International Gemmological Institute IPO Opens on December 13; Key Financials to Consider

The International Gemmological Institute (IGI) IPO, one of the upcoming IPOs in India, will open for subscription on December 13, 2024, and close on December 17, 2024.

The IPO is a book-built offering valued at ₹4,225.00 crores, comprising a fresh issue of 3.54 crore shares worth ₹1,475.00 crores and an offer for sale of 6.59 crore shares amounting to ₹2,750.00 crores.

The price band for the International Gemmological Institute IPO is set between ₹397 and ₹417 per share. The minimum lot size for an application is 35 shares, with a minimum investment amount of ₹14,595 for retail investors.

The company intends to use the net proceeds for two key purposes, to fund the acquisition of IGI Belgium Group and IGI Netherlands Group from the promoter and for general corporate purposes.

Before deciding to subscribe to the International Gemmological Institute IPO, it’s important to examine the company’s key financial results to better understand its performance and growth potential.

International Gemmological Institute Financial Performance

Revenue Breakdown

The Pre-Acquisition Group primarily provides services for the certification and accreditation of natural diamonds, laboratory-grown diamonds, studded jewellery, and coloured stones, along with offering educational programs. The company’s business model has enabled the Pre-Acquisition Group to achieve consistent growth and profitability.

For the nine-month periods ending September 30, 2024, and 2023, as well as for the calendar years 2023, 2022, and 2021, the Pre-Acquisition Group’s revenue from operations was ₹5,963.57 million, ₹4,537.88 million, ₹6,385.28 million, ₹4,909.94 million, and ₹3,646.91 million, respectively, reflecting a CAGR of 32.32% from CY2021 to CY2023.

The EBITDA margins for the Pre-Acquisition Group during the nine-month periods ending September 30, 2024, and 2023, and for CY2023, 2022, and 2021 were 71.97%, 70.81%, 70.49%, 68.27%, and 65.99%, respectively.

The profit after-tax margins for the same periods were 54.68%, 52.60%, 50.86%, 49.24%, and 47.03%, respectively. Additionally, the Pre-Acquisition Group has remained net cash positive as of September 30, 2024, and for the years ending December 31, 2023, 2022, and 2021.

About International Gemmological Institute

IGI is the world’s 2nd largest independent provider of certification and accreditation services by revenue for CY2023, ranking among global peers for certifications of diamonds, studded jewellery, and coloured stones. With a global market share of approximately 33%, IGI leads in the number of certifications performed in CY2023. Established in Belgium in 1975 with the launch of IGI Belgium, IGI has grown to operate a global network of 31 branches, equipped with IGI laboratories in 10 countries, and 18 gemology schools across 6 countries, as of September 30, 2024.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.