The jewelry industry in India is growing rapidly, and the International Gemological Institute India Limited (IGI) is playing a significant role in this expanding market. IGI has recently announced its IPO (Initial Public Offering), catching the attention of investors. In this article, we’ll dive into IGI’s business model, operations, and details about its upcoming IPO.
What is IGI India
Started in 1999, IGI (India) has made a name for itself in jewelry certification, recognition, and lab-grown diamond certification. IGI is number one in certifying natural diamonds, lab-grown diamonds, and colored stones, holding over 65% of the global market share. Besides jewelry certification, IGI also offers gemology education and operates several schools and labs in India and Turkey.
IGI’s IPO: A Big Opportunity for Investors?
IGI’s IPO is set to begin on December 17, and it’s valued at ₹4,225 crore. This includes a fresh issue of ₹1,475 crore and an offer for sale (OFS) of ₹2,750 crore. The company’s total market cap is over ₹18,000 crore. Investors can buy a stake in the company through this IPO, with a lot size of 35 shares.
IGI India IPO Details
| IPO Date | December 13, 2024 to December 17, 2024 |
| Listing Date | December 20, 2024 |
| Face Value | ₹2 per share |
| Price Band | ₹397 to ₹417 per share |
| Lot Size | 35 Shares |
| Total Issue Size | 10,13,18,944 shares (up to ₹4,225 Cr) |
| Fresh Issue | 3,53,71,702 shares(up to ₹ 1,475 Cr) |
| Offer for Sale | 6,59,47,242 shares of ₹2 (up to ₹2,750 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share Holding Pre Issue | 39,67,83,045 shares |
| Share Holding Post Issue | 43,21,54,747 shares |
IGI India IPO Timeline
International Gemological Institute(IGI) IPO opens on December 13, 2024, and closes on December 17, 2024.
| 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 |
IGI India IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 35 | ₹14,595 |
| Retail (Max) | 13 | 455 | ₹1,89,735 |
| S-HNI (Min) | 14 | 490 | ₹2,04,330 |
| S-HNI (Max) | 68 | 2,380 | ₹9,92,460 |
| B-HNI (Min) | 69 | 2,415 | ₹10,07,055 |
IGI India IPO Anchor Investors
| Bid Date | December 12, 2024 |
| Shares Offered | 4,55,71,942 |
| Anchor Portion Size (In Cr.) | 1,900.35 |
| Anchor lock-in period end date for 50% shares (30 Days) | January 17, 2025 |
| Anchor lock-in period end date for remaining shares (90 Days) | March 18, 2025 |
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IGI India's #IPO is launching on Dec. 13 with a price band of ₹397-₹417 per share. With proceeds aimed at expanding their global operations, this is a golden opportunity for those interested in the #Diamond industry!#indiaipo #expandyourbusiness #Belgium #Netherlands pic.twitter.com/YuADnsFO62
— India IPO (@india_ipo1) December 10, 2024
Key Features of IGI’s Business Model
IGI‘s business model is diverse and technical. The main work involves jewelry certification and lab-grown diamond certification. Apart from this, the company offers gemology education, making it a key player in all aspects of the jewelry industry.
IGI provides certification services not only to jewelry manufacturers, sellers, and retailers but also to consumers, offering trust and transparency. Their certification process ensures that consumers are buying genuine and high-quality diamonds or stones.
Lab-Grown Diamonds: IGI’s Major Growth Area
One of IGI’s significant growth areas is lab-grown diamonds, where the company holds a leading position globally. The demand for lab-grown diamonds is rising because they are more affordable than natural diamonds. IGI certifies these diamonds too, assuring consumers of their authenticity and high quality.
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Role of Blackstone as IGI’s Promoter
Blackstone is the promoter of IGI, owning 100% of its shares. During the IPO, Blackstone will offer ₹2,750 crore for sale (OFS) but will still retain a 76% stake in the company. This stake sale indicates Blackstone’s plans to invest more in IGI’s future and explore new growth opportunities for the company.
IGI’s Future Plans and Growth
IGI’s main focus is on the lab-grown diamonds sector, which is growing at a rate of 40-45% per year. The company believes this sector will continue to grow significantly, boosting IGI’s business. Moreover, IGI plans to enhance its certification services and expand globally through various acquisitions.
Global Expansion of IGI
IGI operates not only in India but also internationally, providing services in countries like the USA, Belgium, China, Hong Kong, Thailand, and Dubai. The company aims to strengthen its global presence and is working on strategic plans to achieve this goal.
IGI India’s Financial Performance : Revenue and Profit
About 75-76% of IGI’s revenue comes from India, as the country is a major hub for jewelry production and polishing. India’s contribution to IGI’s global revenue is significant and expected to remain so. Additionally, IGI’s financial position is strong, with consistent growth in revenue and profit.
| Period Ended | 30 Sep 2024 | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2021 |
| Assets | 775.60 | 603.20 | 409.03 | 319.69 |
| Revenue | 619.49 | 648.66 | 499.33 | 374.29 |
| Profit After Tax | 326.06 | 324.74 | 241.76 | 171.53 |
| Net Worth | 643.41 | 509.01 | 339.07 | 242.59 |
| Reserves and Surplus | 111.46 | 119.40 |
Why Investing in IGI is Important?
IGI’s IPO presents an excellent opportunity for investors, as the company is a major player in the jewelry and lab-grown diamond sectors. IGI already has a strong market base, with prospects for further growth in the coming years. The involvement of a big promoter like Blackstone and IGI’s global strategies make it a promising investment.
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Conclusion
IGI’s IPO could be a great opportunity for investors, especially those looking to invest in emerging sectors like jewelry and lab-grown diamonds. With a strong financial position, global expansion plans, and rising demand, IGI points to stable and robust growth in the coming years. If you are a smart investor recognizing potential in the jewelry and diamonds sector, IGI’s IPO could be a strong addition to your portfolio.
Disclaimer: Investing in the stock market is subject to market risks. Please do your research or consult your financial advisor before making any decisions. The information provided in this article aims to educate and inform investors and traders.