When it comes to investing in IPOs, investors often face a dilemma when multiple IPOs hit the market simultaneously, but choosing the right one can make a significant difference in returns.

This week, apart from the other mainboard and SME IPOs, two prominent public issues are also in the spotlight – International Gemmological Institute (IGI) and Inventurus Knowledge Solutions (IKS Health). Both the mainboard IPOs are currently open for subscription with investors keenly evaluating their options.

The two IPOs offer unique opportunities in the way but which one is worth your money? Let’s take a  detailed comparison of both the offering and evaluate which one suits your investment goals better.

International Gemmological Institute IPO

The Rs 4,225 crore issue opened for subscription on today, (December 13) with a price band set between Rs 397 to Rs 417 per share by the company.

International Gemmological Institute IPO issue comprises both fresh equity and Offer-For-Sale (OFS), with the proceeds from the fresh issue aimed at enhancing the company’s growth.

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Investors can bid in lots of 35 shares, requiring a minimum investment of Rs 14,595 for retail participants. The IPO is scheduled to close its bidding window on Tuesday (December 17), with allotments expected on December 18 and a listing date slated for December 20.

Lead managers for the issue include Axis Capital, Kotak Mahindra Capital, Morgan Stanley, and SBI Capital Markets.

“The issue is priced at a P/BV of 25.71 based on its NAV of Rs. 16.22 as of September 30, 2024, and at a P/BV of 8.51 based on its post-IPO NAV of Rs. 49.02 (at the upper cap). If we attribute FY25 annualized earnings to its post-IPO fully diluted paid-up equity capital, the asking price is at a P/E of 82.90. Based on FY24 earnings, the P/E stands at 110.90, suggesting that the issue appears fully priced,” said Bajaj Broking in an IPO note on International Gemmological Institute.

Inventurus Knowledge Solutions IPO

Inventurus Knowledge Solutions which is a healthcare technology solutions provider opened its Rs 2,498 crore public issue on Thursday (December 12).

The price band for this OFS-driven issue is higher at between Rs 1,265 to Rs 1,329 per share. Retail investors need to bid for a minimum of 11 shares, translating to an investment of Rs 14,619.

The IPO set to end on Monday (December 16), with allotments scheduled for December 17, and a listing date on December 19.

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Furthermore, it is also noteworthy that this IPO is backed by the Rakesh Jhunjhunwala family, adding to its appeal.

ICICI Securities, Jefferies India, JM Financial, J.P. Morgan, and Nomura are the lead managers, while Link Intime India Private Ltd is the registrar.

Comparing Grey Market Premiums of both issue

In the grey market, IKS Health is showing a demand with a premium of Rs 375 per share, suggesting a potential listing price of Rs 1,704, a 28.22 per cent gain over the upper price band.

Meanwhile, International Gemmological Institute IPO, as of the recent trends shows a Rs 75 premium, pointing to a modest 17.99 per cent jump.

However, investors should note that grey market premiums are speculative and may not guarantee actual performance.

International Gemmological Institute Vs Inventurus Knowledge Solutions IPO: Which IPO Should You Choose?

International Gemmological Institute, founded in 1999, operates in the gem certification industry, and looks after the growing demand for authenticated diamonds and gemstones. On the other hand, Inventurus Knowledge Solutions is a company which provides health care solutions.

When comparing the two IPOs, both offer distinct opportunities for investors. The International Gemmological Institute IPO, with a price band of Rs 397 to Rs 417 per share, aims to raise Rs 4,225 crore. On the other hand, the Inventurus Knowledge Solutions IPO, priced between Rs 1,265 and Rs 1,329 per share, focuses on critical support services for healthcare companies.

“At the upper price band of Rs.1329, IKSL is available at a P/E of 54.6x (on FY25 Annualised), which appears fairly priced. Considering its asset light and scalable model with high margin operations, diversified product offerings, significant expansion potential post acquiring Aquity Holdings, we recommend Sub-scribe rating to the issue on a medium to long term basis,” added Geojit financial services in an IPO note.