VMPL
Malappuram (Kerala) [India], September 5: AJC Jewel Manufacturers Ltd (BSE: 544425) said its Board of Directors has approved the acquisition of an 80 per cent stake in AJC Jewel Manufacturers (FZC), its Sharjah-based UAE arm, for Rs 9.60 crore. The transaction will be carried out entirely through a non-cash share swap, and the Sharjah entity is expected to become a subsidiary of the company on Completion.
The maximum purchase consideration of Rs 9,59,96,946.72 will be discharged through a preferential issue of up to 5,67,492 equity shares of AJC Jewel Manufacturers Ltd at an issue price of Rs 169.16 per share, subject to shareholder and regulatory approvals, the company said. The transaction is proposed on an arm's-length basis in accordance with Chapter V of the SEBI ICDR Regulations, with the issue price based on a valuation report by an independent Chartered Accountant and Registered Valuer.
AJC Jewel Manufacturers (FZC), incorporated in Sharjah on May 15, 2024, is engaged in precious metal jewellery manufacturing. It reported revenue of Rs 53.82 crore in CY2024, which rose to Rs 127.95 crore in CY2025, a growth of about 138 per cent year-on-year, and Rs 72.46 crore in January-June 2026. The company clarified it has not made any representation regarding the annualised revenue, profitability or future financial performance of the UAE entity.
The proposed preferential issue will constitute approximately 8.55 per cent of the company's post-issue equity share capital. Following the allotment, promoter and promoter-group shareholding is expected to rise from 56.33 per cent to 59.85 per cent, based on shareholding as of August 21, 2026.
Mr Afzal Rahman Perinkadakkad, the proposed allottee, is expected to hold 8.55 per cent of the post-issue equity. The acquisition is expected to be completed within three to six months, subject to regulatory and shareholder approvals.
The UAE is the world's second-largest global hub for gold trade, with about AED 683 billion (USD 186 billion) of gold traded across its markets in 2024, according to the UAE Ministry of Economy and Tourism, supported by more than 6,200 companies and 53 licensed gold refineries. Dubai accounts for close to 15 per cent of global gold trade, as per the Dubai Multi Commodities Centre. Under the India-UAE Comprehensive Economic Partnership Agreement, India has preferential access across more than 97 per cent of UAE tariff lines, covering 99 per cent of Indian exports by value, with gems and jewellery among the sectors identified as key beneficiaries.
Commenting on the development, Ashraf P, Chairman and Managing Director of AJC Jewel Manufacturers Ltd, said the acquisition marks an important step in consolidating the company's international operations.
“The proposed acquisition of an 80 per cent stake in AJC Jewel Manufacturers FZC marks an important step in consolidating our international operations and strengthening our presence in the UAE. The UAE's established position within the global gold and jewellery ecosystem and its connectivity to the wider Middle East make it strategically relevant to our international growth plans,” he said.
“Importantly, the transaction is structured entirely through a share-swap arrangement, allowing us to consolidate the UAE business without a cash outflow for the acquisition consideration. We remain focused on operational integration, disciplined execution and building a scalable and integrated jewellery manufacturing platform to support sustainable long-term growth,” he added.
AJC Jewel Manufacturers Ltd is an integrated manufacturer of 22K and 18K gold jewellery products catering to leading retail chains, corporates and independent jewellers across India and international markets. Operating from its 21,780 sq ft manufacturing facility in Malappuram, Kerala, the company specialises in precision-engineered, design-led jewellery manufacturing across traditional casting, studded jewellery, bespoke orders and CNC-machined jewellery, supported by a digital-first B2B platform featuring a library of more than 5,000 jewellery designs.
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