International Gemmological Institute IPO sees full subscription on final day led by employees, retail – CNBC TV18



The initial public offering (IPO) of Blackstone-backed diamond grading firm International Gemmological Institute (India) Ltd. was fully subscribed on the final day of bidding on Tuesday, December 17. The issue was booked 1.4 times at 11:15 AM led by a healthy response from the retail investors and existing employees.

Company Value Change %Change

Overall, investors submitted bids for 8.21 crore shares against the 5.85 crore shares offered, according to data available on the stock exchanges. By the end of the second day, the issue had been subscribed 72%.

The retail portion of the public issue was booked over 4.03 times with bids for 4.28 crore shares against 1.06 crore shares offered.

The employee category saw the highest demand, with 10.41 times subscription. Employees bid for over 5.81 lakh shares against the offered 55,865 shares.

The non-institutional investor (NII) category of IGI IPO received bids for 3.58 crore shares against the available 1.59 crore shares, resulting in an over subscription of 2.25 times.

However, the Qualified Institutional Buyer (QIB) segment saw limited traction, with just 9% subscription for the 3.19 crore shares allocated to this category.

International Gemmological Institute IPO, priced between ₹397 and ₹417 per share, opened for subscription on December 13 and will close on December 17.

The IPO has reserved 75% of the issue for qualified institutional buyers (QIBs), 15% for non-institutional investors, and 10% for retail investors. Retail investors could bid with a minimum of 35 shares, resulting in an initial investment of ₹14,595 per application.

International Gemmological Institute IPO GMP

The grey market premium (GMP) for the International Gemmological Institute IPO was reported at ₹125 per share on Tuesday. Based on this GMP, the shares could list at ₹542, reflecting a premium of nearly 30% over the issue price of ₹417 per share.

The GMP is only speculative and does not entirely reflect the actual listing price of the company’s shares.

International Gemmological Institute IPO: Key details

The ₹ 4,225-crore IPO consists of a fresh equity issue worth ₹1,475 crore and an Offer-for-Sale (OFS) of ₹2,750 crore by the promoter, BCP Asia II TopCo Pte Ltd, a Blackstone affiliate.

Proceeds from the fresh issue will be used for acquiring IGI Belgium Group and IGI Netherlands Group from the promoter, as well as for general corporate purposes.

International Gemmological Institute (India) Ltd offers certification and accreditation services for natural diamonds, laboratory-grown diamonds, studded jewellery, and coloured stones. It is the world’s second-largest independent certification provider in this segment, with a global market share of approximately 33% in CY2023, according to a Redseer Report.

The company’s shares are slated for listing on the BSE and NSE on December 20.


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