MUMBAI: The International Gemmological Institute India (IGI) has announced a price band of Rs 397-417 per share for its Rs 4,225-crore initial public offering (IPO), which is set to open on December 13. The offering comprises a fresh issue of equity shares worth Rs 1,475 crore and an offer for sale (OFS) amounting to Rs 2,750 crore by global private equity major Blackstone, which currently owns 100 percent of IGI's pre-issue shares.
Blackstone acquired IGI in May 2023 for $570 million from Chinese investment firm Fosun and Roland Lowrie of the founding family. The sale will see Blackstone dilute 23.5 percent of its pre-issue equity while retaining a 76.5 percent stake.
Amit Dixit, head of private equity at Blackstone Asia, confirmed the dilution but declined to specify a timeline for meeting the Securities and Exchange Board of India’s (SEBI) requirement of 25 percent public float in listed entities.
IGI, founded in 1975 in Antwerp, Belgium, is a global leader in diamond and gold jewelry certification. It holds a dominant position in the lab-grown diamond certification market, with a 65 percent share globally, and is the second-largest player in the overall diamond certification market with a 33 percent share. In India, it commands a 50 percent market share in diamond certification and is the leading jewelry certification provider, with 90 percent of jewelry chains utilizing its services.
The proceeds from the fresh issue will primarily be used to fund recent acquisitions in Belgium and the Netherlands, valued at approximately Rs 1,300 crore, with the remainder allocated for general corporate purposes. Following the IPO, IGI India will become the global holding company for the group, with the Belgian and Dutch acquisitions set to merge into IGI India.
Tehmasp Nariman Printer, IGI’s managing director and chief executive, said that company's robust growth. Between 2020 and 2023, IGI India’s revenue grew at an annual rate of 32.3 percent, generating Rs 450 crore in operating profit. For the nine months ending September 2024, IGI reported Rs 788 crore in revenue and Rs 429 crore in operating profit.
With India contributing 89 percent of IGI’s 2024 global revenue—amounting to Rs 631 crore out of Rs 898 crore—the country remains pivotal to IGI's operations. Post-merger, India is expected to account for 70 percent of the group’s global revenue.
The global diamond industry, currently valued at $100 billion, is projected to grow to $140 billion by 2028, with the certification market expected to expand from $650 million in 2023 to $1 billion over the same period. IGI operates 20 of its 31 labs, nine of its 18 certification schools, and 12 factory labs in India, underscoring the country’s strategic importance to its business.
The IPO marks the tenth offering by a Blackstone portfolio company this year. Mukesh Mehta, senior managing director at Blackstone India, emphasized IGI’s leadership in lab-grown diamond certification and its unparalleled position in jewelry certification in India