International Gemmological Institute (India) Ltd. (IGI India) is set to launch its Initial Public Offering (IPO) on December 13, 2024. This article provides a comprehensive overview of the IPO, including key dates, financial details, and other essential information for potential investors.

Company Overview

Established in 1999, IGI India is a leading independent certification and accreditation services provider for diamonds, studded jewelry, and colored stones. As part of the global IGI group, the company operates exclusively in India and Turkey, offering services such as diamond grading, gemstone evaluation, jewelry assessments, and gemology education. IGI India holds a significant market share in the diamond certification industry, particularly in the rapidly growing laboratory-grown diamond sector.

IPO Timeline

• Issue Opening Date: December 13, 2024
• Issue Closing Date: December 17, 2024
• Basis of Allotment Date: December 18, 2024
• Initiation of Refunds: December 19, 2024
• Credit of Shares to Demat Accounts: December 19, 2024
• Listing Date: December 20, 2024

Price Band and Lot Size

• Price Band: ₹397 to ₹417 per share
• Face Value: ₹2 per share
• Minimum Lot Size: 35 shares
• Minimum Investment: ₹14,595 per application

Issue Size and Structure

The total issue size is ₹4,225 crore, comprising:

• Fresh Issue: 3.54 crore shares aggregating up to ₹1,475 crore
• Offer for Sale (OFS): 6.59 crore shares aggregating up to ₹2,750 crore by the promoter, BCP Asia II TopCo Pte. Ltd.

Financials

As of September 30, 2024, IGI India’s financial performance is as follows:

• Total Assets: ₹775.60 crore
• Revenue: ₹619.49 crore
• Profit After Tax: ₹326.06 crore
• Net Worth: ₹643.41 crore

Strengths

• Market Leadership: IGI India is the largest independent certification provider in India, with a 50% market share in diamond and jewelry certification.
• Global Presence: Part of a global network with operations in key markets, including India, Belgium, the USA, and China.
• Diverse Services: Offers a comprehensive range of certification and educational services in the gem and jewelry industry.
• Experienced Management: Led by a team of professionals with extensive experience in the gemological sector.

Risks

• Market Dependence: High reliance on the Indian market for revenue.
• Regulatory Challenges: Subject to regulatory and legal proceedings that may impact operations.
• Competition: Faces competition from both global and regional players in the certification industry.

IPO Anchor Investors Details

The company has raised ₹1,900.35 crore from anchor investors by allocating 4,55,71,942 shares at ₹417 per share. The anchor investors include a mix of domestic and international institutional investors.

IPO Promoter Holding

IPO Grey Market Premium (GMP)

As of December 13, 2024, the Grey Market Premium for IGI India’s IPO is approximately ₹96, indicating a potential listing price of around ₹513 per share, which is a 23.02% premium over the upper price band.

Final Thoughts

IGI India’s IPO presents an opportunity to invest in a leading player in the gemological certification industry with strong financials and market presence. However, potential investors should consider the associated risks, including market dependence and competition. It is advisable to consult with financial advisors and review the company’s prospectus before making investment decisions.