The International Gemmological Institute (IGI) is set to launch its initial public offering (IPO) on December 13, 2024, aiming to raise approximately ₹4,225 crores. Founded in 1999, IGI is a globally recognized leader in the certification and grading of diamonds, gemstones, and jewelry, operating 31 laboratories worldwide. The IPO consists of a fresh issue of ₹1,475 crores and an offer-for-sale of ₹2,750 crores from its promoter.
₹130
₹417
₹510
Expert Opinions
Market sentiment for the International Gemmological Institute (IGI) IPO is optimistic, reflecting strong interest in the growing gem and jewelry sector. Company strengths include IGI’s established reputation as a leader in diamond certification, with a 33% global market share and a solid operational foundation supported by Blackstone’s backing.
However, risks and challenges involve potential integration issues related to the planned acquisitions of IGI Belgium and IGI Netherlands, which could affect operational efficiency. The valuation analysis suggests a market capitalization of approximately $3.5 billion, which reflects strong growth potential but also implies high expectations. From a long-term investment perspective, IGI is well-positioned to benefit from the expanding gem and jewelry sector, making it an attractive option for investors seeking exposure to a key player in this niche market.
Investor Considerations
Investors considering the International Gemmological Institute (IGI) IPO should assess several critical factors. Company performance and fundamentals are strong, with FY24 revenues of ₹619.49 crore and a net profit of ₹326.06 crore for the first half, reflecting robust operational efficiency and a solid market position. The sector outlook for diamond certification is favorable, driven by increasing demand for both natural and lab-grown diamonds as consumers seek verified quality. The IPO valuation is set between ₹397 and ₹417 per share, aiming to raise ₹4,225 crore, which appears reasonable given IGI’s established market presence.
Growth prospects are promising, particularly with plans to expand operations through acquisitions in Belgium and the Netherlands. However, risk factors include potential regulatory challenges and competition from other certification bodies. A long-term investment horizon is advisable, as IGI is well-positioned to capitalize on the growing demand for gemstone certification, making it an attractive option for investors in this niche market.
| Date | GMP | Trend |
|---|---|---|
| 19 Dec 2024 18.02 | ₹130 | Up |
| 18 Dec 2024 11.56 | ₹90 | Down |
| 17 Dec 2024 12.10 | ₹110 | --- |
| 16 Dec 2024 17.54 | ₹110 | --- |
| 15 Dec 2024 13.22 | ₹110 | --- |
| 14 Dec 2024 17.13 | ₹110 | Up |
| 13 Dec 2024 11.25 | ₹75 | Down |
| 12 Dec 2024 13.09 | ₹100 | --- |
| 11 Dec 2024 10.53 | ₹100 | Down |
| 10 Dec 2024 11.26 | ₹135 | Up |
| 09 Dec 2024 13.03 | ₹120 | --- |
FAQs
The Grey Market Premium showed good accuracy in predicting International Gemmological Institute’s listing performance. While the GMP of ₹130 predicted a premium of 31.17% over the issue price, the stock delivered a gain of 22.30%. With a relatively small prediction error of 6.76%, the GMP correctly predicted both the positive listing direction and approximate magnitude of gains, though slightly overestimated the final listing premium.
International Gemmological Institute IPO Current GMP is ₹130.
International Gemmological Institute IPO Expected Returns is 31.18%.
International Gemmological Institute IPO estimated listing price is ₹547.