| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 397 to ₹ 417 | 35 | 13th Dec, 2024 – 17th Dec, 2024 | ₹ 4,225.00 Cr |
About International Gemmological Institute Limited IPO
International Gemmological Institute (IGI) Ltd., founded in 1975, is the world’s second-largest independent provider of certification and accreditation services based on revenue for CY23. It is a part of the IGI group and is responsible for the business operations under the IGI brand, which is exclusively in India and Turkey. IGI ranks highly among global competitors for its certifications of diamonds, studded jewelry, and colored stones, holding an international market share of approximately 33%. It is a global leader in the certification of laboratory-grown diamonds, with a 65% market share, and it also holds a 42% share of the global market for certifications of studded jewelry. The company operates a network of 31 branches across ten countries, including 18 gemology schools in six countries, where it conducts its certification services. IGI’s laboratories are equipped with advanced gemological instruments and technologies, many of which are developed in-house. As of September 30, 2024, IGI boasted the largest number of laboratories and gemology schools among its global peers. The company serves over 7,500 customers across ten countries, including laboratory-grown diamond producers, natural diamond and colored stone wholesalers, jewelry manufacturers, and retailers. To support its laboratory services, IGI offers digital solutions through online platforms, like its website and application programming interface (API), which allow customers and end-consumers to access grading reports via QR codes and track submission statuses. Additionally, IGI’s global education platform provides a variety of courses in polished and rough diamond grading, colored stone grading, jewelry design, and retail support, along with a graduate gemologist diploma. Through its IGI Schools of Gemology, the company aims to create partnerships with customers by offering employee training and serving as a recruitment platform.
Objective of the International Gemmological Institute Limited IPO
The company proposes to utilize the net proceeds towards funding the following objects:
- Payment of the purchase consideration for the acquisition of IGI Belgium Group and IGI Netherlands Group from the Promoter and
- General corporate purposes.
Rationale To International Gemmological Institute Limited IPO
Market leadership and strategic presence poised for growth
IGI is the world’s second-largest independent provider of certification and accreditation services for diamonds, studded jewelry, and colored stones, operating in a market with high entry barriers for new players. In 2023, it held a global market share of approximately 33%. IGI has an extensive international presence, operating in countries such as India, the United States, the PRC (China), Belgium, the Netherlands, the UAE, Egypt, Israel, Thailand, Hong Kong, and Turkey, enabling it to serve a diverse global customer base. Several of IGI’s laboratories hold ISO/IEC 17025:2017 accreditation, signifying their competence in testing and calibration. The company is also a member of the Responsible Jewelry Council, an international organization dedicated to fostering ethical, social, and environmental standards in the jewelry supply chain. Additionally, IGI collaborates with leading international jewelry retailers to produce co-branded certification reports for specific laboratory-grown diamonds. In 2005, IGI became the first organization globally to provide certifications for laboratory-grown diamonds through IGI USA. This pioneering initiative positioned IGI as a leader in the segment, and by 2023, the company held an approximate 65% global market share in laboratory-grown diamond certifications. IGI strategically operates in key markets for laboratory-grown diamonds, including India, the United States, and the PRC. India and the PRC account for 80% of global production, while the United States leads consumption, contributing over 80% of the market demand for laboratory-grown diamond-studded jewelry in 2023. With 20 laboratories in India, three in the United States, and two in the PRC, IGI is well-positioned to capitalize on the growing demand for laboratory-grown diamonds in these regions. Its strategic global presence, leadership in India, and extensive pan-India laboratory network gives the company a strong competitive edge at national and international levels.
Comprehensive offerings and innovations aid to maintain strong customer relationships
IGI is one of the leading players in the field, offering a full stack of comprehensive services that cover grading and classification across various stone types. Its offerings include certification, co-branded reports, grading, and accreditation services for natural diamonds, laboratory-grown diamonds, studded jewelry, and colored stones. The company also provides value-added services such as screening and detecting laboratory-grown and natural diamonds, sorting diamond parcels to identify laboratory-grown diamonds or simulants, and ancillary services like audit and assurance for accounting firms and financial institutions. These extensive service offerings are designed to serve as a one-stop solution, addressing the diverse needs of customers in a dynamic market environment. IGI has introduced in-factory certification services to enhance its value proposition, delivering on-site solutions to high-volume customer facilities in India. Its diverse customer base includes laboratory-grown diamond producers, natural diamond and colored stone wholesalers, jewelry manufacturers, and retailers. Key clients include prominent jewelry firms like Morellato, along with luxury groups and retailers. By adopting a customer-centric approach, IGI has cultivated strong client relationships and streamlined service delivery to maintain the high quality of its certification services. The company’s focus on innovation, such as including detailed information about post-growth treatments in its certifications, enables customers to determine whether a diamond is “as grown” or has undergone color-altering treatments. These initiatives have solidified IGI’s leadership in the laboratory-grown diamond certification industry.
Valuation of International Gemmological Institute Limited IPO
IGI is a highly ranked independent certification and accreditation service provider for diamonds, studded jewelry, and colored stones certifications and a top-ranked provider of laboratory-grown diamond certifications globally. It is part of the IGI group and is responsible for business operations under the “IGI” brand exclusively in India and Turkey. The global jewelry market and diamond consumption are expected to grow at a CAGR of around 6% by CY28, which is expected to drive the demand for certifications at a CAGR of 5%-10%, with laboratory-grown diamond certifications leading the volume growth. Globally, IGI holds a 33% market share for diamonds, studded jewelry, and colored stones certifications and 65% for laboratory-grown diamonds, positioning it as a market leader among its peers in the certification business. IGI offers a full range of services covering grading and classification across different stone types while providing value-added services to its customers. The company caters to a diverse customer base while building strong client relationships and maintaining the quality of its services. IGI has demonstrated substantial financial growth, with a revenue CAGR of 32.3% from CY21 to CY23. Its PAT increased significantly from Rs. 1,715 million in CY21 to Rs. 3,247 million in CY23, reflecting a CAGR of 37.6%. The company’s strategic presence and leadership in India’s laboratory network provide a competitive edge both nationally and internationally. The issue is valued at a P/E of 51.0x on the upper price band based on CY23 earnings, which is fairly valued. Therefore, we recommend a “SUBSCRIBE” rating for this issue with a medium to long-term investment perspective.
What is the International Gemmological Institute Limited IPO?
International Gemmological Institute IPO is a book built issue of Rs 4,225.00 crores. The issue is a combination of fresh issue of 3.54 crore shares aggregating to Rs 1,475.00 crores and offer for sale of 6.59 crore shares aggregating to Rs 2,750.00 crores. Login to your account now.
How to apply for the International Gemmological Institute Limited IPO through StoxBox?
To apply for the International Gemmological Institute Limited IPO through StoxBox one can apply from the website and also from the app. Click here
When will the International Gemmological Institute Limited IPO open?
International Gemmological Institute Limited IPO is opening on 13th December 2024. Apply Now
What is the lot size of the International Gemmological Institute Limited IPO?
The Lot Size of International Gemmological Institute Limited IPO is 35 equity shares. Login to your account now
When is the International Gemmological Institute Limited IPO allotment date?
The allotment Date for International Gemmological Institute Limited IPO is 18th December 2024. Login to your account now.
When is the International Gemmological Institute Limited IPO listing date?
The listing Date for International Gemmological Institute Limited IPO is 20th December 2024. Login to your account now
What is the minimum investment required for the International Gemmological Institute Limited IPO?
In the Retail segment the minimum investment required is Rs. 14,595. Login to your account now
What is the maximum investment allowed for the International Gemmological Institute Limited IPO?
In the Retail segment the maximum investment requirement is Rs. 189,735. Login to your account now
What are the risks associated with investing in the International Gemmological Institute Limited IPO?
- The company relies heavily on IT systems for its business and operations. Any failure within the system, issues with physical or electronic security protections, or interruptions in its operations due to internal or external factors, including cyber-attacks or insider threats, could have a material adverse effect on the business, financial condition, or operational results.
- The company’s ability to invest in foreign subsidiaries and joint ventures is constrained by applicable restrictions under Indian overseas investment laws and the laws of relevant international jurisdictions, which could adversely affect its business prospects and global growth strategy.
- The company proposes to use the proceeds from the issue for the proposed acquisition, for which it will be responsible for overseeing and managing the overall IGI business both within and outside India. It may face challenges in managing an internationally dispersed business and be unable to operate efficiently, which could affect the company’s business and operational results.
When will the International Gemmological Institute Limited IPO shares be credited to my Demat account?
The International Gemmological Institute Limited IPO be credited to the account on allotment date which is 19th December 2024. Login to your account now
Where can I find the International Gemmological Institute Limited IPO prospectus?
The prospectus of International Gemmological Institute Limited IPO prospectus can be find on the website of SEBI, NSE and BSE
What are the important dates related to International Gemmological Institute Limited IPO?
| IPO Open Date | Friday, December 13, 2024 |
| IPO Close Date | Tuesday, December 17, 2024 |
| Basis of Allotment | Wednesday, December 18, 2024 |
| Initiation of Refunds | Thursday, December 19, 2024 |
| Credit of Shares to Demat | Thursday, December 19, 2024 |
| Listing Date | Friday, December 20, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on December 17, 2024 |
