AJC Jewel Manufacturers Ltd. IPO: Key Details

AJC Jewel Manufacturers

• AJC Jewel Manufacturers is coming out with an initial public offering (IPO) of 16,20,000 equity shares in a price band Rs 90-95 per equity share.
• The issue will open on June 23, 2025 and will close on June 26, 2025.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 9.00 times of its face value on the lower side and 9.50 times on the higher side.
• Book running lead manager to the issue is Smart Horizon Capital Advisors.
• Compliance Officer for the issue is Reshmi N K.

Profile of the company

AJC Jewel Manufacturers is primarily engaged in the business of manufacturing and designing the wide range of wholesale Gold Jewelleries which includes plain gold, studded and named jewelleries available in 22 Karat and 18 Karat. As at December 31, 2024, plain gold, studded gold and named Jewelleries contributed 33.45%, 42.12% and 6.34 %, respectively of its revenue from operations. The company manufacturers the finished gold jewelleries from the raw gold i.e. bullions and required consumables and sell it to dealers, showrooms, corporates and small jewellery shops in the wholesale quantities. It provides an extensive range of jewellery designs of plain gold, rose gold, the jewelleries studded with Cubic Zircon and / or coloured stones and named jewelleries customized and designed in detail, keeping in mind the customer’s unique preferences and requirements. The company manufactures jewelleries for three categories of Individuals men, women and children.

The company caters to a large number of local dealers, showrooms and small-scale jewellery shops who buy its products in bulk quantities. It caters to a variety of customers across mid-market and value market segments and its products are designed by its in-house team of designers who are CAD designers and also certain freelance designers, allowing it to manage a large and diverse portfolio of designs. Its product range includes Anklet, Bangle, Bracelet, Earrings, Necklace, Nose Pin, Pendant, Ring and customized named jewelleries (like Name Bracelet, Name Pendant, Name Ring) based on the dealer’s orders and end customers’ preferences and demands.

The company has an equipped gold jewellery manufacturing facility situated at Inkel Greens Edu City, Malappuram with each processing machines and equipment having capability to design as well as manufacture gold jewelleries under one roof. The manufacturing facility has an area admeasuring 21,780.76 Sq. Ft. and is taken on lease by the company. Its manufacturing facility is equipped with the necessary equipment, such as 3D printer, Wax Injector, Casting Machine, and polishing Equipment and other handling equipment, to support a seamless manufacturing process.

Proceed is being used for:

• Funding of capital expenditure requirements for purchase of new Equipment by the company
• Repayment/prepayment of all or certain of its borrowings availed of by the company
• General corporate purposes

Industry Overview

The Indian Gems and Jewellery industry is one of the fastest growing segments in the Indian economy. The industry contributes 7% to India's Gross Domestic Product (GDP). The industry employs more than five million skilled and semi-skilled workforce in the country. The sector contributes about 10-12% of India’s total merchandise exports, accounting for the third largest commodity share. The Government of India, along with all the stakeholders of gems and jewellery sector, is well committed to aggressively promoting exports, identifying challenges and addressing them with necessary interventions, assisting exporters, especially SME units, and exploring new markets while consolidating existing ones. With strong growth prospects, the government of India has also declared the gems & jewellery sector as a focus area for export promotion.

India's overall gems and jewellery exports declined by 9.82% to Rs 241089.5 crore in FY25 as compared to Rs 267350.83 crore in the previous financial year. The decline in gems and jewellery exports was mainly due to the continuous dip in demand in China as well as the US, India's key export markets, due to the ongoing geopolitical tensions. However, in March 2025, the exports improved slightly, witnessing a growth of 1.02% at Rs 22340.89 crore as compared to Rs 21228.71 crore in the same month of the previous year.  Further, overall gross imports of Gems & Jewellery also decreased 10.09% to Rs 165819.35 crore in FY25 as compared to Rs 184425.97 crore in FY24. In March 2025, imports of Gems & Jewellery stood at Rs 16783.49 crore as compared to Rs 17349.51 crore in March 2024. 

Indian jewellery sector is likely to witness growth in the coming years driven by rising disposable incomes among the middle class, growing demand for certified and branded jewellery, and increased adoption of digital retail platforms. The increasing penetration of e-commerce, omnichannel retail strategies, and digital innovations such as virtual try-ons, AI-driven recommendations, and blockchain authentication will further driving market transformation. The lower customs duty on jewellery, platinum findings will boost jewellery demand in near time. However, industry may face several challenges, including volatile gold prices, high labour costs, fragmented inventory systems, and the slow adoption of advanced retail technologies. Besides, US government's reciprocal tariffs on imports will hurt India's exports to the US in coming years.  

Pros and strengths

Wide product range, design and Innovation in product range: The company operates on the idea of creating innovative and unique designs in its product offerings. Its offerings include Rings, Pendants, Chains, Necklace, Anklets, Bracelets, Bangles, Earrings available in 22 Karat and 18 Karat. The company has been able to create a unique and diversified range of designs and product range to cater to all age and genre of customers indirectly, keeping in mind the taste and preference of different regions. Its workforce and artisans have allowed it to create a diversified and a wide range of varied and unique designs of different weightage to cater to large variety of customers. It creates an inventory of varied types of jewellery design products for its wholesale segment, which enables and ensures repeat dealers. It ensures that it is updated with the latest market trends.

Long-standing relationship with reputed jewellery dealers: The company is engaged in B2B sales of jewellery. Since its incorporation, it has been engaged with prominent jewellery dealers, which are established brands in the domestic jewellery retailing market. Further, the company has such association of various years with these jewellery retailers. Its business growth in the past is mainly attributed to such established relationships and it intends to continue to leverage such associations for future growth as well.

Organised manufacturing setup under one roof: The company has its own manufacturing set up consisting of bench working artisans, technology for laser cutting, laser engraving and casting units. It has in-house 3D printing machine to convert CAD image in CAM. It is equipped with each stage processing equipment and machines due to which its manufacturing process underscores its commitment to efficiency, quality, and innovation. Its custom build order management software facilitates swift workflows for its valuable corporate clients, empowering them to efficiently track the progress of their orders.

Risks and concerns

Maximum revenue comes from limited customers: The company is dependent on a limited number of Customers, which exposes it to a risk of Customer concentration. The company has garnered 64.60%, 46.30% and 46.98% of its total revenue from top 10 customers in FY24, FY23 and FY22 respectively. There is no guarantee that it will retain the business of its existing key customers or maintain the current level of business with each of these customers. Any decline in its quality standards, growing competition and any change in the demand, may adversely affect its ability to retain them. It cannot assure that it shall generate the same quantum of business, or any business at all, and the loss of business from one or more of them may adversely affect its revenues and results of operations.

Geographical concentration of business: The company generates its major portion of sales from its operations in certain geographical regions especially, Kerala. The company has garnered 63.74%, 99.02% and 99.89% of its total revenue from Kerala in FY24, FY23 and FY22 respectively. Such geographical concentration of its business in this region heightens its exposure to adverse developments related to competition, as well as economic and demographic changes in this region which may adversely affect its business prospects, financial conditions and results of operations.

Existing manufacturing facility and registered office are concentrated in a single region: The company’s manufacturing facility and registered office is located at Inkel Edu City in the district of Malappuram in the state of Kerala which exposes it to a risk of concentration. Any materially adverse social, political or economic development, natural calamities, civil disruptions, or changes in the policies of the state government or local governments in this region could adversely affect manufacturing operations, and require a modification of its business strategy, or require it to incur significant capital expenditure or suspend its operations. Any such adverse development affecting continuing operations at its manufacturing facility could result in significant loss due to an inability to meet customer contracts and production schedules, which could materially affect its business reputation within the industry.

Outlook

AJC Jewel Manufacturers Limited is engaged in the business of jewelry manufacturing specializing in crafting bracelets, bangles, rings, earrings, necklaces, and anklets for men, women, and children. The company has wide product range, design and innovation in the product range. On the concern side, the company is dependent on certain customers for a significant portion of its revenues. Also, the company in the usual course of Business does not have any long term contracts with its Customers and it relies on purchase orders for delivery of its products and the customers may cancel or modify their orders, change quantities, delay or change their sourcing strategy. Loss of one or more of its top customers or a reduction in their demand for its products or reduction in revenue derived from them may adversely affect its business, results of operations and financial condition.

The company is coming out with a maiden IPO of 16,20,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 90-95 per equity share. The aggregate size of the offer is around Rs 14.58 crore to Rs 15.39 crore based on lower and upper price band respectively.  On performance front, revenue from operations in FY 2023-24 was Rs 24,588.99 lakh as compared to Rs 19,418.14 lakh in FY 2022-23 indicating a growth by 26.63%. Moreover, profit after tax in FY 2023-24 was Rs 331.94 lakh as compared to RS 203.89 lakh in FY 2022-23.

Continuously investing in its manufacturing operations is a strategic move for the company, by installing and accommodating new automated equipment, it will be able to achieve better operational efficiency. This automated equipment such as the 3D printer, Wax Injector, Casting Machine, Investment Mixer, Screw Making Setup, CNC strip Cutting Machine and CNC Bangle/Ring Cutting Machine will enhance its manufacturing processes and increase its production capacity. With these upgrades and expansions, it anticipates being able to expand its operations, which will provide it with operational efficiency and support the growth of its business. It is committed to investing in capacity expansions and modernizing its equipment to stay competitive in the market.