IG
International Gemmological Institute (India)
Book Building issueMainboardNSE
+21.07%
Listing gain over issue price
Open
13 Dec 2024
Close
17 Dec 2024
Listing
20 Dec 2025
Listing performance
Issue price
₹417
Listed at
₹504.85
Listing-day close
—
Latest price
—
Listing gain
+21.07%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 13 Dec 2024 – 17 Dec 2024
- Listing date
- 20 Dec 2025
- Face value
- ₹2 per share
- Issue price
- ₹417 per share
- Issue type
- Book Building issue
- Listing at
- NSE
- ISIN
- INE0Q9301021
Valuation and performance
Valuation at offer price
₹417 per share
| Metric | Pre-issue | Post-issue |
|---|
About International Gemmological Institute (India)
International Gemmological Institute (India) Limited (IGI India) is part of the International Gemmological Institute group and provides independent certification and accreditation services for diamonds, studded jewelry, and colored stones. The company operates 20 laboratories and 9 schools globally as of September 30, 2024. IGI India was incorporated as a private limited company on February 23, 1999, and converted to a public limited company on July 10, 2024. The company is responsible for operating the IGI business exclusively in India and Türkiye under the IGI brand. Following the proposed acquisitions, IGI will become responsible for managing the global IGI business. The company earns revenue from certification services for loose stones and studded jewelry, schools of gemology, and related services.
Company Analysis
from RHPInternational Gemmological Institute (India) Limited is an independent certification and accreditation services provider for diamonds, studded jewelry and colored stones, operating globally across multiple countries.
International Gemmological Institute (India) Limited (IGI India) is part of the International Gemmological Institute group and provides independent certification and accreditation services for diamonds, studded jewelry, and colored stones. The company operates 20 laboratories and 9 schools globally as of September 30, 2024. IGI India was incorporated as a private limited company on February 23, 1999, and converted to a public limited company on July 10, 2024. The company is responsible for operating the IGI business exclusively in India and Türkiye under the IGI brand. Following the proposed acquisitions, IGI will become responsible for managing the global IGI business. The company earns revenue from certification services for loose stones and studded jewelry, schools of gemology, and related services.
Gemological certification and accreditationJewelry testing and certificationEducation (gemology schools)Certification services for diamonds and colored stones
Objects of the Issue
- Payment of the purchase consideration for the acquisition of the IGI Belgium Group and IGI Netherlands Group from our Promoter ₹13,000.00 million p.21
- General corporate purposes ₹1,097.40 million p.21
- Payment of the purchase consideration for the acquisition of the IGI Belgium Group and IGI Netherlands Group from our Promoter p.90
- General corporate purposes p.90
- Payment of the purchase consideration for the acquisition of the IGI Belgium Group and IGI Netherlands Group from our Promoter ₹13,000.00 million (92.22% of Net Proceeds) p.95
- General corporate purposes ₹1,097.40 million (7.78% of Net Proceeds, not exceeding 25% of Gross Proceeds) p.95
- Acquisition of 100% share capital of IGI Belgium and IGI Netherlands from the Promoter Aggregate purchase consideration of $158.20 million (equivalent to ₹13,244.63 million) as adjusted, comprising Belgium acquisition at $69.76 million and Netherlands acquisition at $88.44 million p.152
- Acquisition of 100% shareholding in IGI Belgium Group and IGI Netherlands Group p.520
- General corporate purposes p.90
Issue Structure
- Total Issue
- 101,323,893 equity shares of face value ₹2 each aggregating to ₹42,250 million
- Fresh Issue
- 35,376,651 equity shares of face value ₹2 each aggregating to ₹14,750 million
- Offer for Sale
- 65,947,242 equity shares of face value ₹2 each aggregating to ₹27,500 million
- Price Band
- ₹397 per equity share (Floor Price) to ₹417 per equity share (Cap Price)
- Lot Size
- 35 equity shares and in multiples of 35 equity shares
- Face Value
- ₹2 each
Business Model
The company earns revenue from certification and accreditation services for diamonds (natural and laboratory-grown), colored stones, and studded jewelry. It also operates educational institutions (IGI Schools of Gemology) and provides related services. Revenue is generated by certifying gemstones and jewelry through its network of laboratories located in various countries.
Business Segments
Provides independent certification and accreditation services for diamonds, studded jewelry and colored stones
Operates 9 schools providing education and training in gemology
Certification and accreditation of laboratory-grown diamonds
Certification and accreditation of natural diamonds
Certification and accreditation of studded jewelry and colored stones
Gemology education services
Grading, classification, and certification of natural diamonds, laboratory-grown diamonds, studded jewelry, and colored stones
Offering educational programs in gemology, diamond grading, jewelry design and related subjects through IGI Schools
Sale of D-check machines, advertisement income, and commission income on exports
Certification and grading of natural diamonds based on international standards including the 4Cs (cut, color, clarity, carat weight), with detailed assessments and reports
Certification and grading of laboratory-grown diamonds including identification of production methods (HPHT or CVD), detection of post-growth treatments, and differentiation from natural diamonds
Grading and certification of finished jewelry pieces featuring diamonds or colored stones, assessment of craftsmanship, mounting quality, and identification of colored stone characteristics including origin
Provision of gemology education and training courses through IGI Schools of Gemology, including graduate programs, diamond courses, colored stone courses, and jewelry design courses offered to institutions and individuals
Grading and certification of diamonds, colored stones, and jewelry; core revenue-generating service delivered upon generation and issuance of certification reports.
Gemological education through School of Gemmology providing courses on sorting and grading of gems, diamonds and jewelry; revenue recognized over time as courses are completed.
Sale of traded goods related to gemmology; revenue recognized at point of time when control transfers to customer.
Certification and grading of diamonds, gemstones, and jewelry items
Gemology education and training programs
Sale of diamonds and gemological equipment
Grading and certification of diamonds, colored stones and jewellery
School of Gemmology offering courses for professionals and consumer enthusiasts
Grading and certification of diamonds, colored stones and jewellery, measured at a point in time upon satisfaction of the performance obligation when the report/certificate is generated and ready to be issued to the customer
Providing gemological education on sorting and grading of gems, diamond and jewellery, recognized over a period of time as the educational course is completed
Grading and certification of diamonds, colored stones, and jewellery with comprehensive analysis and clear documentation
Gemological education on sorting and grading of gems, diamonds, and jewellery designed for professionals and consumer enthusiasts
Grading and certification of diamonds, colored stones and jewellery measured at a point in time upon satisfaction of the performance obligation, when the report/certificate in relation to completion of such activities is generated and is ready to be issued to the customer.
Providing gemological education on sorting and grading of gems, diamonds and jewellery recognized over a period of time as and when the educational course is completed.
Comprehensive diamond grading and certification services for natural diamonds, including reports assessing the 4Cs (cut, color, clarity, and carat weight)
Certification and grading services for laboratory-grown diamonds, which is the fastest growing sub-segment within the overall jewelry market
Grading and assessment of finished jewelry pieces and evaluation of colored stones including rubies, sapphires, emeralds, and other precious and semi-precious stones
Educational programs and courses in gemology, diamond grading, jewelry design and related subjects for professionals and enthusiasts in the diamonds, studded jewelry and colored stones industry
SWOT Analysis
Strengths
- • Established 50-year legacy brand with global reputation in diamond and gemstone certification(p.40)
- • Experienced Board and management with extensive experience in the certification business(p.40)
- • Leading position in laboratory-grown diamond certification with growing revenue share(p.51)
- • Strong revenue growth and profitability with robust EBITDA margins(p.47)
- • Established brand with global laboratory network across 10 countries(p.57)
- • Quality accreditation and technical expertise with ISO/IEC 17025:2017 certification(p.43)
- • In-house developed proprietary software for operational management and customer engagement(p.53)
- • Stable key management with zero attrition at senior levels(p.45)
- • 100% promoter ownership ensures strategic control and alignment of interests(p.89)
- • All shares in dematerialized form eliminates operational and settlement risks(p.90)
- • Promoter shares not encumbered, providing unencumbered asset backing(p.90)
- • Global market leader in lab-grown diamond certification with 65% market share(p.150)
- • World's second-largest independent certification provider with 33% global market share(p.164)
- • First-mover advantage in lab-grown diamond certification globally(p.138)
- • Dominant position in India with 50% market share in certification services(p.164)
- • High-margin, capital-light business model with strong profitability(p.173)
- • Comprehensive service offering across all stone types as one of three full-stack providers globally(p.145)
- • Largest global laboratory network among peers with 31 branches across 10 countries(p.164)
- • Established market position with 50+ year legacy(p.190)
- • Advanced proprietary technology for diamond detection(p.188)
- • Comprehensive global laboratory network(p.190)
- • In-house developed integrated software platform(p.189)
- • Strong employee base with low senior management attrition(p.191)
- • Diversified intellectual property portfolio(p.189)
- • Robust data security infrastructure(p.189)
- • Comprehensive accounting policy framework with detailed financial instruments governance(p.238)
- • Established defined benefit pension scheme for employee retention(p.240)
- • Strong cash position with significant fixed deposits(p.251)
- • Diversified revenue streams from certification and educational services(p.256)
- • Robust credit risk management with expected credit loss provisions(p.265)
- • Established certification and grading services across diamonds, gemstones, and jewellery(p.373)
- • Multi-jurisdictional presence with operations across Belgium and outside Belgium(p.363)
- • Diversified revenue streams from certification services and educational courses(p.352)
- • Significant goodwill and intangible asset base indicating established brand value(p.348)
- • Educational offerings at multiple locations providing recurring revenue(p.373)
- • Global certification service network across multiple jurisdictions(p.445)
- • Diversified revenue streams from both certification services and educational offerings(p.442)
- • Consistent revenue growth trajectory(p.442)
- • Strong profitability with improving margins(p.442)
- • Global presence through subsidiaries in key markets(p.445)
- • Established global network of certification laboratories across multiple countries with consistent grading standards(p.459)
- • Diversified revenue streams from both certification services and educational courses(p.463)
- • Strong profitability with growing net profit and positive cash generation(p.499)
- • Largest independent certification provider in India with ~50% market share(p.513)
- • Global leader in lab-grown diamond certification with ~65% market share(p.516)
- • World's second-largest independent certification provider globally(p.516)
- • Largest global laboratory and school network among peers(p.516)
- • Strong profitability with 71.97% EBITDA margin(p.516)
- • Experienced leadership with 25 years at the helm(p.515)
- • Support from world's largest alternative asset manager(p.515)
Weaknesses
- • Most business operations conducted on leased or leave-and-license premises with uncertain renewal prospects(p.40)
- • Certain leased premises not adequately stamped or registered under Indian law(p.40)
- • Promoter lacks significant experience in the certification business(p.40)
- • Heavy concentration of shareholding with Promoter post-IPO limiting governance diversity(p.40)
- • No exclusive or long-term contracts with customers creating revenue continuity risk(p.35)
- • High customer concentration risk with top 15 customers representing ~51% of revenue(p.45)
- • No exclusive or long-term contracts with customers, all orders on as-needed basis(p.42)
- • Instances of delays in statutory dues payments despite compliance(p.48)
- • Outstanding legal proceedings including show cause notices from government agencies(p.42)
- • MCA compliance violations in prior periods requiring potential compounding(p.44)
- • Related party transactions with significant dependence on entities controlled by promoter for property leasing(p.41)
- • No insurance coverage for customer claims related to certification process(p.43)
- • High gemologist attrition rate of 10.65% in nine-months ended September 30, 2024(p.45)
- • Significant portion of proceeds directed to promoter as acquisition consideration(p.34)
- • Substantial acquisition financing dependency—92% of net proceeds allocated to purchase consideration(p.95)
- • Post-acquisition, company responsible for managing geographically dispersed international business(p.32)
- • High concentration of revenue in India at 97.82% of total revenue(p.185)
- • High dependence on top customers with top 10 customers representing 44.17% of revenue(p.186)
- • Reliance on human judgment in subjective grading process with tolerance for variance(p.149)
- • Dependent on skilled gemologist workforce with need for continuous calibration and training(p.184)
- • Dependence on few major customers and market concentration(p.189)
- • Lease-dependent property model with concentration risk(p.190)
- • Limited proprietary land holdings outside core facility(p.190)
- • High dependence on information technology systems(p.189)
- • Vulnerability to counterfeit certificates and IP infringement(p.190)
- • Insurance coverage gaps for high-value inventory(p.191)
- • Concentrated trade receivables with significant aging beyond one year(p.251)
- • Rising provision for expected credit loss on trade receivables(p.265)
- • Significant capital work-in-progress with multi-year carryover(p.249)
- • Employee benefit obligations growing with business expansion(p.254)
- • Material lease liabilities creating long-term fixed obligations(p.254)
- • Significant lease obligations with long-term commitments creating financial burden(p.346)
- • Operating losses and declining profitability in recent periods(p.370)
- • High employee benefit obligations and compensated absences liabilities(p.351)
- • Rising provision for doubtful debts and credit losses(p.359)
- • Dependence on related party transactions for significant portion of revenues and receivables(p.357)
- • Declining cash position and increased working capital requirements(p.441)
- • Significant increase in lease obligations and right-of-use assets(p.441)
- • Trade receivables decline indicating potential revenue collection challenges(p.441)
- • Exposure to litigation with uncertain outcome(p.435)
- • Significant employee benefit obligations relative to size(p.441)
- • Concentration of borrowings from related parties creating financial dependency(p.495)
- • Significant provision for doubtful debts indicating credit quality concerns(p.493)
- • High employee benefit obligations relative to current operations(p.495)
- • Material litigation exposure with indeterminate outcome(p.472)
- • High customer concentration with top 15 customers at 51.45% of revenue(p.520)
- • Heavy dependence on lab-grown diamond growers representing 58.95% of revenue(p.520)
- • Litigation exposure with KS Trade LLC complaint alleging over-grading(p.534)
- • Employment-related litigation pending on unfair labor practices(p.535)
- • Regulatory compliance issues identified by Ministry of Corporate Affairs(p.535)
- • High days sales outstanding at 54.75 days indicating collection challenges(p.519)
Opportunities
- • Global certification demand expected to grow 5-10% CAGR through 2028(p.21)
- • Laboratory-grown diamonds certification leading volume growth in the certification market(p.21)
- • Global jewelry market expected to grow 3-6% CAGR through 2028(p.21)
- • Post-acquisition, company will operate globally with integrated IGI business(p.36)
- • Expansion of global laboratory network and geographic footprint(p.53)
- • Growth in laboratory-grown diamond certification market with expanding customer base(p.48)
- • Investment in new technologies including AI and spectroscopy for competitive advantage(p.53)
- • Maintenance of market leadership in laboratory-grown diamond certification and expansion in natural diamonds and studded jewelry(p.47)
- • Build brand salience and expand customer network globally(p.47)
- • Global jewelry market growing at 3-6% CAGR, with emerging markets expanding faster(p.119)
- • India's discretionary spending projected to rise significantly—jewelry market growing at 13-15% CAGR(p.127)
- • Lab-grown diamond market expanding rapidly at ~20% CAGR, offering affordability advantage(p.135)
- • Organized jewelry retail gaining share in India, growing from 35% in 2023 to 40-50% by 2028(p.129)
- • India positioned as leading consumer market with 12% jewelry CAGR through 2028(p.120)
- • Lab-grown diamonds expected to grow at 15% CAGR through 2028, driving certification demand(p.170)
- • Global certification market expected to grow at 5-10% CAGR with LGD certification growing at 22% CAGR(p.147)
- • Increasing shift towards organized retail and D2C channels creating certification demand(p.147)
- • Expanding second-hand diamond jewelry market requires certification for authenticity(p.148)
- • Opportunity to expand certification of smaller diamonds as authenticity concerns grow(p.148)
- • India government supporting LGD industry with infrastructure, FDI and duty exemptions(p.141)
- • Growing consumer awareness and demand for certified diamonds and ethical sourcing(p.147)
- • Expansion of laboratory network to new geographies(p.190)
- • Development of large-scale integrated facility(p.191)
- • Acquisition of complementary certification entities(p.198)
- • Educational program expansion for skill development(p.191)
- • Women empowerment and talent pipeline development(p.192)
- • ESG-aligned infrastructure development(p.191)
- • Expansion of certification services across geographies(p.270)
- • Growth in educational course offerings as core revenue driver(p.256)
- • Acquisition of target entities to expand global presence(p.274)
- • Enhancement of intangible assets through software development(p.250)
- • Leverage capital investments in infrastructure modernization(p.249)
- • Expansion of educational course offerings in gemology and diamond grading(p.385)
- • Geographic expansion opportunities outside Belgium market(p.363)
- • Growth in certification services as demand for transparent gemstone documentation increases(p.352)
- • Cross-selling opportunities through related party network across multiple jurisdictions(p.357)
- • Expansion of educational and training programs(p.445)
- • Growth in international markets through existing subsidiaries(p.436)
- • Enhanced market positioning through India IPO(p.445)
- • Leverage brand reputation for value-added services(p.445)
- • Expansion of educational courses segment which is growing faster than certification(p.486)
- • Geographic expansion potential evidenced by operations in 9 countries(p.482)
- • Lab-grown diamonds fastest-growing sub-segment with 19% CAGR(p.516)
- • Global expansion through acquisition of IGI Belgium and IGI Netherlands(p.520)
- • Expansion of laboratory network to meet rising demand(p.521)
- • Diversified product offerings across certification and education(p.514)
- • Strong revenue growth with 32.32% CAGR from CY2021 to CY2023(p.516)
Threats
- • Certification market growth depends on studded jewelry market growth which is subject to cyclicality(p.21)
- • Adverse publicity or loss of reputation could severely damage brand and reduce customer demand(p.40)
- • Damage to co-branded partners' reputations could negatively impact IGI brand(p.40)
- • Risk of integration challenges managing globally dispersed business post-acquisition(p.38)
- • Lessor defaults or mortgage enforcement on leased premises could disrupt operations(p.40)
- • Fluctuations in diamond prices and industry cyclicality impacting demand for certification services(p.48)
- • Geopolitical risks affecting diamond supply, particularly Russian sanctions due to Ukraine conflict(p.48)
- • Intense global competition from major established players and emerging competitors(p.51)
- • Risk of counterfeit certificates and branded products damaging reputation and customer trust(p.49)
- • Cybersecurity risks including ransomware attacks and DDoS attacks affecting operations(p.59)
- • Subjective nature of grading process creating risk of errors, fraud and quality control failures(p.50)
- • Regulatory and legal uncertainties in multiple jurisdictions affecting international operations(p.57)
- • Foreign exchange volatility impacting reported financial results and profitability(p.58)
- • Volatility in paper supply and pricing for certificate production(p.50)
- • Natural diamond supply concentrated in Russia; geopolitical sanctions threaten supply stability(p.132)
- • Lab-grown diamond prices have declined sharply, compressing industry margins and profitability(p.135)
- • LGD production oversupply creating pricing pressure with unclear margin sustainability(p.135)
- • Global diamond market remains fragmented and unorganized in key regions, with intense competition(p.134)
- • Volatility in global diamond prices impacting demand for certification services(p.150)
- • Technological advancements in counterfeiting and synthetic production making differentiation harder(p.150)
- • AI and machine learning could automate grading, reducing need for human expertise(p.150)
- • Economic downturns reducing luxury goods purchases and certification demand(p.150)
- • Geopolitical risks and conflicts disrupting supply chains and diamond availability(p.150)
- • Environmental and ethical concerns reducing natural diamond demand and services(p.150)
- • Reputation damage from fraud or inaccuracies in certification severely impacts business(p.150)
- • Oligopolistic market dominated by well-established competitors(p.190)
- • International competition from major global players(p.190)
- • Regional competition in key diamond markets(p.190)
- • Regulatory changes affecting foreign trade(p.193)
- • Labor law changes and regulatory complexity(p.195)
- • Foreign exchange volatility affecting international operations(p.194)
- • Hyperinflation impact on Turkish subsidiary operations(p.236)
- • Foreign exchange volatility impacting overseas operations and receivables(p.265)
- • Litigation risks from customers and regulatory bodies(p.268)
- • Pending labour court disputes affecting operational continuity(p.268)
- • Trade receivables collection risk with extended payment cycles(p.251)
- • Regulatory compliance risk requiring corporate social responsibility spending(p.272)
- • Litigation risk from dispute regarding alleged diamond over-grading practices(p.393)
- • Foreign currency exchange risk from Euro functional currency affecting INR presentation(p.350)
- • Industry-wide competition and commodity pricing pressure on certification services(p.352)
- • Dependence on subjective actuarial assumptions for employee liabilities(p.356)
- • Vulnerability to changes in international gemstone certification standards and regulations(p.375)
- • Foreign currency translation volatility impacting profitability(p.442)
- • Dependency on single business segment with limited diversification(p.436)
- • Potential regulatory scrutiny in gemstone certification industry(p.435)
- • Concentration risk with limited customer base(p.394)
- • Exposure to diamond and gemstone market cyclicality and pricing fluctuations(p.445)
- • Foreign exchange volatility affecting consolidated results due to multi-currency operations(p.450)
- • Pending litigation in New York alleging misrepresentation in diamond grading standards(p.472)
- • Regulatory changes in multiple jurisdictions affecting operations(p.489)
- • Significant decline in lab-grown diamond prices reducing demand for certification(p.519)
- • Russia-Ukraine conflict limiting natural diamond supply(p.519)
- • Intense competition from established global and regional players(p.521)
- • Competitors may undercut prices impacting profitability(p.522)
- • Foreign exchange fluctuations affecting post-acquisition group performance(p.522)
- • Regulatory changes and policy implementation risks(p.522)
- • Cyclicality and macro-economic sensitivity of diamond industry(p.519)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| BCP Asia II TopCo Pte. Ltd. | Promoter/Promoter Selling Shareholder | 100% | 76.55% |
| BCP TopCo | Promoter/Promoter Group | — | — |
| BCP TopCo | Promoter and Promoter Selling Shareholder | 100% | 76.55% |
| BCP Asia II TopCo Pte. Ltd. | Promoter | 100.00% | — |
| BCP TopCo (BCP Asia II TopCo Pte. Ltd.) | Promoter | — | 100% |
| BCP Asia II Topco Pte. Ltd | Promoter/Holding Company (from 19 May 2023) | 99.9997% as at 30 September 2023 | 100.000000% as at 30 September 2024 |
| Alpha Yu B.V. | Former Promoter (until 18 May 2023) | 80.00% as at 31 December 2022 | 0% (transferred to BCP Asia II Topco Pte. Ltd in 2023) |
| Lorie Holdings B.V. | Former Promoter (until 18 May 2023) | 20.00% as at 31 December 2022 | 0% (transferred to BCP Asia II Topco Pte. Ltd in 2023) |
| BCP Asia II Topco Pte. Ltd. | Holding Company (From 19 May 2023) | — | — |
| BCP Asia II Topco Pte. Ltd. | Holding Company | — | — |
| BCP Asia II TopCo Pte. Ltd. | Promoter | 100.00% | — |
| BCP Asia II TopCo Pte. Ltd. | Promoter Selling Shareholder | — | — |
Leadership
Bimal Tanna · Chairman and Independent Director
Tehmasp Nariman Printer · Managing Director and Chief Executive Officer
Easwar Subramanian Iyer · Chief Financial Officer
Hardik Desai · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.