AJC Jewel Makes Modest Debut on BSE SME, Lists 4% Above IPO Price

AJC Jewel IPO Listing

The gold jewelry manufacturing specialist, AJC Jewel Manufacturers Limited, made a modest debut on the BSE SME platform on July 1, 2025. After closing its IPO bidding between June 23 - June 26, 2025, the company commenced trading with a marginal 4.2% premium to its issue price, delivering moderate returns to investors despite concerns over recent declining trends and competitive market dynamics. This book-building IPO raised ₹15.39 crore with a subscription of 2.82 times, reflecting measured investor interest in the jewelry manufacturing sector as the company seeks to enhance production capabilities and reduce debt burden through strategic capital deployment and equipment modernisation.

AJC Jewel Listing Details

AJC Jewel Manufacturers Limited launched its IPO at ₹95 per share with minimum investment of 2,400 shares costing ₹2,28,000. The IPO received moderate response with subscription of 2.82 times - QIB segment at 3.57 times, retail at 2.86 times, and NII at modest 1.79 times, demonstrating mixed investor sentiment across categories. The share price listed at ₹99 on BSE SME, delivering a decent 4.2% premium from the issue price of ₹95, reflecting cautious optimism about the Kerala-based jewelry manufacturer.

Listing Price: The AJC Jewel share price opened at ₹99 on BSE SME on July 1, 2025, representing a premium of 4.2% from the issue price of ₹95, delivering modest gains for investors despite operational challenges.

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First-Day Trading Performance Outlook

AJC Jewel delivered modest debut performance, listing above issue price despite recent declining financial trends, reflecting measured investor confidence in the jewelry manufacturing sector. The company, incorporated in 2018, specialises in crafting bracelets, bangles, rings, earrings, necklaces, and anklets for men, women, and children, operating a 21,780.76 sq. ft. manufacturing facility in Malappuram equipped with advanced machinery including 3D printers and casting equipment, employing 67 personnel.

Growth Drivers and Challenges

Growth Drivers:

• Comprehensive Product Range: Wide variety of plain gold, studded gold, named gold, and rose gold jewelry in 22K and 18K categories for diverse customer segments
• Advanced Manufacturing Setup: Modern 21,780.76 sq. ft. facility equipped with 3D printers, casting machines, and polishing equipment enabling efficient production capabilities
• Established Distribution Network: Long-standing relationships with reputed jewelry dealers, showrooms, corporates, and small shops ensuring consistent sales channels
• Experienced Management: Skilled workforce with contemporary designing capabilities supported by experienced promoter and management team with proven execution track record

Utilisation of IPO Proceeds

• Equipment Purchase: ₹2.63 crore for funding capital expenditure requirements for purchase of new equipment to enhance manufacturing capabilities
• Debt Repayment: ₹8.90 crore for repayment or prepayment of borrowings to improve capital structure and reduce financial leverage
• General Corporate Purposes: Remaining funds for general corporate purposes and operational requirements

Financial Performance of AJC Jewel

• Revenue: ₹175.53 crore for 9M FY25, showing decline from ₹246.84 crore in FY24, indicating recent performance challenges in competitive market
• Net Profit: ₹1.85 crore in 9M FY25, representing decline from ₹3.32 crore in FY24, reflecting margin pressure and operational challenges
• Financial Metrics: Strong ROE of 34.64%, moderate ROCE of 17.47%, concerning debt-to-equity of 1.87, low PAT margin of 1.35%, and EBITDA margin of 2.19%, indicating tight operating margins

AJC Jewel's modest listing performance with a 4.2% premium reflects measured investor confidence in the jewelry manufacturing sector despite recent declining trends and high debt levels. Whilst the company demonstrates potential through its advanced manufacturing setup and established distribution network, challenges including performance decline in 9M FY25, high leverage, and competitive market dynamics suggest cautious investor sentiment towards the Kerala-based jewelry manufacturer in the fragmented gold jewelry industry.