The International Gemmological Institute (IGI) is preparing for its Initial Public Offering (IPO), which will remain open from 13 to 17 December 2024. The IPO aims to raise approximately INR 4,225 crore, with a price band set between INR 397 to 417 per share. Investors can participate with a minimum investment of INR 14,595 for a lot size of 35 shares, with the listing slated for 20 December 2024, on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
International Gemmological Institute – Overview
Founded in 1975 in Belgium, IGI is a global leader in certification and accreditation services for diamonds, studded jewellery, and coloured stones. The company holds a commanding 33% global market share in certification services and dominates the laboratory-grown diamond sector with a 65% market share. With 31 labs across 10 countries, including India, the USA, Belgium, and China, IGI has solidified its reputation as a trusted authority in gem certification.
IGI Analysts Recommendations: A Strong Investment Opportunity
According to Mr. Karan Kamdar, Senior Analyst at DRChoksey Finserv, IGI’s high-margin operations and exceptional growth trajectory make it an attractive investment. IGI experienced a 75% revenue increase from CY21 to CY23, driven by its asset-light business model, which ensures profitability while minimizing capital expenditure. Kamdar highlighted that IGI’s operational efficiency positions it as a strong contender for investors seeking solid returns.
Ms. Anubhuti Mishra, an analyst at Swastika Investmart, also emphasizes the unique appeal of the IGI IPO. She notes that the International Gemmological Institute IPO offers an intriguing opportunity as a globally renowned organization specializing in the certification and grading of diamonds, gemstones, and jewellery. “With a leadership position in the international market and consistent growth in financial performance, including strong results for the nine months ending September 2024, the company is well-positioned for both immediate and long-term growth. The absence of direct listed peers underscores its unique standing in the market,” opined Mishra.
These analyst views reflect what is the norm regarding brokerage house recommendations for the upcoming IPO. Here is a bigger list of broker recommendations:
- BP Wealth – Subscribe
- Capital Market – Subscribe
- Elite Wealth – Subscribe
- GEPL Capital – Subscribe
- Jainam Broking – Subscribe for long term
- Mehta Equities – Subscribe for long term
- SMC Global – 2.5/5
- Swastika Investmart – Subscribe
- Ventura Securities – Subscribe
Market Position and Growth Potential: IGI’s Long-Term Prospects
Mishra also refers to the International Gemmological Institute IPO’s current Grey Market Premium (GMP), the stock is expected to list with a gain of approximately 30%, making it attractive for investors seeking short-term gains. Additionally, the company’s strategic positioning and strong fundamentals offer significant potential for long-term growth. However, investors should remain mindful of any market-specific risks and broader economic factors that could impact the luxury goods and certification industry.
Conclusion: Strong Potential for Both Immediate Gains and Long-Term Growth
The International Gemmological Institute listing is set to attract significant attention from investors. With its high-margin operations, impressive revenue growth, and dominant market position, IGI offers a unique investment opportunity. Both analysts mentioned above agree that IGI’s IPO presents an appealing prospect for those looking for both short-term gains and long-term growth.
As the market anticipates the IGI Analysts’ Recommendations, investors are encouraged to weigh both the potential for immediate profits from the IPO listing and the company’s long-term prospects. IGI’s established reputation, strategic global positioning, and strong financial performance make it an attractive choice for those seeking growth in the gem certification sector.
As of November 2024, the Indian primary market has seen a total of 77 Mainboard IPOs. Out of these, 60 Mainboard listings have achieved positive performance. However, there were challenges as well, with 17 Mainboard IPOs experiencing negative returns. Notably, the average listing day return stands at an impressive 27.59% for Mainboard IPOs, underscoring the potential for significant gains in this dynamic market. For more information related to IPO GMP, SEBI IPO Approval, Live Subscription, stay tuned to IPO Central.
