The share price of the International Gemmological Institute Ltd (IGI) took a significant hit, plummeting by 5% to a lower circuit of ₹288 during morning trading. This decline comes right as a three-month lock-in period comes to an end, releasing 2.28 crore shares—representing 5% of the company’s total equity—into the trading market. Since its initial public offering (IPO), IGI’s stock has faced a considerable downturn.
A Notable Drop Since Listing
After peaking at ₹642 shortly after its listing, IGI has seen its value diminish by almost 55%, hitting a low of ₹282. Presently, the stock is trading around 30% lower than its IPO price of ₹417.
It’s crucial to understand that the conclusion of a shareholder lock-in period doesn’t automatically mean that all newly released shares will flood the market for sale. Instead, it simply permits trading of these shares.
Market Debut and Subsequent Developments
IGI made a remarkable entrance into the market on December 20, debuting at ₹510 on the NSE and ₹505 on the BSE, which represented a gain of over 21% from its issue price. The IPO attracted substantial interest, with subscriptions surpassing 35 times the available shares.
In a strategic move aimed at expanding its reach, the International Gemmological Institute finalized the acquisition of IGI Netherlands B.V. and International Gemmological Institute BV in late December 2024. These companies are now wholly-owned subsidiaries, which is expected to bolster IGI’s operations in key markets.
Strengthening Global Presence
The focus of International Gemmological Institute BV includes services in diamond screening, quality assessments, diamond sorting, laser scribing, and gemology education. These acquisitions are anticipated to enhance IGI’s global footprint and enrich its offerings in gemological services.
Year-to-Date Performance
From a Year-to-Date (YTD) perspective, IGI shares have seen a staggering decline of over 50% since the year began, dropping from ₹594.90 to current trading levels.
In summary, while IGI is navigating a challenging market phase, strategic acquisitions and a focus on core business areas may help stabilize its performance in the future.
