International Gemmological Institute IPO: Rs 4225 Crore Issue Opens on 13 December
International Gemmological Institute IPO
International Gemmological Institute IPO: ₹4,225 Crore Issue Set to Open on December 13, Price Band to Be Revealed
The upcoming Initial Public Offering (IPO) of the International Gemmological Institute (IGI India) is one of the most anticipated public issues in the Indian market.
IGI India, backed by global private equity giant Blackstone, plans to raise ₹4,225 crore through this public offering.
The IPO is expected to open for subscription on December 13, 2024, and is anticipated to attract significant interest from both institutional and retail investors.
In a key development, the price band for the IPO will be announced on December 9, 2024, generating anticipation as investors look forward to more details about the offering.
The IPO will be a combination of fresh share issuance and an offer for sale by the promoter. The fresh issuance of shares will amount to ₹1,475 crore, while the offer for sale (OFS) will include ₹2,750 crore worth of shares by the promoter, BCP Asia II TopCo Pte.
These funds will be raised to further support IGI India’s expansion plans and to help finance strategic acquisitions.
The issue will be available for subscription from December 13 and will close on December 17, 2024. Meanwhile, anchor investors can place their bids a day before, on December 12.
If the IPO proceeds as planned, IGI India’s shares are expected to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on December 20, 2024.
A number of prestigious financial institutions are acting as the book-running lead managers for this issue, including Axis Capital, Kotak Mahindra Capital Company, Morgan Stanley India, and SBI Capital Markets.
These entities bring years of experience and expertise to manage what is expected to be one of the most significant IPOs in the Indian capital markets this year.
What Is IGI India?
The International Gemmological Institute (IGI) is a prominent name in the global gemmology and certification industry. Founded in 1975 in Antwerp, Belgium, IGI has grown to become one of the world’s leading authorities in the certification of diamonds, coloured stones, and fine jewellery.
IGI India, a subsidiary of the global institute, offers a wide range of services, including gemstone certification, diamond grading, and educational programs aimed at training professionals in the gemmology and jewellery sectors.
The company’s expertise and credibility in the certification space have made IGI India a trusted name among consumers and industry players alike.
The organization’s certification services are used by major jewellery brands, manufacturers, and retailers who rely on IGI’s rigorous grading standards for diamonds and gemstones.
Additionally, IGI offers specialized services for the certification of lab-grown diamonds, which is a rapidly growing segment in the global diamond industry.
IGI India is also known for its comprehensive educational programs, which train individuals to become skilled gemmologists and jewellery professionals.
These programs are an important part of the company’s business, providing both theoretical knowledge and practical training to aspiring professionals in the field. The company’s reach spans across the country, making it a leader in its segment within India.
Details of the IPO Offer
The total offer size of ₹4,225 crore is split between the issuance of fresh shares and an offer for sale by the promoter.
Specifically, ₹1,475 crore will be raised through the issuance of new equity shares, while ₹2,750 crore will be offered by the promoter, BCP Asia II TopCo Pte, as part of the offer for sale.
The funds raised from the fresh share issuance will be used to fund the company’s strategic growth initiatives, including acquisitions, expansion plans, and general corporate purposes.
The IPO will be structured with specific allocations for different categories of investors:
- 75% of the net issue will be reserved for Qualified Institutional Buyers (QIBs), such as mutual funds, pension funds, insurance companies, and other large institutional investors.
- 15% of the issue will be allocated to Non-Institutional Investors (NIIs), including high-net-worth individuals and corporate investors.
- 10% of the offer will be earmarked for retail investors, allowing individual investors to participate in the offering.
Additionally, there is a special reservation of shares worth ₹2 crore set aside for IGI employees, enabling them to participate in the IPO on favorable terms.
This is a common feature in many IPOs, offering employees an opportunity to benefit from the company’s growth post-listing.
Use of IPO Proceeds
The funds raised through the IPO will be used primarily for two main purposes.
- Acquisition of IGI Belgium and IGI Netherlands: A significant portion of the fresh issue proceeds—₹1,300 crore—will be utilized to acquire the IGI Belgium Group and IGI Netherlands Group from the promoter, BCP Asia II TopCo Pte. This strategic acquisition will expand IGI India’s global footprint and strengthen its position as a leader in the certification space. By acquiring these overseas entities, IGI India aims to enhance its service offerings and market reach, especially in key international markets.
- General Corporate Purposes: The remaining funds raised will be used for general corporate purposes, including further business expansion, technology upgrades, and working capital requirements. As the demand for certified gemstones and diamonds continues to grow, IGI India aims to bolster its infrastructure and service capabilities to meet this demand effectively. The company is also expected to invest in developing and expanding its educational and training programs, a critical part of its long-term strategy.
Why Invest in IGI India?
The gemmology and jewellery certification industry is experiencing strong growth globally, driven by the increasing demand for transparency and authenticity in the diamond and gemstone markets.
IGI India’s established reputation, backed by the global credibility of IGI, positions the company well for future growth in this expanding sector.
With a wide range of services catering to both the certification of natural and lab-grown diamonds, as well as gemstones, IGI India stands out as a leader in the field.
Additionally, its educational programs ensure a steady supply of skilled professionals in the industry, contributing to the company’s long-term growth prospects.
The IPO represents a significant opportunity for investors to gain exposure to this high-growth sector.
With the backing of Blackstone and an experienced management team, IGI India is well poised to capture further market share and expand its global presence.
Final Remarks
The IGI India IPO, which is set to open on December 13, promises to be a significant event in the Indian capital markets.
With a strong business model, a credible reputation in the gemmological industry, and the strategic backing of Blackstone, IGI India is well-positioned for future growth.
Investors will be eagerly awaiting the price band announcement on December 9 and will have the opportunity to subscribe to this high-profile IPO starting December 13.
The IPO’s successful listing is expected to enhance IGI India’s financial position, provide funds for strategic acquisitions, and further cement its position as a leader in the global gemmological certification space.
