Incorporated in February 1999, International Gemmological Institute (India) Limited (IGI) is a global leader in the certification and grading of diamonds, gemstones, and jewellery. It provides independent grading reports, evaluating attributes like colour, cut, clarity, and carat weight, along with offering gemology and jewellery-related education.
IGI has a network of 31 laboratories in major markets, including Surat, Mumbai, Antwerp, New York, Bangkok, Hong Kong and Dubai, and 18 gemology schools worldwide. As of September 30, 2024, IGI employed 800+ professionals, including 316 gemologists, and served 7,500+ clients across 10 countries.
With a 42% global market share in studded jewellery certification in CY2023, IGI also worked with 9 of India’s top 10 jewellery chains by revenue for FY2024. From CY2021 to CY2023, IGI’s revenue grew at a CAGR of over 20.5%, and its net profit rose by 23.7%.
As the jewellery market, valued at ₹26,600 billion in CY2023, grows at 3-6% CAGR and the lab-grown diamond sector at 15% CAGR between CY2023 to CY2028, IGI stands to benefit from increasing certification demand.
IPO Details
IGI is now launching its IPO. The total IPO issue size is ₹4,225 crore, comprising fresh issues and offer-for-sale shares. Its shares will be listed on the NSE and BSE.
Key Details
- Company Name: International Gemmological Institute.
- Company Established On: February 23, 1999
- Company Type: Private Limited Company
- CEO/MD: Tehmasp Nariman Printer
Financial Overview (₹ crore)
| Particulars | CY21 (Standalone) | CY22 (Consolidated) | CY23 (Consolidated) | 9MCY24 (Consolidated) |
|---|---|---|---|---|
| Revenue | 364.69 | 490.99 | 638.53 | 569.35 |
| Net Profit | 171.53 | 241.76 | 324.74 | 326.06 |
Strengths
IGI leads in lab-grown diamond certification, driven by rising demand and market expansion. Operating in a competitive industry with high entry barriers, IGI showcases a strong market position and offers comprehensive certification services across the the gem and jewellery value chain. Its educational initiatives boost brand awareness, foster client relationships, and promote gemology knowledge. Consistent revenue growth and operational efficiency highlight its robust business strategy. Backed by experienced management and significant financial resources, IGI employs dynamic pricing to enhance efficiency, build loyalty, and sustain its competitive edge.
Risks
Acquiring IGI Belgium and IGI Netherlands may bring challenges like inefficiencies, inconsistency in standards, and cultural/language barriers, potentially disrupting global operations. Heavy reliance on leased premises poses risks if agreements are not renewed. With revenue coming from its top 15 customers, losing any could severely impact business. The concentration of operations in Gujarat and Maharashtra makes the company vulnerable to regional disruptions. Dependence on IT systems increases risks from cyberattacks or system failures. Legal proceedings, regulatory scrutiny, and geopolitical issues add to operational and reputational challenges.
You can now apply for the International Gemmological Institute IPO on Upstox. Click here.