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International Gemmological Institute (India) IPO Makes Strong Debut with 22.3% Premium
Team Finance Saathi
20/Dec/2024
What's covered under the Article:
- IGI IPO lists at ₹510 on NSE and ₹504.85 on BSE, with a strong premium.
- The IPO raised ₹4,225 crore, with a fresh issue and offer for sale.
- IGI is the world's second-largest certification provider for diamonds and jewelry.
The International Gemmological Institute (India) IPO made a strong debut on December 20, 2024, with its shares listing at ₹510 on NSE, a premium of 22.3% over the issue price of ₹417. On the BSE, shares listed at ₹504.85, reflecting a 21.07% premium. This marks a positive start for the company's public market journey.
International Gemmological Institute (India) has been a cornerstone of the diamond, gem, and jewelry grading industry since its establishment in 1975. It is currently the world’s second-largest independent certification and accreditation services provider for diamonds, jewelry, and colored stones, holding a 33% global market share in the industry based on the number of certifications conducted in CY2023.
The IPO raised a substantial ₹4,225 crore, comprising a fresh issue of ₹1,475 crore and an offer for sale of ₹2,750 crore. The subscription period ran from December 13 to 17, 2024, with 33.78 times oversubscription, indicating strong investor demand. The price band for the IPO was set between ₹397 and ₹417 per equity share, with a market capitalization at the IPO price of ₹18,020.85 crore.
The company’s financial performance has shown consistent growth, with revenues of ₹6,194.92 million for the 2024 fiscal year, a substantial increase from ₹3,742.88 million in 2021. The profit after tax (PAT) for FY2024 stands at ₹3,260.60 million, reflecting strong profitability. The company has maintained a healthy Return on Capital Employed (ROCE) of 62.19% and a Return on Equity (RoE) of 56.59% for the 9-month FY24 period.
This debut is also supported by significant anchor investor participation, with ₹1,900.35 crore raised through anchor investors at ₹417 per share. IGI's management team, led by Tehmasp Nariman Printer, has over two decades of experience, further strengthening investor confidence.