International Gemological Institute Share Price Declines as Lock-in Period Ends

Market Performance

Shares of International Gemological Institute Ltd (IGI) declined by 5 per cent, reaching a lower circuit of Rs 288 in early trading on March 18. This drop coincides with the conclusion of the three-month shareholder lock-in period, making 2.28 crore shares, representing 5 per cent of the company’s total equity, eligible for trading.

Since its listing, IGI’s stock has experienced a consistent downward trend, falling nearly 55 per cent from its peak of Rs 642 to Rs 282. The stock is also trading approximately 30 per cent below its IPO issue price of Rs 417.

Lock-in Period Expiry

The end of the shareholder lock-in period signifies that these shares are now available for trading in the open market, but it does not imply an immediate sale of all unlocked shares.

Company Listing and Initial Market Performance

IGI made its market debut on December 20, listing Rs 510 on the NSE and Rs 505 on the BSE. This represented a gain of over 21 per cent from its issue price. The company’s initial public offering (IPO) comprised fresh equity worth Rs 1,475 crore and an offer-for-sale of 6.59 crore shares. The IPO witnessed strong demand, with subscriptions exceeding 35 times the available shares.

Business Expansion and Acquisitions

In late December, IGI finalized the acquisition of IGI Netherlands and International Gemmological Institute BV, integrating them as wholly-owned subsidiaries. This acquisition aligns with IGI’s strategic expansion into key markets.

IGI Netherlands operates through subsidiaries that provide certification and accreditation services for natural and lab-grown diamonds, studded jewellery, and coloured stones. Additionally, the company offers educational programs in gemology.

International Gemmological Institute BV specializes in diamond screening, quality assessment, certification, sorting, laser inscription, and geological studies.

Summary

IGI’s stock has faced significant volatility since its listing, with a sharp decline from its peak. The expiration of the shareholder lock-in period has made a substantial number of shares available for trading, although this does not necessarily mean an immediate increase in market supply. The company continues focusing on business expansion through strategic acquisitions and certification services in the diamond and gemstone industry.