Blackstone-owned gemstone certification firm IGI shares list at 22% premium over IPO price

Shares of Blackstone-owned International Gemmological Institute (IGI) India made a solid debut on domestic bourses on Friday, in sync with positive broader market. The shares of gemstone certification firm IGI listed at ₹504.85 on the Bombay Stock Exchange (BSE), a premium of 21% over the initial public offering (IPO) price of ₹417 per share. On the NSE, the stock listed 22.3% higher at ₹510 per share against the issue piece.

The listing was below market expectations as the stock was trading at a premium of 38% over the issue price in the grey market. Post the closure of the IPO, the grey market premium (GMP) spiked to ₹159 from ₹90 on December 17 as the issue received robust response from investors.

The ₹4,225 crore IPO of IGI, which opened between December 13-17, was subscribed 35.48 times amid good responses from all three categories of investors. The portion reserved for retail investor was subscribed 11.77 times, while the qualified institutional buyers and non-institutional investor quotas were booked 48.11 times and 26.09 times, respectively.

The public issue offered at a price band of ₹397-417 per share was a combination of fresh issue of 3.54 crore shares worth ₹1,475 crore and offer for sale (OFS) of 6.59 crore shares aggregating to ₹2,750 crore. The lot size was 35 and in multiple thereafter.

Under the OFS, promoter BCP Asia II TopCo Pte was the only seller. BCP Asia II Topco II Pte., an entity of U.S.-based private equity firm Blackstone, currently holds 100% stake in the company.

A day ahead of the IPO, the company raised ₹1,900.34 crore from 68 institutional investors via anchor book on December 12.  

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.

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.

Incorporated in February 1999, International Gemmological Institute India 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.

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