International Gemmological Institute IPO

The International Gemological Institute (IGI) is a globally renowned independent gem certification and appraisal institute. It plays a pivotal role in ensuring the authenticity and quality of diamonds and gemstones, instilling trust among buyers and safeguarding jewellers’ reputations. IGI certifies natural and lab-grown diamonds, studded jewelry, and colored stones and offers educational programs through its School of Gemology.

IGI IPO Details

• IPO Dates: Opens on December 13, 2024, and closes on December 17, 2024.
• Price Band: ₹397–₹417 per share.
• Lot Size: 35 shares.
• IPO Size: ₹4,225 Crores, with ₹2,750 Crores from Offer-for-Sale and ₹1,475 Crores from the Fresh Issue.
• Fresh issue proceeds will primarily fund the acquisition of IGI Belgium and IGI Netherlands (₹1,100 Crores) and corporate purposes

Market Insights

The global jewelry market, valued at ₹26,600 billion, is projected to grow at 5–6% CAGR from 2023 to 2028, driven by daily wear jewelry trends, lab-grown diamonds, and branded jewelry. IGI dominates the certification industry with a 33% global market share and 50% in India, particularly excelling in lab-grown diamond certifications (65% market share).

Strengths

• Second-largest independent certification provider globally.
• Full-stack services, including certification, grading, and education.
• Robust financial performance with a 2-year revenue CAGR of 31.65%.

Weaknesses

• Risks of operational inefficiency post-acquisitions.
• Cyclical gem industry dependency.
• Customer concentration risk (46.46% revenue from top 15 clients).

With Blackstone backing and no listed peers, IGI’s IPO offers a unique investment opportunity. However, investors should assess risks before committing.

DISCLAIMER: This article is not meant to be giving financial advice. Please seek a registered financial advisor for any investments.