International Gemmological Institute share price hits 5% lower circuit; Here’s why

International Gemmological Institute Ltd (IGI) share price declined by 5 per cent, reaching a lower circuit of ₹288 during morning trading. This drop coincides with the end of a three-month lock-in period, releasing 2.28 crore shares—equivalent to 5 percent of the company's total equity—into the market for trading.

Since its listing, IGI stock has experienced a significant decline. After reaching a post-listing high of ₹642, the stock has fallen nearly 55 per cent to a low of ₹282. Currently, it is trading approximately 30 per cent below its IPO price of ₹417.

It's important to note that the conclusion of a shareholder lock-in period doesn't necessarily result in all shares being sold in the open market; it merely allows those shares to be traded.

IGI stock movement

The company made a strong market debut on December 20, listing at ₹510 on the NSE and ₹505 on the BSE, marking a gain of over 21 per cent from its issue price. Its initial public offering (IPO), which included fresh equity worth ₹1,475 crore and an offer-for-sale of 6.59 crore shares, experienced robust demand, with subscriptions exceeding 35 times.

In late December 2024, the International Gemmological Institute (IGI) finalized the acquisition of IGI Netherlands B.V. and International Gemmological Institute BV, making them wholly-owned subsidiaries. This strategic move aligns with IGI's plans to expand its core business in significant markets.

International Gemmological Institute BV focuses on diamond screening and detection services, quality assessments, diamond sorting, laser scribing of diamonds, and gemology courses. These acquisitions are expected to enhance IGI's global presence and strengthen its offerings in gemological services.

In terms of Year-to-Date (YTD), IGI shares have crashed over 50 per cent since the start of the year, declining from ₹594.90 apiece to current market levels.

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