International Gemmological Institute (India), established in 1975, is a leading player in the diamond, gem, and jewelry grading industry. IGI is the world’s second-largest independent certification and accreditation services provider based on revenue for CY2023, holding a global market share of approximately 33%. The company provides certifications for diamonds, studded jewelry, and colored stones and continues to expand its reach globally.

International Gemmological Institute IPO Details

The International Gemmological Institute IPO is a Book Built Issue amounting to ₹4,225.00 Crores, which consists of a Fresh Issue of 353.71 Lakh Shares worth ₹1,475.00 Crores and an Offer for Sale of 659.47 Lakh Shares totaling ₹2,750.00 Crores. The subscription period for the IPO opens on December 13, 2024, and closes on December 17, 2024. The price band is set between ₹397 and ₹417 per equity share, and the lot size is 35 shares. Retail investors are required to invest a minimum of ₹14,595, while HNIs must invest a minimum of ₹2,04,330 for 14 lots (490 shares).

At the upper end of the price band, the Market Capitalisation of the company is expected to be ₹18,020.85 Crores. The allotment is anticipated to be finalized on December 18, 2024, with shares listing on the BSE & NSE on December 20, 2024.

Grey Market Premium (GMP) and Subscription Status

As of December 13, 2024, the International Gemmological Institute IPO has been subscribed 0.17 times on its first day. The Grey Market Premium (GMP) stands at ₹85, indicating a potential 20.28% listing gain. The expected listing price is ₹502, based on the current GMP trend.

Please note that the GMP is speculative and should not be used for price discovery until the stock lists on the exchange.

Financial Performance & Valuation

The International Gemmological Institute has demonstrated solid growth, with revenues increasing from ₹3,742.88 Million in FY21 to ₹6,486.60 Million in FY23. The EBITDA also improved from ₹2,502.45 Million in FY21 to ₹4,587.99 Million in FY23. The Profit after Tax (PAT) for FY24 reached ₹3,260.60 Million, compared to ₹1,715.30 Million in FY21. The company has a pre-issue P/E ratio of 50.98x, with a post-issue P/E ratio of 58.20x. These ratios, though high, are competitive considering the company's growth trajectory. The ROCE stands at 62.19% and RoE at 56.59% for 9MFY24, reflecting strong financial efficiency.

Objectives of the International Gemmological Institute IPO

The proceeds from the Fresh Issue will be utilized for the following purposes:

1. ₹14,750.00 Million for the acquisition of IGI Belgium Group and IGI Netherlands Group from their promoter.
2. The remaining funds will be used for general corporate purposes.

Investment Recommendation

Considering the strong financial performance, potential listing gains indicated by the GMP, and the company’s dominant position in the industry, we recommend Risky Investors to apply for the International Gemmological Institute IPO for listing gains. However, due to the relatively high P/E ratio, we advise caution for long-term investors until the market absorbs the initial valuation.

The Upcoming IPOs in this week and coming weeks are NACDAC Infrastructure, Transrail Lighting, Mamata Machinery, Identical Brain Studios, Rosmerta Digital, Indo Farm, DAM Capital and Avanse Financial.

The Current active IPO is and International Gemmological, Hamps Bio, Yash Highvoltage and Inventurus Knowledge.

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.