Diamond Rush: IGI IPO Delivers 28% Grey Market Premium!

CONTENTS:

• IGI IPO debuts at 22% premium
• IGI IPO debuts at 22.3% premium
• IGI IPO to list today, premium expected

Diamond Rush: IGI IPO Delivers 28% Grey Market Premium!

IGI IPO debuts at 22% premium

International Gemmological Institute Shares Debut with 22% Premium on NSE

Diamond Rush: IGI IPO Delivers 28% Grey Market The shares of the International Gemmological Institute (IGI) debuted on the NSE at a 22% premium over their IPO price on December 20, reflecting strong demand with a subscription of 34 times to its ₹4,225 crore public issue.

Listed at ₹510 per share, the stock exceeded its IPO price range of ₹397-417, bringing the company’s market capitalisation to ₹22,040.14 crore. On the BSE, the stock opened at ₹504.85 per share, marking a 21% premium. The listing performance surpassed expectations in the grey market, an unofficial market for IPO trading before the listing.

The company plans to use the IPO proceeds for acquiring the IGI Belgium and Netherlands Groups from its promoter and for general corporate purposes.

IGI is a leader in diamond, jewellery, and coloured stone certification, holding a 33% share in the diamond certification market and a 65% share in the lab-grown diamond segment. Operating under the ‘IGI’ brand in India and Turkey, it offers a range of grading and classification services.

Market experts, including Narendra Solanki from Anand Rathi, view the stock as a good long-term investment given IGI’s operational efficiency and established presence in the growing diamond and jewellery certification industry. With a price-to-earnings ratio of 43.75x and a return on net worth of 76.58% at the upper price band, the company presents a strong case for steady returns.

IGI IPO debuts at 22.3% premium

International Gemmological Institute Share Price Live: Stock Debuts at 22.3% Premium on NSE

Diamond Rush: IGI IPO Delivers 28% Grey Market The International Gemmological Institute (IGI) shares debuted at ₹510 per unit on the National Stock Exchange (NSE) on December 20, reflecting a premium of 22.3% over the IPO price of ₹417 per share.

Key Highlights:

• Price Range: The IPO was priced between ₹397 and ₹417 per share.

• Market Activity:
  • After opening at ₹510, the stock initially rose to ₹511.7 (+0.33%) before declining to ₹482.35 (-5.42%).
  • The highest recorded price was ₹525, while the lowest was ₹472.10.
  • On the BSE, the stock started at ₹504.85, a 21.07% premium.

• Subscription Details:
  • Qualified Institutional Buyers (QIBs): Subscribed 45.80 times.
  • Non-Institutional Investors: Subscribed 24.84 times.
  • Retail Individual Investors (RIIs): Subscribed 11.21 times.
  • Total Subscription: 33.78 times.

Financial Overview:

Diamond Rush: IGI IPO Delivers 28% Grey Market Over the years, the financial performance of the International Gemmological Institute has shown steady growth. In CY21, the company reported standalone revenue of ₹364.69 crore, which increased to a consolidated revenue of ₹490.99 crore in CY22. By CY23, the consolidated revenue surged further to ₹638.53 crore. In the first nine months of CY24, the revenue stood at ₹569.35 crore.

Similarly, the net profit also displayed consistent growth. In CY21, the company recorded a standalone net profit of ₹171.53 crore. This grew to ₹241.76 crore in CY22 and further to ₹324.74 crore in CY23. For the first nine months of CY24, the net profit was ₹326.06 crore, indicating sustained profitability and operational efficiency.

IPO Details:

Diamond Rush: IGI IPO Delivers 28% Grey Market The ₹4,225 crore IPO consisted of a fresh issue worth ₹1,475 crore and an offer for sale valued at ₹2,750 crore by the promoter, BCP Asia II TopCo Pte Ltd, an affiliate of Blackstone.

Objectives:

• Acquisition of IGI Netherlands Group and IGI Belgium Group from the promoter.
• General corporate purposes.

Diamond Rush: IGI IPO Delivers 28% Grey Market The IGI shares, backed by a strong subscription rate and investor interest, commenced trading on both the NSE and the BSE at 10:00 AM on December 20.

IGI IPO to list today, premium expected

International Gemmological Institute IPO Listing Today: Strong Premium Expected on BSE, NSE

Diamond Rush: IGI IPO Delivers 28% Grey Market The much-anticipated IPO of the International Gemmological Institute (IGI) is set to debut on the stock exchanges today, December 20, 2024. After witnessing robust demand during its subscription period, the shares will be listed on both the BSE and NSE.

Key Details:

• IPO Price Band: ₹397 to ₹417 per share.

• Funds Raised: ₹4,225 crore, comprising a fresh issue of ₹1,475 crore and an offer for sale worth ₹2,750 crore.

• Subscription Status:
  • Qualified Institutional Buyers (QIBs): Subscribed 45.80 times.
  • Non-Institutional Investors (NIIs): Subscribed 24.83 times.
  • Retail Investors: Subscribed 11.13 times.
  • Total Subscription: 33.77 times.

Grey Market Premium (GMP):

In the grey market, IGI shares are trading at a premium of ₹115 over the issue price, indicating an estimated listing price of ₹532 per share. This represents a 28% premium over the IPO’s upper price band of ₹417.

Analysts’ Views:

Diamond Rush: IGI IPO Delivers 28% Grey Market Palak Devadiga, Research Analyst at StoxBox, highlighted the strong investor interest in IGI due to its market leadership in diamond, jewelry, and colored stone certifications. IGI commands a 33% share in the global diamond certification market and a dominant 65% share in the lab-grown diamond certification segment.

With these factors, analysts are projecting a robust debut for IGI shares and recommend holding for medium to long-term gains.

Timeline:

• IPO Opening: December 13, 2024.

• IPO Closing: December 17, 2024.

• Allotment Finalization: December 18, 2024.

• Listing Date: December 20, 2024.

Book Running Lead Managers:

Diamond Rush: IGI IPO Delivers 28% Grey Market Axis Capital, Kotak Mahindra Capital Company, Morgan Stanley India, and SBI Capital Markets managed the IPO, with Kfin Technologies serving as the registrar.

With strong demand and positive GMP trends, IGI’s stock is poised for a promising debut, offering investors an opportunity for potential returns.