International Gemmological Institute IPO enters day 2
The IPO of International Gemmological Institute (India) enters day two with a modest response.
The ₹4,225-crore IPO opened on Friday for the public at ₹397-417 price band, and was subscribed just 17 per cent or 0.17 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.
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 QIBs remained muted, the retail investors’ portion was subscribed 0.70 time. NIIs, too, remained lukewarm, with the quota allotted to them subscribed 0.14 times. However, the employees’ quota was more promising with 2.35 times subscription.
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, etc.
The IPO concludes on Tuesday.
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.
The shares of the company are expected to be listed on the BSE and NSE on December 20
