International Gemmological Institute shares listed on the NSE with a premium of 22 percent over its issue price on December 20, following a bumper subscription of 34 times to its Rs 4,225- crore public issue in the primary market.
The diamond grading firm International Gemmological Institute stock listed at Rs 510 per share on the NSE, a healthy premium of 22.30 percent over the IPO price. The issue had a price band of Rs 397 - 417 per share. With the listing, the market capitalisation of the company reached Rs 22,040.14 crore.
IGI share listing was better than the expectations in the grey market, which is an unofficial market for trading in IPO shares till the listing.
On the BSE, the shares of the company were listed at Rs 504.85 per share, a premium of 21.06 percent.
"While 'IGI' stands for the International Gemological Institute, for us, it represents 'Integrity, Growth, and Innovation,' which are the guiding principles of our journey together," Mukesh Mehta, Senior Managing Director, Blackstone said on the listing.
The company proposes to utilise the proceeds from the fresh issue for the acquisition of IGI Belgium Group and IGI Netherlands Group from promoter, and 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.
Narendra Solanki, Head of Fundamental Research - Investment Services at Anand Rathi, 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.
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.
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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