closing, the GMP was ₹0, indicating no premium in the unregulated market. While GMP is often speculative, a flat premium can reflect either:

• Low retail excitement

• Market preference for other active IPOs

• A wait-and-watch approach by traders

Note: GMP is unofficial, highly speculative, and doesn’t always reflect listing day performance.

Use of IPO Proceeds

AJC Jewel Manufacturers has earmarked the funds raised for the following:

• Working Capital Requirements

• General Corporate Purposes

This aligns with the company’s plans to strengthen its liquidity and scale operations, without heavy capital expenditure commitments like plant expansion or debt repayment.

Financial Performance Snapshot

The company has demonstrated steady revenue and profitability growth over the past few years:

Revenue from Operations:

• FY22: ₹12,739.68 lakh

• FY23: ₹19,424.78 lakh

• FY24: ₹24,684.14 lakh

• 9M FY25: ₹17,552.73 lakh

EBITDA:

• FY22: ₹214.55 lakh

• FY23: ₹400.72 lakh

• FY24: ₹634.78 lakh

• 9M FY25: ₹412.04 lakh

Profit After Tax (PAT):

• FY22: ₹126.19 lakh

• FY23: ₹203.89 lakh

• FY24: ₹331.94 lakh

• 9M FY25: ₹185.32 lakh

These numbers indicate a healthy upward trend, although the business is exposed to gold price volatility and wholesale demand cycles.

Valuation Metrics and Ratios

The IPO is fairly priced, as per peer comparisons and industry standards:

• Pre-issue EPS (FY24): ₹8.24

• Post-issue EPS (FY24): ₹5.47

• Pre-issue P/E: 11.53x

• Post-issue P/E: 17.37x

• Industry P/E Benchmark: 19x

• Annualised EPS: ₹4.07

• Annualised P/E: 23.33x

Return Ratios:

• ROCE (FY24): 17.47%

• ROE (FY24): 34.64%

• RoNW: 27.56%

These indicators suggest the company is efficient in capital utilisation and offers strong shareholder returns—a positive sign for long-term investors.

Allotment and Listing Timeline

• IPO Closed: June 26, 2025

• Allotment Date: June 27, 2025

• Listing Date (Tentative): July 01, 2025

• Exchange: BSE SME

Allotment Status Check Steps:

1. Visit Bigshare Services or BSE IPO allotment portal

2. Select “AJC Jewel Manufacturers Limited” from the dropdown

3. Enter your PAN, DP ID, or Application Number

4. Submit to view allotment status

Should Investors Consider AJC Post IPO?

The company offers a niche business model, with in-house design, manufacturing, and distribution of 22K and 18K gold jewellery. Its wholesale client base provides volume certainty, though margins remain thin due to the nature of the gold jewellery trade.

While the IPO may not offer immediate listing gains, investors looking for medium- to long-term exposure in the B2B jewellery segment may evaluate further post-listing performance and quarterly results.

Final Verdict

Given the flat GMP, moderate subscription, and fair valuation, the IPO appears fairly priced but not compelling for listing gains. However, with strong return ratios and consistent earnings, long-term investors may consider tracking the company post-listing for a better entry point.

Quick Summary

• IPO Size: ₹15.39 crore (fresh issue only)

• Issue Price: ₹90–₹95

• Final Subscription: 2.91x

• GMP: ₹0

• Allotment Date: June 27, 2025

• Listing Date: July 01, 2025

• Registrar: Bigshare Services Pvt Ltd

• Business Model: Wholesale Gold Jewellery Manufacturer

• FY24 ROE: 34.64%

• Post-issue P/E: 17.37x

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