Blackstone-backed IGI to raise ₹4,225 cr at price band of ₹397-417; IPO to open on Dec 13

Blackstone-backed International Gemological Institute (IGI) is set to launch its initial public offering (IPO) on December 13, planning to raise ₹4,225 crore at price band of ₹397-417 per share. The anchor book will open for a day on December 12, while the three-day IPO will close on December 17. The tentative date for listing of shares on the stock exchanges is December 20.

The IPO of IGI India, a globally recognised diamond, colored stone and jewellery certification organisation, is a combination of fresh issue of ₹1,475 crore and offer for sale of ₹2,750 crore by promoter BCP Asia II TopCo Pte. BCP Asia II Topco II Pte., an entity of U.S.-based private equity firm Blackstone, currently holds 100% stake in the company.

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

“We are incredibly proud to support IGI on this next chapter of growth. This marks a continuation of our business builder efforts to strengthen IGI's presence and operations by helping the company expand its reach and offerings and become a one-stop provider of certification. When we first invested in the company two years ago, we knew it had tremendous potential under Tehmasp’s stewardship with the right resources and access. We will continue to partner with the management team and remain heavily invested in IGI, cementing its market leading position,” says Amit Dixit, Head of Private Equity Asia, Blackstone.

Tehmasp Printer, Managing Director and Chief Executive Officer, IGI said: “This is a tremendous milestone for IGI. From Inception, our vision is to grow this business into global leadership. We have been the first movers in India. We have demonstrated strong expertise & innovation in an industry with enormous potential for growth. We are here with the backing of Blackstone and excited to take the 50 year old global company public in India.”

The company filed its draft papers on August 27, 2024, and it received an observation letter from the Securities and Exchange Board of India (Sebi) on November 28.

As per the RHP filed with the SEBI, the company has reserved 75% of the issue for qualified institutional placements (QIPs), 15% for non-institutional investors (NIIs), and remaining 10% for retail investors. The company has reserved ₹2 crore worth of shares for its employees.

Incorporated in February 1999, the company filed its IPO papers with the capital market regulator Securities and Exchange Board of India (SEBI) on August 27, 2024, and it received approval on November 28. It is one of the world’s largest independent grading and accreditation services providers for both natural and laboratory grown diamond grading. For the quarter ended September 30, 2024, IGI posted profit after tax of ₹326.06 crore and total revenue of ₹619.49.

The primary market is going to be action-packed this week as 11 companies are set to launch their initial public offerings (IPOs), including five from the mainboard segment, looking to collectively raise around ₹18,500 crore. The list includes Vishal Mega Mart, Sai Life Sciences, Mobikwik, Inventurus Knowledge Solutions, and IGI.

Supermarket chain operator Vishal Mega Mart aims to garner ₹8,000 crore via IPO, which is completely an offer for sale (OFS) of 102.56 crore shares by promoter entity. Fintech firm MobiKwik eyes to raise ₹572 crore by issuing 2.05 crore fresh equities. On the other hand, the issue of Sai Life Sciences is a combination of fresh issue worth ₹950 crore and offer for sale worth ₹2,092.62 crore. Rekha Rakesh Jhunjhunwala-backed Inventurus Knowledge Solutions Ltd. has proposed to raise ₹2,500 crore, which is entirely an OFS.

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