Blackstone-owned gemstone certification firm IGI files for $477 million IPO
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Blackstone-owned International Gemmological Institute (IGI) filed draft papers for an initial public offering worth up to 40 billion rupees (about $477 million), to capitalise on the booming demand for lab-grown diamonds in India amid a red-hot IPO market.
IGI, which grades diamonds, gemstones and jewellery, said it will issue new shares worth up to 12.5 billion rupees, whereas Blackstone will sell shares worth up to 27.5 billion rupees.
India along with China and the U.S. contribute to 74% of the global jewellery market share, as per IGI's analysis, citing World Bank and RedSeer, a Bangalore-based consultancy firm.
While founded in Belgium 50 years ago, IGI derives majority of its revenue and profits from India today, Reuters had reported earlier this year.
IGI's public float also comes at a time when more than 150 companies have raised over $5 billion on India's highly active stock market so far this year, per LSEG data at July-end.
Its IPO follows successful listings by FirstCry, Ola Electric, Allied Blenders and Emcure Pharmaceuticals.
IGI's business model stands uniquely among other players whose IPOs have soared, and is expected to garner good response from public and institutional investors, said Kranthi Bathini, director of equity strategy at WealthMills Securities.
Axis Capital, Kotak Mahindra Capital Company, Morgan Stanley India and SBI Capital Markets are the bookrunning lead managers of the IPO.
Blackstone will use the proceeds for payments related to acquisitions in IGI Belgium and IGI Netherlands, according to the draft papers.
($1 = 83.9150 Indian rupees)
