International Gemmological Institute (India) is a prominent player in the gem and jewelry certification industry, with over 40 years of experience in grading diamonds, gemstones, and jewelry. As the second largest independent certification provider globally in 2023, IGI has a 33% market share in diamond, jewelry, and colored stone certifications, making it a leader in the industry. This IPO marks a significant milestone for the company, which has long been a trusted name in the grading and education sectors for diamonds and gemstones.

The IPO, which is a Book Built Issue, aims to raise a total of ₹4,225.00 Crores, with a fresh issue of ₹1,475.00 Crores and an Offer for Sale amounting to ₹2,750.00 Crores. The share price band for the International Gemmological Institute (India) IPO has been set between ₹397 to ₹417 per equity share, with a market capitalization of ₹18,020.85 Crores at the upper price band. The lot size is 35 shares, and retail investors need to invest a minimum of ₹14,595, while HNIs need to invest a minimum of ₹2,04,330 for 14 lots (490 shares).

Grey Market Premium (GMP) and Subscription Status

As of December 13, 2024, the Grey Market Premium (GMP) of the IGI IPO stands at ₹85, implying a potential listing gain of 20.28%. The expected listing price based on the GMP is ₹502, which is a 20.28% higher than the upper price band of ₹417. This indicates strong investor interest and a favorable market response.

The IPO subscription has been robust, with the IPO subscribed 33.78 times on its final day of the subscription period (December 17, 2024). This high level of subscription demonstrates strong demand for shares and reflects the positive sentiment surrounding the diamond grading industry. The allotment status will be finalized by December 18, 2024, and the listing date is scheduled for December 20, 2024.

Anchor Investors and Financial Performance

The Anchor Investors in the IGI IPO have contributed ₹1,900.35 Crores, securing 4,55,71,942 equity shares at the upper price band of ₹417 per share. This strong anchor investor participation further highlights investor confidence in the company's growth prospects.

IGI has demonstrated impressive financial performance, with revenues steadily increasing over the past few years. The FY2024 revenues reached ₹6,194.92 Million, up from ₹3,742.88 Million in FY2021, and the Profit After Tax (PAT) for FY2024 stands at ₹3,260.60 Million, reflecting strong profitability and growth.

The company has a pre-issue EPS of ₹8.22, translating into a P/E ratio of 50.98x, which increases to 58.20x post-issue, based on the expected post-issue EPS of ₹7.17. These metrics suggest that the IPO is reasonably priced, especially considering IGI's market leadership and profitability.

Investment Recommendation

Considering the strong GMP, robust financials, and leadership position in the diamond grading sector, we recommend risky investors apply to the IGI IPO. The company’s strong brand and growth trajectory position it well for long-term success in the booming gem and jewelry industry.

The Upcoming IPOs in this week and coming weeks are Transrail Lighting, Mamata Machinery, DAM Capital  Sanathan Textiles, Concord Enviro, Newmalayan Steel, Ventive Hospitality, Senores Pharmaceuticals, Carraro India, Solar91 Cleantech, Unimech Aerospace, Rosmerta Digital, Indo Farm, and Avanse FinancialThe Current active IPO is Identical Brain Studios and NACDAC Infrastructure.
For more details on upcoming IPOs, you can visit our page at Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and stay updated with the latest news on IPO updates on Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News - Finance Saathi. Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates. Start your Stock Market Journey and Apply in IPO by opening a Free Demat Account in Choice Broking FinX.