Shares of the International Gemmological Institute (India) will be listed at the bourses today. The company has fixed the IPO price at ₹417, at the upper end of the price band ₹397-417.
The ₹4,225-crore IPO was subscribed 35.48 times The offer from the Blackstone-backed diamond grading firm, consists of a fresh issue worth ₹1,475 crore and an Offer-for-Sale (OFS) for ₹2,750 crore by promoter BCP Asia II TopCo Pte Ltd, an affiliate of Blackstone.
According to the market buzz, the stock is likely to list with a premium of about 35-40 per cent.
The company has reserved 75 per cent of the issue size for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors. Investors can place bids starting with a minimum of 35 shares and in multiples of 35 thereafter
While the QIB portion was subscribed 48 times, the retail investors’ portion got subscribed 11.77 times and NIIs 26.09 times. The employees quota saw bidding for 21.79 times.
Ahead of the IPO launch, the company mobilised ₹1,900 crore from anchor investors by allotting 4.56 crore equity shares to 68 funds at ₹417 apiece. Some of the marquee investors include the Government of Singapore, ICICI Prudential Mutual Fund, Axis Mutual Fund, Abu Dhabi Investment Authority, Nomura, SBI Life Insurance and SBI General Insurance.
The company proposes to use the proceeds from the fresh issue to acquire IGI Belgium Group and IGI Netherlands Group from the promoter and for general corporate purposes.
International Gemmological Institute (India) Ltd provides services related to the certification and accreditation of natural diamonds, laboratory-grown diamonds, studded jewellery, and coloured stones.
IGI is the world’s second-largest independent certification and accreditation services provider based on revenue for CY2023 among global peers for diamonds, studded jewellery and coloured stones certifications, with a global market share of approximately 33 per cent, according to the Redseer Report.
Axis Capital, Kotak Mahindra Capital Company, Morgan Stanley India Company, and SBI Capital Markets are the book-running lead managers on the issue.
