The International Gemmological Institute (India) Ltd IPO is the most prominent IPO of the gem and jewelry certification industry. This IPO provides an exciting investment opportunity for the retail investors as the company expands its operations and consolidates its leadership in the gemological services industry.
Introduction of the IPO
The International Gemmological Institute (India) Ltd through the IPO is looking to raise ₹4,225 crore. It includes a fresh issue of ₹1,475 crore and an offer for sale (OFS) worth ₹2,750 crore, thus reflecting its growth strategy and helping existing shareholder monetize their holdings.
Purpose of the IPO – International Gemmological Institute (India) Ltd
Proceeds from the IPO will primarily fund:
- Expansion of existing laboratories and operations.
- Upgrading technological infrastructure to enhance service quality.
- Meeting general corporate expenses.
Company Overview
International Gemmological Institute (India) Ltd, founded in 1999, is a global leader in the certification of diamonds, gemstones, and jewelry. With 31 laboratories and 18 gemology schools worldwide, including key markets like Mumbai, Surat, Antwerp, and Dubai, IGI has come to be synonymous with precision and trust in the jewelry industry.
History of the Company
From the global gemological center of Antwerp, the company expanded into India to tap the country’s burgeoning diamond industry. IGI has rolled out state-of-the-art certification technologies and training programs in the course of these years to establish itself as an industry leader.
Ownership and Directors
Promoters: Pre-IPO, the promoters have a majority stake in the company, which will dilute after the issue.
Directors: The board comprises of highly experienced professionals with knowledge of gemology and business management.
Promoter Holding:
Pre-IPO: 100%
Post-IPO: 76.55%
Details of the IPO
- IPO Name: International Gemmological Institute (India) Ltd
- Issue Type: Fresh Issue and Offer for Sale (OFS)
- IPO Open Date: December 13, 2024
- IPO Close Date: December 17, 2024
- Price Band: ₹397 to ₹417 per share
- Lot Size: 35 shares
- Issue Size: ₹4,225 crore
- Listing Date: December 20, 2024
- Listing Exchanges: BSE and NSE
- Category Quotas:
- Retail Individual Investors (RII): 10%
- Qualified Institutional Buyers (QIB) and other: 75%
- Non-Institutional Investors (NII): 15%
Financial Overview
- Revenue (2023-24): ₹649 crore
- EBITDA (2023-24): ₹342 crore
- Profit After Tax (PAT): ₹325 crore
- Key Ratios:
- P/E: 50.95x (Pre-IPO)
- ROE: 56.59%
- ROCE: 62.19%
- Debt-to-Equity Ratio: 0.2
Sector & Industry Overview
The gem certification industry is witnessing strong growth as the demand for certified diamonds and gems is growing globally. The fact that India is a major diamond-cutting hub increases IGI’s growth prospects.
Growth Prospects
With increasing demand for lab-grown diamonds and the company’s plans to increase its laboratory network, IGI is in a good position to witness steady growth.
Risk Factors
- The business depends on discretionary spending in the luxury market.
- The certification business is highly competitive.
- The company has to adhere to regulatory compliance in multiple jurisdictions.
Allotment and Listing Details
- Allotment Date: December 18, 2024
- Listing Date: December 20, 2024
- Registrar: KFin Technologies Limited
How to Check Allotment Status?
To check the allotment status go the webiste of KFin Technologies portal and enter your PAN or application number.
Conclusion
The International Gemmological Institute (India) Ltd IPO offers a unique opportunity to invest in a market leader in gemological certification. Its global presence, advanced infrastructure, and strong financials make it an appealing prospect for investors seeking growth and stability.
For more details, consult credible sources or your financial advisor.
Happy IPO Investing!
FAQs
1. What is the International Gemmological Institute (India) Ltd IPO?
From the IPO IGI (India) Ltd plans to raise ₹4,225 crore through a combination of a fresh issue and an offer for sale (OFS).
2. What is the purpose of this IPO?
The funds raised will be used for:
- Expanding and upgrading laboratory operations globally.
- Upgrading technology to improve service quality.
- General corporate expenses.
3. What is the IPO price band?
The price band for the IPO is set at ₹397 to ₹417 per share.
4. What is the lot size for the IPO?
Investors need to purchase a minimum of 35 shares per lot.
5. What are the IPO dates?
- Opening Date: December 13, 2024
- Closing Date: December 17, 2024
- Allotment Date: December 18, 2024
- Listing Date: December 20, 2024
6. What is the total issue size?
The IPO aims to raise ₹4,225 crore, which includes:
- Fresh Issue: ₹1,475 crore
- Offer for Sale (OFS): ₹2,750 crore
7. On which exchanges will the shares be listed?
The shares will be listed on BSE and NSE.
8. How will the shareholding change post-IPO?
- Pre-IPO Promoter Holding: 100%
- Post-IPO Promoter Holding: 76.55%
9. What are the financial highlights of the company?
- Revenue (2023-24): ₹649 crore
- Profit After Tax (PAT): ₹325 crore
- ROE: 56.59%
- ROCE: 62.19%
- Debt-to-Equity Ratio: 0.2
10. What is the current Grey Market Premium (GMP)?
The GMP is ₹90, indicating strong demand for the IPO in the unofficial market.
11. What are the risks associated with this IPO?
- The business depends on discretionary spending in the luxury market.
- The certification business is highly competitive.
- The company has to adhere to regulatory compliance in multiple jurisdictions.
12. What is the company’s position in the gemological industry?
IGI (India) Ltd is a global leader in diamond, gemstone, and jewelry certification, with 31 labs and 18 gemology schools worldwide.
13. How can I check the IPO allotment status?
Investors can check their allotment status via the KFin Technologies Limited portal using their PAN or application number.
14. What is the sector outlook for IGI (India) Ltd?
The gem certification industry is growing due to the rising global demand for certified diamonds and gems, and IGI is well-positioned to benefit from this trend.
15. Should retail investors invest in this IPO?
The IPO offers a unique opportunity to invest in a niche market leader with strong financials and growth potential. However, before investing retail investors should consider their financial goals and consult their financial advisor.
16. What makes IGI unique compared to competitors?
IGI’s global reach, advanced certification technologies, and leadership in gemology education set it apart in the industry.
17. Who is the registrar for the IPO?
The registrar for the IPO is KFin Technologies Limited.
Realated information & Articles
Current & Upcoming IPOs in India
Don’t Miss – Tax Implications of Investing in IPOs in India