Employee - International Gemmological Institute IPO

International Gemmological Institute IPO Details

International Gemmological Institute IPO Date

The International Gemmological Institute IPO will open for subscription on December 13, 2024, and the closing date for the IPO is December 17, 2024, according to the offer document filed by the company with the SEBI. After this, investors are expected to be updated about the allotment status on Wednesday, December 18, 2024.

Investors who have been allotted shares can expect them to be credited to their demat account on December 19, 2024. The shares will be listed on the NSE and the BSE on Friday, December 20, 2024.

International Gemmological Institute IPO Price Band

The IPO is a combination of fresh issue and offer for sale. The IPO price band has been set between ₹397 to ₹417 per share. Interested investors can choose a price within this band to apply for the IPO.

The IPO is a book-building issue of ₹4,225 crore, with a fresh issue of ₹1,475 crore and an offer for sale of ₹2,750 crore.

International Gemmological Institute IPO listing price will be determined on December 20, 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.

International Gemmological Institute IPO Lot Size

International Gemmological Institute IPO details have been declared. The minimum lot size for an application is 35 shares, and the investor would have to apply for a minimum of 1 lot. Meanwhile, the IPO issue size is approximately ₹4,225 crore.

International Gemmological Institute IPO Objective

International Gemmological Institute intends to utilise the net proceeds for two primary purposes: Around ₹1300 crore will be used to pay the purchase consideration for acquiring IGI Belgium Group and IGI Netherlands Group from the promoter. The remaining IPO proceeds will be used for general corporate purposes, including business expansion, operational enhancements, and other strategic initiatives to support growth and sustainability.

About International Gemmological Institute

Incorporated in February 1999, International Gemmological Institute (India) Limited (IGI) is an organisation specialising in the certification and grading of diamonds, gemstones, and jewellery. IGI offers independent grading reports based on internationally recognised standards, evaluating key characteristics such as colour, cut, clarity, and carat weight.

IGI’s services include detailed grading of diamonds and coloured stones, as well as quality evaluations of finished jewellery. It also provides educational programs in gemology and jewellery-related disciplines. As of September 2024, IGI employs over 800 professionals, including 316 gemologists.

IGI conducts its business through a network of 31 laboratories located across key markets of India (Surat, Mumbai), Antwerp, New York, Bangkok, Dubai, Hong Kong, and Shanghai and 18 gemology schools that graduate thousands of professionals annually in fields such as gemology, diamond grading, and jewellery design.

As of September 30, 2024, the company has over 7,500 customers in 10 countries, including laboratory-grown diamond growers, natural diamond and coloured stone wholesalers, jewellery manufacturers, and retailers. In terms of the number of certifications of studded jewellery in CY2023, the company had a global market share of approximately 42%. Meanwhile, IGI India served 9 out of the top 10 jewellery chains in India by revenue for FY2024. 

Between CY21 and CY23, its revenue from operations rose at a CAGR of over 20.5%, while net profit rose 23.7% during the same period. The global jewellery market, which includes studded jewellery, was worth approximately ₹26,600 billion in CY2023 and is expected to grow at a CAGR of 3% to 6% until CY2028. Meanwhile, the laboratory-grown diamonds market is expected to grow at a CAGR of 15% between CY2023 to CY2028. As the market for studded jewellery and lab-grown diamonds grows, the demand for certification is likely to rise as well, which is positive for the company. 

Now, International Gemmological Institute is launching its initial public offer (IPO). The total IPO issue size is ₹4,225 crore, comprising fresh issues and offer-for-sale shares. Its shares will be listed on the NSE and BSE.

Company Name:   International Gemmological Institute.

Company Established On: February 23, 1999

Company Type: Private Limited Company

International Gemmological Institute IPO Analysis

Strengths and Opportunities

1. IGI leads the lab-grown diamond certification industry, leveraging increasing demand to solidify dominance and capitalise on rapid market growth.
2. The company operates in a highly competitive industry characterised by significant barriers to entry, demonstrating its strong market position and competitive advantage over peers.
3. IGI provides diverse certification services across the gem and jewellery value chain, meeting the varied needs of manufacturers, retailers, and end consumers.
4. IGI’s educational programs build awareness, enhance brand recognition, and foster lasting client relationships while promoting gemology knowledge in the jewellery industry.
5. IGI has a proven track record of consistent revenue, margins, and return growth, reflecting its effective business strategy and operational efficiency.
6. IGI's experienced management, backed by the world’s largest alternative asset manager, ensures strategic direction, financial stability, and resources for future growth.
7. Competitive pricing dynamics enable IGI to enhance efficiency, shorten turnaround times, and strengthen customer loyalty by strategically adjusting its pricing model.

Risks and Threats

1. Acquiring IGI Belgium and IGI Netherlands may create operational inefficiencies, standard inconsistencies, and cultural/language barriers, potentially disrupting the company’s global operations.
2. A significant portion of the company’s operations is conducted on leased or licensed premises. Non-renewal or termination of these agreements could disrupt business continuity.
3. Most of the company’s revenue is derived from its top 15 customers. Loss or reduced business from any of these customers could significantly impact revenues and operations.
4. The company’s revenue is heavily concentrated in Gujarat and Maharashtra, regions susceptible to economic, demographic, or competitive disruptions. Such regional risks could disproportionately impact the company’s business.
5. IGI relies heavily on IT systems for operations; failures, cyberattacks, or data breaches could lead to disruptions, financial loss, and reputational harm.
6. Its operations, which involve certifying diamonds and jewellery, are susceptible to fluctuations in prices and demand. Geopolitical risks and sanctions could further disrupt supply chains.
7. Ongoing legal proceedings and regulatory enquiries, including those involving previous non-compliances, could result in penalties, reputation damage, and resource diversion, affecting the company's operations.

How to apply for the International Gemmological Institute IPO?

If you are interested to invest in International Gemmological Institute IPO, following are the steps to apply:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘International Gemmological Institute IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

You can also pre-apply for the International Gemmological Institute IPO on Upstox which usually begins a day before the IPO opens for subscription.