AJC Jewel Manufacturers Ltd has approved the acquisition of an 80% stake in its UAE-based promoter group entity, AJC Jewel Manufacturers FZC. The deal, valued at approximately Rs 9.60 crore, will be executed through a non-cash share swap involving the issuance of 5,67,492 equity shares at Rs 169.16 each. This consolidation aims to bring the UAE operation under the direct ownership of the listed company, with completion expected within six months, subject to regulatory and shareholder approvals.
AJC Jewel Manufacturers to Acquire 80% Stake in UAE Subsidiary
Transaction Value: Rs 9.60 crore; Equity Issuance: 5,67,492 shares.
Reader Takeaway: This consolidation brings offshore revenue under the parent entity, pending shareholder approval and regulatory compliance.
What just happened
The Board of AJC Jewel Manufacturers Ltd has cleared the path to acquire an 80% stake in AJC Jewel Manufacturers FZC, a Sharjah-based entity currently part of the promoter group. The transaction will be settled through a preferential issue of 5,67,492 equity shares at a price of Rs 169.16 per share, including a premium of Rs 159.16. The shares will be allotted to promoter group member Mr. Afzal Rahman Perinkadakkad.
Why this matters
This move essentially brings the UAE entity into the company's fold as a subsidiary. By consolidating operations, the management aims to streamline the organizational structure. The target entity has shown revenue growth, reporting Rs 72.46 crore for the first half of 2026, compared to Rs 127.95 crore for the full year 2025 and Rs 53.81 crore in 2024.
What changes now
Following the completion of this deal, the promoter group's shareholding in the listed company is projected to reach 59.85%. Shareholders will need to monitor the upcoming 8th Annual General Meeting scheduled for September 29, 2026, where this proposal and other matters will be deliberated.
Risks to watch
The transaction is subject to necessary regulatory approvals and the formal nod from shareholders. Investors should keep a close watch on the timeline, as the board expects completion within the next 3 to 6 months. Any delays in procedural compliance could impact the acquisition schedule.