AJC Jewel Manufacturers Limited IPO: Mainboard or SME? Full Details

The AJC Jewel Manufacturers Limited IPO gives investors a chance to invest in a growing segment in India, the jewelry manufacturing and retail sector. The company is involved in the precious metals and jewelry industry and is specifically involved in the manufacturing, designing and distribution of gold and silver jewelry. AJC Jewel Limited is located in Kerala, a state known for jewelry making, and its consumption and general love for gold, which puts AJC Jewel in a place of opportunity to maximize the growing marketplace in India for jewelry, and increasing demand for branded products.

The IPO is a fresh issue for ₹14.59 crores, issued at ₹95 per share is being listed on the BSE SME platform. A JC Jewel Limited has a Grey Market Premium (GMP) of ₹9 (9.47%), which makes the expected listing price at ₹104 per share. Again we see positive indications for the response in purchasing the IPO for AJC Jewel Limited.

IPO Dates for AJC Jewel Manufacturers

The AJC Jewel Manufacturers IPO is scheduled to open on June 23, 2025, and close on June 26, 2025. The allocation date is expected to be announced by June 27, 2025, with listing planned for July 1, 2025.

IPO Details Summary

About AJC Jewel Manufacturers IPO

AJC Jewel Manufacturers Limited is a jewelry manufacturing company that designs, produces, and wholesales gold and silver jewelry. The company operates from Kerala, India, which accounts for a large amount of gold jewelry consumed in the country, has a strong tradition in jewelry manufacturing. 

AJC Jewel is located in Malappuram, Kerala and has been created in the area where there is a pool of both skilled artisans and an ecosystem within which jewelry is manufactured. The company sells its jewelry to the domestic market, and expects to serve international markets in the future. AJC manufactures an extensive amount of jewelry from traditional Indian designs to modern designs. 

The company has announced its intention to go public via the BSE SME platform, which is intended for small and medium enterprises to raise funds for growth and development. As it stands, the company is offering up to ₹14.59 crores worth of fresh issue to provide the company with funds it will use to develop its jewelry business, work capital needs, and grow the business in the competitive jewelry industry.

The jewelry industry in India is growing fast due to increasing disposable income, changing lifestyles, increasing brand consciousness, and the cultural significance of gold to Indian society. AJC Jewel is well-placed to position itself to take advantage of this growth with its manufacturing strengths and market presence in Kerala's jewelry hub. 

The company's operations include the entire value chain from the design and manufacture to retail/distribution, so AJC Jewel provides complete jewelry solutions that meet the different preferences and needs of their customers and the market.

Financial Performance of AJC Jewel Manufacturers

The company has demonstrated consistent growth with some recent challenges:

Amount in ₹ Crores

Performance Analysis

AJC Jewel Manufacturers exhibited excellent long-term growth; and of late, has exhibited some moderation. The total assets base grew from ₹16.4 crores in Mar-22 to ₹36.7 crores, up 124%, in Mar-24 before declining to ₹34.3 crores in Dec-24. Revenue grew, nearly doubled at ₹246.8 crores in Mar-24 but decreased to ₹175.5 crores in Dec-24 probably due to seasonality or other market transitions. The PAT rose from ₹1.3 crores to ₹3.3 crores over two years then eased to ₹1.9 crores and with slight margins of 1–1.5%, however, this is consistent with the high turnover, low margin case of the jewelry sector. The net worth improved from ₹5.1 crores to ₹13.9 crores with reserves increased from compounded reserves. The borrowings peaked at ₹26.2 crores in Mar-23 and this moderated to ₹18.4 crores reflecting higher inventory as part of working capital.

IPO Share Reservation

The IPO share allocation will follow standard SEBI guidelines:

Sector Comparison

*Latest reported period (Dec-24)

Know Before Investing

Risks

Volatility in Gold Price : The jewelry industry is vulnerable to fluctuations in gold prices, impacting inventory assessment, working capital, and overall gross profit margins. 

Working Capital Intensive : Jewelry manufacturing is working capital intensive because it requires significant working capital to maintain the gold and silver inventory, with many product lines demanding high working capital needs to maintain borrowing and the associated interest cost.

Seasonal Demand : The jewelry industry suffers demand fluctuations during festivals, wedding seasons, and other occasions, limiting revenue visibility.

Regulatory Compliance : The jewelry industry faces substantial regulations, including hallmarking regulations, GST requirements, and precious metals regulations.

Competition Intensity : The jewelry industry has high competition from organized and unorganized players, including large retail chains/brands and local jewelers, creating pricing pressures and market share pressure.

Credit Risk : Credit to retailers and distributors in the jewelry trade creates collection risk and potential bad-debt exposure. 

Raw Material Dependency : Heavy dependence on gold and silver prices and availability has immediate effects on manufacturing costs and profitability. 

Economic Sensitivity : Discretionary purchase sensitivity, relates to the overall economic cycle and outcome on consumer disposable income, as well as overall consumer confidence.

Strengths

Strategic Location : Company is situated in Kerala, one of the largest jewelry consumption markets, as well as being a hub for a vast pool of craftsmanship as well as supply chain ecosystems.

Consistent Revenue Growth : last years, Company's performance has included a strong annual revenue run-rate of Rs 127.4 crore in FY21- FY22 to Rs 246.8 crores in FY22- FY23 based on the returns which imply strong market acceptance alongside business scale-up ramp-up

Improving profitability : Profits After tax grew from Rs 10.14 crore as the estimate as of Mar-22 to around Rs 25 crore as of Mar-24 a growth of around 154%. Company is showing continuous improvements in operational efficiencies and managed its margins better

Strengthening balance sheet positions : Increase in Net worth from Rs 5.1 crores to Rs 13.9 crores shows a strong base for further operational scaling and build-up of retained earnings.

Growing Market Opportunity : Indicated considerable growth opportunity as a continual increase of all around wealth in India is ushering in more personal and family demand for statement ornamental gold and other decorative items for occasion events; and the stubborn expansion of brand acceptance and trends for customer validation for jewelry purchases.

Manufacturing Capabilities : The in-house manufacturing component adds a higher degree of control over producing quality, productivity and input costs while developing tailoring solutions, than can not be achievable with a trading only model or co-manufactured arrangement.

Growth of Reserves : Reflective of positive operating activities the significant growth of reserves/surplus from, Rs 2.2 crores to Rs 9.5 crores is evidence of a nd opportunity for growth initiatives and strategies; especially in light of the Company management intentions of both retaining and managing costs.

Diversified Product Line : Company's considerable ability (more than one Jewelry prototype and designs) to provide its customers with broad variances of jewelry produced rective demand in either traditional designs and or blended designs is an added dimension for added operational flexibility to respond to adjustments with the demand.

How to Apply for AJC Jewel Manufacturers IPO?

Step-by-step guide (when IPO opens):

--> Log in to your broker app (Zerodha, Angel One, Groww, etc.)

--> Navigate to the IPO section and select AJC Jewel Manufacturers IPO

--> Click "Apply"

--> Enter:

• Lot size (minimum as per announcement)

• Bid price (within price band or select Cut-Off)

• Your UPI ID

--> Submit the application

--> Approve the UPI mandate in your UPI app (PhonePe, GPay, etc.)

⏰ Important: Mandate must be approved before 5 PM on the same day or before IPO closes.

How to Check AJC Jewel IPO Allotment Status?

You can check allotment status through BSE/NSE and the registrar portal once the IPO opens.

Check On BSE/NSE

• Visit the BSE or NSE official website.

• Navigate to the IPO Allotment Section

• Select AJC Jewel Manufacturers IPO

• Enter PAN number or application number

• Submit details to get allotment status

Check On the Registrar Portal

• Visit Bigshare Services Pvt Ltd's website

• Select IPO allotment status

• Choose AJC Jewel Manufacturers IPO

• Enter PAN or application number

• Submit to check status

Company Address

Name : AJC Jewel Manufacturers Limited
Address : 38/227-Z, Inkel Greens Edu City, Karathode-Konampara Road, Panakkad Village, Pattarkadavu, Malappuram, Ernad, Malappuram, Kerala, 676519
Phone : +91 9567916106
Email : investors@ajcjewel.com
Website : https://ajcjewel.com/ab

IPO Registrar

Name : Bigshare Services Pvt Ltd
Address : 1st Floor, Bharat Tin Works Building, Opp. Vasant Oasis, Makwana Road, Marol, Andheri(E), Mumbai - 400 059
Phone : +912262638200
Email : ipo@bigshareonline.com
Website : https://ipo.bigshareonline.com/IPO\_Status.html

Lead Manager

Name : Smart Horizon Capital Advisors Private Limited

Conclusion

The opportunity to invest in a growing jewelry manufacturing sector through AJC Jewel Manufacturers Limited IPO is an exciting opportunity for investors. In addition to their visibly strong long-term growth outlined in this article, including revenue (increasing almost twox in a two-year span) and consistent yearly increases in net worth and net reserves; the strategic advantage of AJC's location in Kerala's jewelry hub provides competitive advantages including a skilled workforce and access to market demand. 

AJC's branding, manufacturing capabilities, vision, and growing market presence will also benefit from India's continually expanding jewelry market. However, investors should carefully consider the challenges inherent in the jewelry industry, including but not limited to volatile gold prices, seasonal demand, and working capital intensity.

This semi-soft moderation in revenue and profit contraction in Dec-24 can be evaluated like any business cycle in the jewelry sector. Management's ability to continue growing while working capital and debt levels are actively managed will be key to the sustainable success of AJC moving forward.Potential investors should reserve judgments until announcements are made public relating to IPO pricing, number of issues, and AJC's business plan. Depending on the final valuation and growth strategy, it could be a coincidental or issue worthy of interest.

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Disclaimer : This analysis is for educational purposes only and should not be considered as financial advice. Please consult with your financial advisor before making any investment decisions. Jewelry manufacturing investments carry market risks and are subject to commodity price volatility and regulatory changes.

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