From ₹642 to ₹330: This newly-listed stock tanks 50% in two months; down 21% from IPO price

Shares of International Gemmological Institute (IGI) extended losing streak for the second day on Tuesday, hitting lower circuit limit for the consecutive sessions. The Blackstone-backed stock has lost nearly 20% of its market value in two sessions after the diamond, jewellery and coloured stone certification firm released its earnings report for December quarter.

IGI shares touched its all-time low of ₹329.95 on the BSE today, falling 10% against the previous closing price of ₹366.60 on the BSE. The stock is down 48% from its record high level of ₹642.30 touched on January 9, 2025.

International Gemmological Institute, which made its market debut on December 20, 2024, is currently down 21% against its issue price of ₹417 per share.

IGI released its December quarter earnings report on February 28, posting 45% year-on-year (YoY) rise in net profit at ₹114 crore. The revenue jumped 6% to ₹265 crore in Q4 CY2024 as against ₹250 crore in the year-ago period. On the operating front, EBITDA climbed 18% YoY to ₹152 crore.

The board of the company also recommended an interim dividend of ₹2.44 per equity share (122% per equity share of face value ₹2) for CY24.

“With a 33% global market share in diamond certification and 65% in lab-grown diamonds, we continue to expand our presence and enhance our service offerings. The successful acquisition of IGI Belgium and IGI Netherlands further strengthens our global footprint, allowing us to serve an even wider customer base,” said Tehmasp Printer, Managing Director and CEO of IGI.

On global diamond and jewelry industry outlook, the management said the sector is undergoing a transformation driven by evolving consumer preferences, technological advancements, and increased demand for certification. Rising disposable incomes, an expanding middle-class, and the growing appeal of diamonds as a luxury investment continue to fuel market expansion.

The demand for certified diamonds, gemstones, and jewelry is expanding beyond traditional markets, reinforcing the need for transparency and trust in the industry, the company said in its report.

The gemstone certification firm raised ₹4,225 crore via IPO, which opened between December 13-17, and was subscribed 35.48 times amid good responses from all three categories of investors. The public issue offered at a price band of ₹397-417 per share was a combination of fresh issue worth ₹1,475 crore and offer for sale (OFS) aggregating to ₹2,750 crore.

Out of ₹1,475 crore raised from the issuance of fresh equities, the company intended to use ₹1,300 crore for the acquisition of IGI Belgium Group and IGI Netherlands Group from the promoter. The remaining capital will be used for general corporate purposes.

Established in February 1999, International Gemmological Institute India is one of the world’s largest independent grading and accreditation services providers for both natural and laboratory grown diamond grading. 

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