International Gemmological Institute shares hit 5% lower circuit as 3-month lock-in ends today

IGI's share price has had a torrid start to the year, crashing over 45 percent year-to-date.

Shares of International Gemmological Institute Ltd (IGI) slipped 5 percent to hit a lower circuit of Rs 288 in morning trade on March 18, as the expiry of its three-month shareholder lock-in period opens up 2.28 crore shares—equivalent to 5 percent of the company’s total equity—for trading.

IGI’s stock, which once soared to a post-listing high of Rs 642, has been on a steady decline, plunging nearly 55 percent to a low of Rs 282 since its debut. The stock is also trading about 30 percent below its IPO price of Rs 417.

It must be specified that the end of the shareholder lock-in period does not mean that all the shares will be sold in the Open Market but they only become eligible to be traded.

The company had made a strong market debut, listing at Rs 510 on the NSE and Rs 505 on the BSE—gaining over 21 percent on its issue price on December 20. Its initial public offer (IPO), a mix of fresh equity worth Rs 1,475 crore and an offer-for-sale of 6.59 crore shares, saw robust demand, with subscriptions of over 35 times.

In late December, IGI completed the acquisition of IGI Netherlands and International Gemmological Institute BV, making them wholly-owned subsidiaries. The move aligns with the company’s expansion plans in key markets.

IGI Netherlands, through its subsidiaries, specializes in certification and accreditation services for natural diamonds, lab-grown diamonds, studded jewellery, and coloured stones. It also offers educational programs in gemology.

Meanwhile, the International Gemmological Institute BV focuses on diamond screening and detection, quality assessment, certificate issuance, diamond sorting, laser inscription, and geology courses.

IGI's share price has had a torrid start to the year, crashing over 45 percent year-to-date.