This recently listed IPO freezes at 10% lower limit; down 43% from Jan high

Shares of Blackstone-backed International Gemmological Institute India (IGI) were locked at the 10% lower circuit at Rs 366.60, also its new low on the BSE in Monday's intra-day trade.

Shares of Blackstone-backed International Gemmological Institute India (IGI) were locked at the 10 per cent lower circuit at Rs 366.60, also its new low on the BSE in Monday’s intra-day trade after the company reported a flat revenue at Rs 190.29 crore in December 2024 quarter (Q3FY25), against Rs 189.2 crore in previous quarter (Q2FY25) and Rs 184 crore in Q3FY24.

 

Till 10:44 am; a combined 2.1 million equity shares changed hands and there were pending sell orders for 2.03 million shares on the NSE and BSE. Currently, IGIL share trades 12 per cent below its issue price of Rs 417 per cent. It has corrected 43 per cent from its high of Rs 642.30 hit on January 1, 2025. IGIL made its stock market debut on December 20, 2024.

 

 

IGI, a Blackstone-backed company, is India’s largest independent accreditation and certification services provider with a 50 per cent market share. With 31 laboratories and 18 Schools of Gemology in 10 countries, IGI's global presence enables it to capitalize on the ongoing transformation in the industry.

 

In Q3FY25, IGI’s profit after tax (PAT) grew 3.6 per cent quarter-on-quarter (QoQ) and 26.8 per cent year-on-year (YoY) at Rs 111.68 crore. Earnings before interest, tax, depreciation and amortisation (Ebitda) flat at QoQ and up 9.6 per cent YoY at Rs 141.89 crore. Margins stood at 74.6 per cent in Q3FY25, against 74.7 per cent in Q2FY25 and 70.3 per cent in Q3FY24.  READ: Tata Motors sinks 47% in 7 months, fall similar to 2015; stock headed to?

 

With the group now consolidated under India, the management said it aims to leverage India's strengths in manufacturing and polishing alongside IGI’s retail presence in the USA, Europe, and China.

 

On outlook, the management said the global diamond and jewellery industry is undergoing a transformation driven by evolving consumer preferences, technological advancements, and increased demand for certification. Rising disposable incomes, an expanding middle-class, and the growing appeal of diamonds as a luxury investment continue to fuel market expansion.

 

A significant trend shaping the industry is the rapid adoption of Lab-Grown Diamonds (LGDs), which are gaining worldwide acceptance due to their affordability and sustainability. Furthermore, the demand for certified diamonds, gemstones, and jewelry is expanding beyond traditional markets, reinforcing the need for transparency and trust in the industry. IGI’s multiple service delivery formats—including IGI Labs, In-factory Labs, and Mobile Labs - enhance customer relationships and provide a distinct advantage in this evolving market, the management said.

 

Meanwhile, post listing, the domestic institutional investors (DIIs) reduced their holding in IGI by nearly 2 percentage points. At the end of December 2024 quarter, DIIs holding stood at 5.88 per cent, against 7.75 per cent at the time of listing.  However, resident individuals shareholding in IGI increased to 6.84 per cent from 5.33 per cent, the shareholding pattern data shows.