The International Gemmological Institute (IGI) India, owned by Blackstone, has filed preliminary papers with the Securities and Exchange Board of India (SEBI) to raise ₹4,000 crore through an initial public offering (IPO).
The IPO will consist of a fresh issuance of equity shares worth ₹1,250 crore and an offer-for-sale of shares valued at ₹2,750 crore by the sole promoter, BCP Asia II TopCo Pte Ltd, an affiliate of funds managed by Blackstone.
IGI India specializes in the certification and accreditation of natural and laboratory-grown diamonds, studded jewelry, and colored stones, as well as offering educational programs. As the largest independent certification provider in India, IGI holds approximately 50 percent of the market share in diamond and jewelry certifications for 2023. The company plans to use ₹1,100 crore of the net proceeds from the fresh issue to acquire IGI Belgium Group and IGI Netherlands Group from BCP Asia II TopCo Pte Ltd, with the remaining funds allocated for general corporate purposes.
BCP Asia II TopCo Pte Ltd fully owns IGI Belgium and IGI Netherlands, which operate the IGI business outside of India and Turkey.
In 2023, IGI India, based in Mumbai, reported a net profit of ₹324.7 crore, a 34.3 percent increase from ₹241.76 crore in the previous year. Revenue from operations rose by 30 percent to ₹638.5 crore, and EBITDA grew by 34.3 percent to ₹450.1 crore, with a margin improvement of 220 basis points to 70.5 percent. For Q1 2024, the company reported a profit of ₹124.8 crore on revenue of ₹209.1 crore.
Axis Capital, Kotak Mahindra Capital Company, Morgan Stanley India Company, and SBI Capital Markets are serving as the book running lead managers for the IPO.
