International Gemmological Institute (India) Limited company's primary business is the provision of services related to the certification and accreditation of natural diamonds, laboratory-grown diamonds, studded jewellery and colored stones as well as the offering of educational programs. The company is part of the International Gemmological Institute ('IGI') group, and is responsible for the operation of the business under the 'IGI' brand exclusively in India and Türkiye. IGI is one of the established reputed certifiers in the global market. In India, which is the world's largest center for cutting and polishing diamonds accounting for approximately 95% of the world's total polished diamonds in volume terms in CY2023, IGI India is the largest independent certification and accreditation services provider in India, holding approximately 50% market share in terms of number of certifications of diamonds, studded jewellery and colored stones for CY2023. As of September 30, 2024, company has 19 IGI laboratories in India and 1 IGI laboratory in Türkiye which perform certification services. The network of 20 laboratories and 9 schools are supported by 843 employees, including 316 gemologists and other professionals in research, education, and certification processes as of September 30, 2024. Over the years, they have further strengthened the relationships with the customers and stakeholders through various initiatives such as introducing co-branded reports, in-factory laboratory set-ups, mobile laboratory set-ups, and continually expanding the suite of certification and accreditation services. For example, in 2021, the Company launched in-factory laboratory set-ups for laboratory-grown diamond growers in India to deliver on-site certification services to the customers to provide a more convenient option to fulfil their certification needs. Post Acquisition the company will be IGI India, its subsidiary, the IGI Belgium Group and the IGI Netherlands Group. As of September 30, 2024, IGI had over 7,500 customers located across 10 countries, including laboratory-grown diamonds growers, natural diamond and colored stone wholesalers, jewellery manufacturers and retailers. IGI has developed multi-year relationships with many brands and retailers, including international jewellery brands and retailers. IGI’s certification business is conducted through its global network of 31 branches as of September 30, 2024 which are equipped with IGI laboratories located across 10 countries, including in key markets such as Surat and Mumbai in India, Antwerp, Belgium, New York, USA, Bangkok, Thailand, Dubai, UAE, Hong Kong and Shanghai, the PRC, among other cities. IGI’s global presence allows it to serve customers across geographies and assists in providing timely and accessible services. As per financial performance, International Gemmological Institute (India) Limited has posted total income / net profits of Rs 374.29 Cr / Rs 171.53 Cr (FY21), Rs 499.33 Cr / 241.76 Cr (FY22), Rs 648.66 Cr / Rs 324.74 Cr (FY23) and Rs 619.49 Cr / 326.06 Cr (Q3 FY24). So as per previous financials data, company has shown good growth. Company has an average EPS of Rs 6.84 and average RoNW of 78.40% for last three fiscals. Issue is priced at a P/BV of 25.71 as per NAV of Rs 16.22/- as on 30.09.24. If we attribute latest earnings of FY22, FY23, TTM and annualised FY24 on equity post issue, then asking price is at a P/E of around 74.54, 55.49, 43.73 and 41.45 respectively. As per RHP, there is no listed peers as per RHP. On BRLM's front, four lead managers are associated with this IPO, and have handled around 109 IPOs in last three fiscals. ( As on 09.12.24 ) As per financials, International Gemmological Institute (India) Limited has shown good growth, RoNW is 76.58% and P/E is 74.54, 55.49, 43.73 and 41.45 respectively as per FY22, FY23, TTM and annualised FY24 earnings. Company has shown good growth, but promoter has bought shares at price of Rs 81.36/- in May 2023 and now selling at Rs 417/-. Company is in business of provide certification and accreditation services for diamonds, studded jewellery and colored stones, which is unique business segment. So, we give SUBSCRIBE rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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