International Gemmological Institute hits 10% upper circuit after new acquisition; stock rises 15% since listing

International Gemmological Institute India Ltd shares saw strong investor traction today, hitting a 10% upper circuit and a life-time high at ₹580.25 apiece on the NSE on Thursday after the company announced two acquisitions for $158.2 million (approximately 1,349.22 crore).

The newly listed company informed the stock exchanges that it has completed the acquisition of 100% stakes in IGI Netherlands B.V. and International Gemmological Institute BV. Following these acquisitions, the two companies have become wholly-owned subsidiaries of International Gemological Institute India Ltd.

Both acquisitions fall within related party transactions. The rationale behind acquiring the two companies is to expand their core business in an important market.

IGI Netherlands B.V., along with its subsidiaries, provides services related to the certification and accreditation of natural diamonds, laboratory-grown diamonds, studded jewellery, and coloured stones, as well as educational programs.

International Gemological Institute (India) acquired a 100% stake in IGI Netherlands B.V. from the company’s Promoter, BCP Asia II TopCo Pte. Ltd, for an aggregate consideration of $88,440,543.

International Gemmological Institute said in a filing to the stock exchanges on December 24 that the share transfer of IGI Netherlands B.V. was completed on December 20, 2024, and the cash consideration of $88,440,543 was paid on December 23, 2024.

International Gemmological Institute BV is mainly engaged in the business of diamond screening and detection services (authenticity and quality assessment and issuance of diamond certificates and reports), diamond sorting services, laser scribing of diamonds, and courses in gemology.

International Gemological Institute (India) fully acquired the shares of International Gemological Institute BV from Promoter company - BCP Asia II TopCo Pte. Ltd for a consideration of $69,761,445.

This amount, too, was paid on December 23, 2024, and the share transfer to the International Gemological Institute (India) was completed on December 19, 2024.

Shares of International Gemmological Institute India Ltd have rallied more than 39% so far since its listing on December 20. The stock was listed at a premium of 22.3% on the NSE at ₹510 apiece compared to the IPO price of ₹417 per share. The stock has gained nearly 14% from its listing price on Friday.