International Gemological Institute IPO: Price, Date, & GMP

International Gemological Institute IPO (IGI IPO) - Complete Overview 

International Gemological Institute IPO (IGI IPO) a Mainboard IPO is a book-built issue of Rs.4,225 crore (101,318,944 Shares) by International Gemological Institute (India) Limited which was founded in February 1999. It's a global entity that certifies and grades diamonds, gemstones, and jewelry.

Independent grading reports on diamonds are compiled and submitted with certification that inherently analyses and evaluates the characteristics of stones by using universally acknowledged guidelines, starting with an outline that provides specific information regarding the color, cut, clarity, and carat weight of the stone.

IGI also conducts gemstone and jewelry trade education programs and degree plans and has a research department.

There are 31 laboratories covering finished jewelry, natural diamonds, lab-grown diamonds, and gemstones in the entire globe. There are also 18 gemology schools, where thousands of students are graduated every year.

Some services provided by the company include:

These reports include the 4Cs for natural and lab-grown diamonds, amongst others, having a brief note on fluorescence and symmetry.

Verification of the quality and authenticity of rubies, sapphires, and emeralds accordingly, with detailed grading reports provided.

Assesses the quality of the diamond and colored stones, craft refinement, and finished jewelry evaluation.

Offering a series of educational courses and programs in gemology, diamond grading, jewelry designing, and related subjects.

By 30 September 2024, the company had a total of 20 laboratories and 9 schools operating under the umbrella of the Pre-Acquisition Group, which employed a workforce of 843 workers in total, out of which 316 were gemologists and other professionals in the sectors of research, education, and certification processes.

By 30 September 2024, IGI operated 31 branch offices and laboratories in 10 countries, among which major markets like Surat and Mumbai in India, Antwerp, New York, Bangkok, Dubai, Hong Kong, and Shanghai represented countless orders. 

This new IPO is to be launched on 13 December 2024, and the initial public offering of this upcoming IPO will end on 17 December 2024.

Detailed Video

International Gemological Institute IPO Details

The Rs.4225 crore IGI IPO comprises a combination of fresh issue of 3.54 Cr Shares (Rs.1475 Cr) and an offer for sale (OFS) of 6.59 Cr Shares (Rs.2750 Cr). The IPO listing date is on December 20, 2024. International Gemological Institute IPO price is Rs.397 to Rs.417. 

If you want to apply for the IPO, Click Here  to open a Demat Account.

Company Financial (Restated)

(Amount in Crore)

 

Cash Flows

The cash flows for various activities are shown below:

(Amount in millions)

 

Service-wise Revenue Bifurcation

(Amount in millions)

Revenue of Certification Business 

(Amount in millions)

The Objective of the Issue

• Payment to the promoter for the purchase consideration of IGI Belgium Group and IGI Netherlands Group.

• General Corporate Purpose.
  
  

Peers of International Gemological Institute Limited

There are no such listed companies in India that are engaged in similar or the same business nature of comparable size.

Evaluation

The International Gemological Institute IPO price band is between Rs.397 to Rs.417 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2023 with an EPS of Rs.8.18 from the last year, the resulting P/E ratio is 51x. 

Considering the weighted EPS of Rs.6.84 for the last three years, the P/E ratio is 61x.

Comparative Analysis with Listed Peers

No listed peers, hence no comparison is possible.

IPO's Strengths 

• The second-largest and independently working organization in the world concentrates on diamonds and jewelry and heralds into working in a high-barrier industry.

• Provider of certification services for the rapidly growing laboratory-grown diamond industry.

• A large number of customers in the value chain have found a wide range of certification and accreditation services.

• Education initiatives to raise awareness and build partnerships with customers and its brand for the company. 

IPO’s Weaknesses 

• The Promoter proposes to utilize the Net Proceeds of the Fresh Issue for the Proposed Acquisitions, after which he will manage and supervise the business of IGI worldwide.

• Management and administration of an internationally dispersed business may pose difficulties for us, and we may not achieve operational efficiencies following the Proposed Acquisitions; all of which might harm our business and the results of operations.

• Unaudited Pro Forma Condensed Combined Financial Information presented in this Red Herring Prospectus is done at the request of the Company and is meant solely for illustration purposes. Our actual results may materially differ from the outcome of the Proposed Acquisitions presented in the Unaudited Pro Forma Condensed Combined Financial Information.

• The valuation report formed for the Proposed Acquisitions is based on several assumptions and may not give an accurate indication of the real value of the IGI Belgium Group and IGI Netherlands Group.

• A large portion of the Net proceeds is supposed to be paid to the Company's Promoter. 

 

International Gemological Institute IPO GMP

International Gemological Institute IPO GMP today is Rs.130 as of 09 December 2024. With a price of Rs.417, the estimated IGI India Limited IPO listing price is Rs.547 while writing this information. 

IGI India IPO Timetable (Tentative)

The International Gemological Institute IPO date is from 13 December to 17 December, with IPO allotment on 18 December, and refund initiation on 19 December. The IPO listing date is on 20 December 2024.

IGI India Limited IPO Other Details 

IGI India IPO with a face value of Rs.2 per Share offers a total issue size of 10,13,18,944 Shares (Rs.4225 Cr) and it will be listed at BSE and NSE.

International Gemological Institute IPO Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (35 Shares) amounting to Rs.14,595 and 13 Lots (455 Shares) amounting to Rs.1,89,735 respectively, while for HNI investors, the minimum Lot is 14 (490 Shares) amounting to Rs.2,04,330.

IPO Reservation

 

IPO Lead Managers

• Axis Capital Limited.

• Kotak Mahindra Capital Company Limited.

• Morgan Stanley India Company Pvt Ltd.

• SBI Capital Markets Limited.
  
  

Dividend Policy

(Values in Rs.)

 

Conclusion

The International Gemological Institute IPO allows the investor to invest in a global leader in diamond and jewelry certification services, robust financials, and a great growth outlook. Badly, the valuation is on the higher side, with major proceeds going toward acquisitions and payments to the promoter. Risks that come into play include the post-acquisition operational hurdles that will need to be managed before a potential investor hopes to profit from it.

If the markets hold, then with a GMP of 130 the listing can fetch some premium making it suited for short-term gains.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

DISCLAIMER: This is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions. 

Click Here to stay updated with the Upcoming IPOs.

Want to start Your Journey in stock market trading and investment? Join our Stock Market Class to become a beginner to expert trader! We cover everything from the basics of trading to advanced strategies for picking stocks. Plus, we're offering a special discount for women and students. Don't miss out - enroll now and kickstart your path to success in the stock market!
Open a world of Stock Market by Opening a Demat Account with your favorite Broking firm & Get a trading Strategy worth Rs.15,000!

Click here to open a Free Demat Account.

Thank You for reading this blog.
Hope you loved the IPO analysis.
Please Comment Below with your feedback because Your feedback motivates us to deliver more such content.

Follow MUKUL AGRAWAL for the latest IPO news and reviews. You can connect with us on social media platforms like Twitter, Facebook, and Instagram. You can also subscribe to our YouTube Channel for the latest videos of the stock.