Blackstone-Backed IGI Shares Hit 10% Lower Circuit, Down 43% from January Peak

Shares of International Gemmological Institute (IGI) hit the 10% lower circuit at ₹366.25 on March 3, down 43% from its January peak. Despite a 45% YoY rise in net profit to ₹114 crore and a 6% increase in revenue to ₹265 crore, the stock faced selling pressure. IGI, which debuted at ₹510 per share in December, has declined nearly 28% from its listing price. The company holds a strong market position in diamond certification, with a growing presence in lab-grown diamonds. Domestic institutional investors reduced their stake post-listing, while individual investors increased holdings.

Blackstone-Backed IGI Shares Hit 10% Lower Circuit, Down 43% from January Peak

Shares of the recently-listed International Gemmological Institute (IGI) plunged 10 percent to hit the lower circuit at ₹366.25 on March 3, following the release of its financial results for the quarter ended December 31, 2024.

Despite reporting a 45 percent year-on-year increase in net profit to ₹114 crore and a 6 percent rise in revenue to ₹265 crore, the stock faced continued selling pressure. The company’s EBITDA also grew by 18 percent year-on-year to ₹152 crore.

Since its debut on the NSE at ₹510 per share on December 20—a 22 percent premium over its issue price—IGI’s stock has declined nearly 28 percent from its listing price and is now down around 43 percent from its January peak of ₹642.3 per share.

In a previous press release, IGI highlighted the growing demand for Lab-Grown Diamonds (LGDs), which are increasingly popular due to their affordability and sustainability. The company emphasized that independent certification is becoming more critical for ensuring quality and authenticity, positioning IGI as a key player in this evolving market.

 

Shares of International Gemmological Institute (IGI), a jewellery certification firm, hit the 10% lower circuit at ₹366.25 on the NSE on March 3 after the company announced its financial results for the quarter and year ending December 31, 2024. IGI follows a January-to-December financial calendar.

The company’s market valuation currently stands at ₹15,827.85 crore.

In Q4 CY24, IGI’s revenue from operations grew 6% year-on-year to ₹265 crore, up from ₹249.9 crore in the same period last year. Meanwhile, profit after tax (PAT) surged 45% to ₹113.78 crore, compared to ₹78.4 crore in the previous year’s quarter.

For the full calendar year 2024, IGI reported a consolidated revenue increase of 17% to ₹1,053.1 crore, up from ₹898 crore in CY23. Its net profit for the year rose 29% to ₹427.2 crore, compared to ₹330.8 crore in the previous year.

Tehmasp Printer, IGI’s Managing Director and CEO, highlighted the company’s dominant market position, stating, “With a 33% global share in diamond certification and 65% in lab-grown diamonds, we continue expanding our presence and service offerings. The successful acquisition of IGI Belgium and IGI Netherlands further strengthens our global footprint.”

IGI shares debuted on December 20 at ₹510 per share, a 22.3% premium over the issue price of ₹417. However, the stock has since fallen 12.17% below its issue price.

The company’s ₹4,225 crore IPO, which was subscribed 33.78 times, included a fresh issue of ₹1,475 crore and an offer for sale (OFS) worth ₹2,750 crore. Backed by Blackstone, IGI is India’s largest independent provider of accreditation and certification services for natural and lab-grown diamonds, jewellery appraisal, and coloured stone grading.

 

Shares of Blackstone-backed International Gemmological Institute India (IGI) hit the 10% lower circuit at ₹366.60 on the BSE during intra-day trading on March 3, marking a new low. This decline followed the company’s financial report for Q3FY25, which showed relatively flat revenue of ₹190.29 crore, compared to ₹189.2 crore in the previous quarter (Q2FY25) and ₹184 crore in Q3FY24.

As of 10:44 AM, a total of 2.1 million shares had changed hands, with pending sell orders for 2.03 million shares on the NSE and BSE. The stock is currently trading 12% below its issue price of ₹417 and has fallen 43% from its January 1 peak of ₹642.30. IGI was listed on the stock exchange on December 20, 2024.

IGI, India’s largest independent accreditation and certification services provider, holds a 50% market share. With operations in 10 countries, including 31 laboratories and 18 Schools of Gemology, the company is well-positioned to capitalize on industry shifts.

In Q3FY25, IGI’s profit after tax (PAT) increased 3.6% quarter-on-quarter (QoQ) and 26.8% year-on-year (YoY) to ₹111.68 crore. EBITDA remained flat QoQ but rose 9.6% YoY to ₹141.89 crore, with margins at 74.6%, slightly down from 74.7% in Q2FY25 but higher than 70.3% in Q3FY24.

With its global operations now consolidated under India, IGI aims to leverage the country’s expertise in diamond manufacturing and polishing while expanding its retail presence in the USA, Europe, and China.

The company noted that the diamond and jewellery industry is undergoing a transformation driven by changing consumer preferences, technological advancements, and increasing demand for certification. The adoption of Lab-Grown Diamonds (LGDs) is accelerating due to their affordability and sustainability. Additionally, demand for certified diamonds, gemstones, and jewellery is expanding beyond traditional markets, reinforcing the need for transparency and trust. International Gemmological Institute ‘s diverse service formats, including International Gemmological Institute Labs, In-factory Labs, and Mobile Labs, provide a competitive edge in this evolving industry.

Meanwhile, following IGI‘s listing, domestic institutional investors (DIIs) reduced their stake in the company by nearly 2 percentage points, from 7.75% at the time of listing to 5.88% at the end of December 2024. In contrast, resident individual shareholding increased from 5.33% to 6.84%, according to the latest shareholding data.