International Gemmological Institute IPO Day 3: GMP, subscription status, review & other details. Apply or not? | Stock Market News

International Gemmological Institute IPO Day 3: The International Gemmological Institute’s initial public offering (IPO), which opened on Friday, 13 December, will close for subscription on Tuesday, 17 December. Therefore, today is the last day for investors to place bids for the International Gemmological Institute IPO.

International Gemmological looks to raise ₹4,225 crore via the initial share sale. The public offer is a mix of a fresh share sale of ₹1,475 crore and an offer for sale of up to ₹2,750 crore.

The price band for the International Gemmological IPO is set at ₹397 to ₹417 per share. Investors can apply for one lot of the IPO of 35 shares and in multiples thereafter.

International Gemmological Institute IPO Subscription

The International Gemmological Institute IPO sailed through on the final day of bidding today. The issue was subscribed 1.16 times around 10.45 am. The retail portion was booked 3.53 times and the non-institutional investor (NII) quota was subscribed 1.17 times. Meanwhile, the qualified institutional buyers (QIB) portion garnered 9% bids so far. Lastly, the employee quota was subscribed 9.42 times.
 

International Gemmological Institute IPO GMP

The grey market premium (GMP) of the International Gemmological Institute IPO stood at ₹125 per share. At the prevailing GMP, the International Gemmological Institute shares could list at ₹542, a premium of 29% over the issue price of ₹417 per share. The GMP has witnessed an increase over the last few days, suggesting increased investor interest in the company.
 

International Gemmological Institute Review

Established in 1999, the International Gemmological Institute certifies and grades diamonds, gemstones, and jewellery. The company has no listed peers in India.

The company also provides independent reports that assess the quality of stones based on international standards. These reports cover important details like the stone’s colour, cut, clarity, and weight.

It has posted strong financial performance, with revenue rising 29.94% to ₹648.66 crore for the year ending 31 December 2023, up from ₹499.33 crore in the previous year. During the same period, profit after tax (PAT) increased by 34%, from ₹324.74 crore to ₹241.76 crore.

The global jewellery 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 jewellery, and coloured stones certifications, and 65% for laboratory-grown diamonds, positioning it as a market leader among its peers in the certification business.

Against this backdrop, brokerages are bullish on the company’s IPO. Swastika Investmart recommended subscribing to the IPO for both the short term and the long term.

“The company has reported consistent growth in financial metrics, including robust results for the nine months ending September 2024. The company has a monopoly in the business as there is no listed peer for comparison. The company is also a renowned name in global merchandise. So, it is a suitable investment option for both short-term and long-term investors,” Swastika said.

Similarly, Stoxbox analyst Palak Devadiga recommended a “Subscribe” rating for the IPO given its strong position in the segment, financial growth, and fair valuations.

“IGI has demonstrated substantial financial growth, with a revenue CAGR of 32.3% from CY21 to CY23. Its PAT increased significantly from ₹1,715 million in CY21 to ₹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,” Devadiga said.

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.