International Gemological Institute IPO 2024

The International Gemmological Institute (India) Limited (IGI), a global leader in diamond certification, is gearing up for its much-anticipated Initial Public Offering (IPO). Supported by Blackstone, a renowned private equity firm, this IPO is not just about raising funds, it is also a strategic move to solidify IGI’s dominance in the global diamond certification industry.

Here’s a comprehensive guide to International Gemological Institute IPO, including issue details, company background, financial objectives, and potential risks.

About International Gemmological Institute (IGI)

The International Gemmological Institute, founded in 1975, is one of the most trusted names in diamond and gemstone certification around the world. IGI offers extensive services to a broad clientele of jewelers, ensuring accuracy and transparency. It specializes in the following:

• Natural and Cultured Diamonds: verification of origin and quality of natural and cultured diamonds.
• Coloured Gemstones: Classifying different types of precious and semi-precious gems accurately.
• Studded Jewellery: Providing grading for intricate pieces embedded with diamonds and gemstones. With its reputation for reliability and a strong global presence, IGI remains at the forefront of promoting confidence in the jewellery market.

Global Market Presence:

• 33% market share in the diamond certification industry (2023).
• Extensive network of laboratories in India, Belgium and the Netherlands.
• Known for accuracy and transparency in the processes for certification.

International Gemological Institute IPO Details at a Glance

International Gemological Institute IPO Date 2024

The key dates for the International Gemological Institute IPO are as follows:

• Bidding Opening Date: December 13, 2024
• Bidding Closing Date: December 17, 2024
• Basis of Allotment Date: December 18, 2024
• Initiation of Refunds (in case of less or no allotment): December 19, 2024
• Shares Credited to Your Demat Account: December 19, 2024
• IPO Listing Date: December 20, 2024
• Listing on Exchange: NSE and BSE

Objectives of the IPO

The International Gemological Institute IPO intends to collect ₹4,225 crores in two components:

1. Fresh Issue (₹1,475 crore):

• This money would be spent upon
• Acquisition of IGI Belgium and IGI Netherlands in order to enhance global reach
• Investment in upgrading the technology to ensure higher precision and efficiency in certification.
• Upgrade in infrastructures in order to serve the increased demand.

2. Offer for Sale (₹2,750 crore):

• Equity stake dilution of BCP Asia II TopCo Pte Ltd., which is an affiliate of Blackstone.
• It improves liquidity in the market while Blackstone retains partial ownership, signalling its confidence in IGI’s growth.

Key Highlights of International Gemological Institute IPO

• Industry Leadership: IGI has been a global leader in diamond certification with a strong market presence and credibility.
• Increasing Demand for Certified Diamonds: Because of increased consumer awareness, consumers are demanding more and more certified jewellery. IGI is well-placed to capitalize on this trend.
• Blackstone’s Investment: Blackstone’s involvement adds more legitimacy to the IPO, and it also represents the growth prospects of IGI.
• Global Expansion Strategy: The company IGI will acquire strategic global assets and invest in state-of-the-art technology to gain a major market share.

Why International Gemological Institute IPO is creating a buzz:

1. Industry Leadership

IGI is considered the leader of diamond certification which provides quality and reliability standards. Its global network and credibility are above those of all the other jewellers and diamond sellers of the world.

2. Increasing demand for Certified Diamonds

Consumer awareness is growing, and buyers will hence demand the authenticity of diamonds and jewellery. The proven strength and strong market position IGI has would allow it to capture opportunities created by increased demand, thereby solidifying its leadership position in the industry.

3. Blackstone Supports

Having a giant private equity promoter such as Blackstone gives much credibility to an IPO. It can be said that Blackstone’s involvement reflects the potential for sustained growth and profitability of the company.

4. Good Financials

Though the company has yet to declare detailed financial information, reports of the industry say that IGI has witnessed steady growth in revenue because of its expanding global footprint and the increasing demand for certified diamonds.

Financial Review

While the detailed finances are still not out, IGI suggests that:

• Steady growth: There has been steady revenue growth on account of increasing international exposure demand for certified diamonds has gone up, even lab-grown diamonds, those being marketed as eco-friendly
• Risks to Watch: IPO of IGI offers a thrilling opportunity while investing, however, one would be prudent to watch out against some risks.
• Economic sensitivity: the diamond and jeweller business is very dependent on economic conditions. the slowdown may hit its revenues
• Challenges due to regulations: Operating in various countries will expose IGI to complicated legal systems that are likely to increase compliance costs.
• Competition: Despite being a market giant, IGI is likely to face intense competition from other international certification agencies. It has to sustain its position with constant innovation and investment.

International Gemological Institute IPO: Financial and Operating Performance

International Gemological Institute key financials and operating performance for different periods are as follows:

International Gemological Institute: Key Performance

International Gemological Institute key performance are as follows:

How to Apply for International Gemological Institute IPO?

Investors can then apply to take part in International Gemological Institute IPO through its brokerage platforms or trading services, like SMC Global Securities. A user-friendly portal for all IPO applications from SMC Global securities, one can have a seamless process with them; here is how:

• Open a demat account with SMC Global Securities if you don’t have one already.
• Login into the IPO section and select International Gemmological Institute IPO.
• Now, enter the number of shares you would like to apply for and complete the payment process.

The Future of IGI in the Diamond Industry

The diamond industry is slowly evolving. With the growing importance of sustainability and transparency, IGI is more than prepared to take this forward.

• IGI plays a crucial role in the certification of lab-grown diamonds, which are more eco-friendly and sustainable alternatives to natural diamonds. This meets the rising demand for ethical jewellery.
• Use of Advanced Technology: IGI invests in the most advanced technologies to make the processes of certification more efficient and accurate, which helps sustain a competitive advantage in the global market.
• Aligning to Consumer Preferences: IGI, by being transparent and credible, aligns with the needs of the modern consumer who cares about ethical sourcing and sustainable practices, making him trust its certifications better.
• Supporting Industry Evolution: With traceability and sustainable sourcing, IGI makes the diamond industry adapt to the changing nature of demands in the market by being greener.
• Taking up these trends, IGI strengthens its market presence while creating the future of the diamond certification industry by making way for a more sustainable and transparent jewellery market.

Analyst Opinions on International Gemological Institute IPO

Market analysts are optimistic about International Gemological Institute IPO for numerous reasons:

• Strong Market Position: It enjoys the strong position of the second largest in the market and holds a pretty big scope for growth.
• Growth Strategy: IGI shall enhance the market share through the acquisition of strategic moves and technological development.
• Potential Risks: Analysts warn that economic volatility, geopolitical uncertainties, and regulatory challenges could impact IGI’s performance. Pricing of the IPO should also be reasonable to ensure investor returns.

Conclusion

The International Gemmological Institute (India) Limited IPO is an excellent opportunity to invest in a growing diamond certification industry, wherein IGI, under Blackstone’s backing, ambitious growth plans, and with a good market position, is looking quite promising.

This investment will make its process smoother through sites like SMC Global, but as with any form of investment, careful study and alignment with your goals will be necessary.

FAQs

1. Where would the International Gemological Institute IPO shares be listed?

The International Gemological Institute IPO shares would be listed on NSE and BSE

2. What is the maximum lot size for International Gemological Institute IPO?

There are 13 lots (455 shares) for International Gemological Institute IPO.

3. What is International Gemological Institute IPO for?

It is for the business expansion, upgrading of technologies and general corporate purposes.

4. Can retail investors participate in the International Gemological Institute IPO?

Yes. Subject to the terms and conditions of the prospectus, retail investors can apply for the International Gemological Institute IPO.

Author: All Content is verified by SMC Global Securities.