International Gemmological Institute (IGI) shares are set to list on the NSE and the BSE today at 10 AM, with IPO investors eyeing robust listing gains and analysts expecting strong long-term returns. The diamond grading firm's Rs 4,225- crore public issue was subscribed 34 times, with the price band at Rs 397-417 per share.
IGI is a diamond, jewellery, and coloured stone certifications firm, with a 33 percent share in the diamond certification market and an impressive 65 percent share in the laboratory-grown diamond segment. The company operates under the 'IGI' brand in India and Turkey, offering a wide range of grading and classification services.
Analysts expect a robust market debut for IGI shares. Palak Devadiga, Research Analyst at StoxBox, expects the stock to list at a 28 percent premium over the upper price band, citing the company’s market leadership and potential growth in the global jewellery market.
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"As the jewellery market expands, the demand for certifications will likely grow, driving IGI’s business further. With its strong fundamentals, the company presents a solid long-term investment opportunity. We recommend that investors who have been allotted shares hold their positions from a medium to long-term perspective," she said.
Narendra Solanki, Head of Fundamental Research - Investment Services at Anand Rathi, also shared a positive long-term outlook on IGI, adding that the stock is suitable for investors looking for steady long-term returns.
"At the upper price band, the company is valued at a price-to-earnings (P/E) ratio of 43.75x, with a market capitalisation of Rs 1,80,208 million post issue and a return on net worth of 76.58 per cent," Solanki said.
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The proceeds from the IPO will be used for strategic acquisitions, including the purchase of IGI Belgium Group and IGI Netherlands Group from the promoter, as well as for general corporate purposes.
Analysts say the company's established presence and operational efficiency make it an attractive choice for investors seeking exposure to the growing demand for diamond and jewellery certification services.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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