AJC Jewel Manufacturers Ltd. announced its plan to acquire an 80% stake in its Sharjah-based UAE entity, AJC Jewel Manufacturers (FZC), for approximately ₹9.60 crore. This non-cash share swap transaction aims to consolidate international operations and strengthen the company’s presence in the UAE’s significant gold and jewellery ecosystem. The deal is expected to be completed within 3-6 months, making the UAE entity a subsidiary.
AJC Jewel Manufacturers Consolidates International Operations with UAE Acquisition
AJC Jewel Manufacturers Ltd. is set to significantly bolster its international footprint with the proposed acquisition of an 80% stake in its existing UAE-based subsidiary, AJC Jewel Manufacturers (FZC), located in Sharjah. The transaction, valued at approximately ₹9.60 crore, will be executed entirely through a non-cash share swap, demonstrating a strategic move to consolidate global operations without immediate cash outflow.
Deal Structure and Rationale
The acquisition involves a preferential issue of up to 5,67,492 equity shares of AJC Jewel Manufacturers at an issue price of ₹169.16 per share. This share-swap arrangement is designed to provide equity consideration to the promoter-group transferor and enable AJC to achieve majority ownership of the UAE operation. Upon completion, AJC Jewel Manufacturers (FZC) will become a subsidiary of the listed entity. This strategic move is expected to grant AJC greater ownership and control over its international business platform, fostering enhanced operational integration and a stronger base for serving regional markets.
UAE as a Strategic Hub
The UAE represents a strategically vital market for AJC, leveraging its established position as a global hub for gold and precious metals trade. With approximately AED 683 billion (US$186 billion) in gold traded across UAE markets in 2024, the country boasts a robust ecosystem of over 6,200 companies and 53 licensed gold refineries. Dubai, in particular, is a major international centre for precious metals, handling about 15% of worldwide gold trade. The Sharjah operation will serve as a platform for AJC to explore opportunities in jewellery manufacturing, regional distribution, and international customer servicing across the Middle East. The India-UAE Comprehensive Economic Partnership Agreement (CEPA) further supports this venture by providing preferential market access.
Financial Performance of UAE Entity
The UAE entity, AJC Jewel Manufacturers (FZC), reported revenues of ₹127.95 crore in CY2025 and ₹72.46 crore during January-June 2026, compared to ₹53.82 crore in CY2024. This progression highlights a strong revenue trajectory, with CY2025 revenue growing by approximately 138% year-on-year. While the company has not provided representations regarding annualized revenue or profitability, the revenue figures indicate a significant scale of existing operations.
Building an Integrated Platform
The consolidation aligns with AJC’s broader strategy to develop a scalable jewellery manufacturing platform across domestic and international markets. AJC currently manufactures 22K and 18K gold jewellery from its 21,780 sq. ft. facility in Malappuram, Kerala, utilizing capabilities in traditional casting, studded jewellery, bespoke orders, and CNC-machined jewellery. The company also operates a digital-first B2B ecosystem with over 5,000 jewellery designs. The UAE acquisition is expected to add an international operating platform, integrating Indian manufacturing and design capabilities with global customer and distribution opportunities.
Transaction Timeline
The proposed acquisition is anticipated to be completed within approximately 3-6 months, contingent upon necessary regulatory and shareholder approvals for the preferential issue.
Source: BSE
