IGI IPO subscription opens today: GMP up 18%; Should you bid or avoid?

International Gemmological Institute IPO GMP is up 17.99 per cent at Rs 492 per share against the upper end of the price band of Rs 417

International Gemmological Institute's (IGI's) initial public offering (IPO) opens for subscription today, December 13, 2024. It is a book-built IPO and the price band is set in the range of Rs 397 to Rs 417 per share. At the upper end of the price band, the company seeks to raise Rs  4,225 crore through the offering. IGI IPO's offer comprises a combination of a fresh issue of 35.4 million shares aggregating to Rs 1,475 crore and an offer for sale (OFS) of 65.9 million shares aggregating to Rs 2,750 crore. 

 

On Thursday, December 12, the International Gemmological Institute IPO raised Rs 1,900.35 crore from anchor investors. Among others, names like Government Singapore, Monetary Authority of Singapore, Nomura Funds, Abu Dhabi Investment Authority, Government Pension Fund Global, Fidelity, Pinebridge Global Funds, Eastspring Investments, Carmignac Portfolio, and Natixis International Funds became new shareholders of IGI. Retail investors can bid for IGI IPO in a lot size of 35 shares and in multiples thereafter. A retail investor needs a minimum of Rs 14,595 to bid for one lot comprising 35 shares, while the maximum bid is under Rs 2,00,000 for up to 13 lots, totaling 455 shares.

 

International Gemmological Institute (IGI) IPO GMP

In the grey market, as per sources, the unlisted shares of the International Gemmological Institute were trading with a premium of Rs 75 or 17.99 per cent at Rs 492 per share against the upper end of the price band of Rs 417. 

 

Meanwhile, the public issue closes for subscription on Tuesday, December 17, 2024. Post the closure of the subscription window, the basis of the allotment of shares is expected to be finalised on Wednesday, December 18, 2024, with shares credited to investors' demat accounts by Wednesday, December 19, 2024. Shares of the International Gemmological Institute are expected to be listed on Friday, December 20, 2024.

 

KFin Technologies is the registrar for IGI IPO and Axis Capital, Kotak Mahindra Capital Company, Morgan Stanley India Company, and SBI Capital Markets are the book-running lead managers to the offer.

 

The company aims to utilise the net proceeds from the fresh offering towards funding payment of the purchase consideration for the acquisition of IGI Belgium Group and IGI Netherlands Group from the promoter which is valued at Rs 1,300 crore; and the balance amount towards general corporate purposes.

 

The selling shareholders will be entitled to their respective portions of the proceeds of the offer for sale.

Should you subscribe to IGI IPO?

AUM Capital- Subscribe

The brokerage has recommended applying for the IPO for the long term. It expects after the proposed acquisition of its international group, the company will become an undisputed leader in the gems certification business across the globe.

 

Further, a rise in disposable income for the working class is expected to lead to a rise in demand for gems and jewellery.

 

Swastika Investmart- Subscribe

Swastika has recommended applying for the IPO for investors seeking both listing gains as well as long-term growth potential.

 

The brokerage believes IGI holds a leadership position in the global market and is growing consistently in financial metrics, including robust results for the nine months ending September 2024. Further, there are no directly listed peers for comparison.