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International Gemmological Institute IPO: Allotment Finalised, Listing Tomorrow; GMP how to check al
Team Finance Saathi
19/Dec/2024
What's covered under the Article:
- International Gemmological Institute (India) IPO offers ₹4,225 crores with high grey market premium and strong subscription demand.
- The IPO's share price band is ₹397-₹417, with the potential for good listing gains based on financial performance.
- Investors can apply in various categories, with detailed instructions for checking IPO allotment status.
International Gemmological Institute (India), a leader in diamond, gem, and jewelry grading, education, and appraisals since 1975, has launched an IPO with a total issue size of ₹4,225 crores. This includes a fresh issue of ₹1,475 crores (353.71 lakh shares) and an offer for sale of ₹2,750 crores (659.47 lakh shares). The subscription period for the International Gemmological Institute (India) IPO runs from December 13 to December 17, 2024, and the allotment is expected to be finalized by December 18, 2024, with a tentative listing date of December 20, 2024.
The share price band for the IPO is set between ₹397 and ₹417 per equity share. If the issue price is ₹417, the market capitalization of the company at the IPO price will be ₹18,020.85 crores. Retail investors are required to invest a minimum of ₹14,595 (for 35 shares), while High-Net-Worth Individuals (HNIs) need to apply for a minimum of 14 lots (490 shares), amounting to ₹2,04,330.
International Gemmological Institute (India) is the world's second-largest independent certification provider, offering diamond, studded jewelry, and colored stones certification. With a global market share of approximately 33% based on the number of certifications in CY2023, the company is a dominant player in the global grading industry.
Financials and Growth Potential:
The company has shown consistent revenue growth, with revenues from operations for FY2024 (ending September 30, 2024) at ₹6,194.92 million, compared to ₹3,742.88 million in FY2021. The EBITDA for FY2024 stood at ₹4,523.17 million, and the Profit After Tax (PAT) for the same period was ₹3,260.60 million. These strong financials, alongside a high Return on Capital Employed (ROCE) of 62.19% and a Return on Equity (RoE) of 56.59%, make the IPO attractive for investors looking for stable and high-growth companies.
Grey Market Premium (GMP) and Subscription:
The Grey Market Premium (GMP) for this IPO has been consistently high, with an expected GMP of ₹85, indicating a 20.28% premium on the issue price of ₹417. This is a strong indicator of potential listing gains, suggesting the IPO could list significantly above the issue price. The subscription has been strong, with 33.78 times subscription as of the final day, indicating high demand for shares from investors.
Anchor Investors and Pre-IPO Investments:
International Gemmological Institute (India) has successfully raised ₹1,900.35 crores from anchor investors at the IPO price of ₹417 per share. The company allocated 4,55,71,942 equity shares to anchor investors, which adds confidence to the IPO’s success.
IPO Allotment Process:
To check the allotment status, investors can visit the registrar’s website and follow these steps:
- Navigate to the IPO allotment page.
- Select International Gemmological Institute (India) IPO from the dropdown.
- Enter your application number, PAN, or DP Client ID.
- Submit the details to check the allotment status.
Utilization of IPO Proceeds:
The proceeds from the fresh issue will be used for:
- ₹14,750.00 million for the acquisition of IGI Belgium Group and IGI Netherlands Group from the promoters.
- General corporate purposes.
Valuation and Investment Recommendation:
The IPO has an EPS of ₹8.22 pre-issue and ₹7.17 post-issue, with a P/E ratio of 50.98x (pre-issue) and 58.20x (post-issue). These valuation metrics suggest that the IPO is reasonably priced, offering a decent growth opportunity in the long term.
Given the company's strong financial performance, market leadership in diamond grading, and promising grey market premium, the International Gemmological Institute (India) IPO is a good choice for risk-tolerant investors looking for listing gains.
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