International Gemmological Institute Lists at 22% Premium, Demonstrates Strong Market Reception on BSE & NSE

International Gemmological Institute (India) Limited, a globally recognized diamond and jewelry certification organization operating since 1999, marked a noteworthy entry into the public markets on Friday, 20th December 2024. The company, which has established itself with 31 laboratories across 10 key markets including India, USA, and Europe, commenced trading on both BSE and NSE amid significant investor enthusiasm.

International Gemmological Institute Listing Details

The company's market debut reflected strong investor confidence in its business model and growth prospects:

• Listing Time & Price: When trading commenced at market open, International Gemmological Institute shares debuted at ₹510 on NSE and ₹504 on BSE, delivering a healthy 22.3% and 21.07% premium respectively to IPO investors. This robust opening validates the market's recognition of the company's established certification capabilities and global market presence.
• Issue Price Context: The considerable premium emerged after the company had strategically priced its IPO between ₹397 and ₹417 per share, ultimately fixing the final issue price at ₹417. This pricing approach successfully balanced institutional investor accessibility with fair value for the company's growth potential.
• Price Evolution: By 10:51 AM IST, some profit booking emerged as the stock traded at ₹490.05, still maintaining a solid 17.52% premium over the issue price, demonstrating sustained investor interest despite some consolidation.

First-Day Trading Performance 

• The trading activity showed robust participation and measured investor conviction:
• Volume and Value: Within just the first few hours, 30.86 lakh shares changed hands, generating a substantial turnover of ₹155.31 crore. Notably, 53.84% of traded shares were marked for delivery, indicating a balanced mix of investment and trading interest.
• Demand Dynamics: The stock's trading pattern showed measured participation with sell orders for 4.80 lakh shares against buy orders for 1.50 lakh shares, reflecting some profit taking after the strong opening gains.
• Market Sentiment and Analysis
• Market Reaction: Strong opening followed by healthy consolidation at higher levels
• Subscription Rate: The IPO was significantly oversubscribed by 35.48 times, with QIBs leading at 48.11 times subscription, followed by NIIs at 26.09 times, retail investors at 11.77 times, and employees at 21.79 times
• Pre-listing Interest: Anchor investors demonstrated strong confidence by investing ₹1,900.35 crore before the public issue

International Gemmological Institute Growth Drivers and Challenges 

Expected drivers of future performance:

• Position as second-largest independent global certification provider
• Strong presence in growing lab-grown diamond certification
• Extensive service range across industry value chain
• Educational initiatives strengthening brand value
• High barriers to entry in certification industry

Potential challenges:

• Cyclical nature of gem and jewelry industry
• Competitive certification landscape
• Geographic concentration of operations
• Technological evolution in certification

Utilisation of IPO Proceeds

The ₹4,225 crore raised will be used for:

• Purchase consideration for IGI Belgium and Netherlands Groups
• General corporate purposes
• Note: ₹2,750 crore will go to selling shareholders as OFS proceeds

International Gemmological Institute Financial Performance

The company has shown strong growth:

• Revenue increased by 29.9% to ₹648.66 crore in CY2023 from ₹499.33 crore in CY2022
• 9M CY2024 (ended September 2024) showed robust revenue of ₹619.49 crore with PAT of ₹326.06 crore
• Exceptional financial metrics with ROE of 76.58% and ROCE of 80.96%

As International Gemmological Institute begins its journey as a listed entity, market participants will closely monitor its ability to maintain growth momentum and expand its global certification leadership. The strong listing and sustained premium suggest robust investor confidence in the company's prospects in the specialized gems and jewelry certification sector, particularly given India's 95% share in global diamond polishing activity.