About IGI India
International Gemmological Institute (IGI) is a globally recognized authority in diamond certification and gemological expertise. The company has established itself as:
- The second-largest independent diamond certifier worldwide, commanding a 33% share of the global market.
- The leading certifier in India, holding 50% of the diamond certification market.
- A pioneer in laboratory-grown diamond certifications, dominating with a 65% global share.
- An expert in the certification of studded jewellery.
Founded in 1975, IGI operates a vast global network with:
- 31 branches across 10 countries.
- 18 gemology schools that provide advanced training and education in the industry.
Objects of the Issue
The funds raised through this IPO are intended for:
- Acquiring IGI Belgium and IGI Netherlands Groups to strengthen its global footprint.
- General corporate purposes aimed at supporting overall business growth and operational needs.
Strengths
Global Leadership
IGI is the second-largest certifier of loose diamonds and jewellery worldwide and leads in the certification of laboratory-grown diamonds.
Diverse Service Offerings
The company provides a comprehensive range of certification and valuation services for diamonds, coloured stones, and jewellery.
Educational Initiatives
With 18 gemology schools, IGI fosters strong customer relationships and enhances brand recognition by providing industry-relevant training.
Robust Financial Performance
IGI has consistently demonstrated strong growth in revenues, profit margins, and returns, reflecting its financial stability and operational efficiency.
Experienced Leadership
The organization is managed by a skilled team, with strategic support from Blackstone, a globally reputed asset management firm.
Risks
Market Concentration
The company’s heavy reliance on the Indian market could pose risks in case of market disruptions.
Regulatory and Legal Challenges
IGI is subject to potential regulatory changes and ongoing legal proceedings that could impact its operations and reputation.
Competitive Landscape
The diamond certification and gemological sectors are highly competitive, with IGI facing challenges from both global and regional players.
Summary of Financial Information:
| Period Ended | 30-Sep-24 | 31-Dec-23 | 31-Dec-22 | 31-Dec-21 |
|---|---|---|---|---|
| Assets | 775.6 | 603.2 | 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 | 119.4 |
Comparison with Listed Peers:
The company stated that no listed companies in India have a business portfolio or operational scale comparable to its own. Hence, a relative comparison is not feasible.
Key IPO Details:
- IPO Dates: 13 to 17 December, 2024
- Price Band: Rs. 397 to Rs. 417 per share
- Lot Size: 35 shares
- Issue Size: Rs. 4225 Crores (Fresh Issue: Rs. 1475 Cr.)
- Retail Quota: 10%
- Listing Date: 20th Dec, 2024
- GMP: 22%+ (for informational purposes only)
Note: For additional information & risk factors please refer to the Red Herring Prospectus
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Disclaimer: We are not SEBI registered. All the views are personal and only for educational purposes. Do your due diligence before making any trading or investing decisions. The data provided in this blog post is for illustrative purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.
