Editor’s Note
The International Gemmological Institute (IGI) has launched a major ₹4,225 crore IPO, with a price band of ₹397-417 per share. Strong demand and a high grey market premium suggest a potentially stellar market debut, with the company’s valuation expected to surpass ₹18,000 crore.
The International Gemmological Institute (IGI) has launched its ₹4,225 crore IPO, with a price band of ₹397-417 per share. Its market capitalization is expected to exceed ₹18,000 crore. Strong demand and a high grey market premium indicate a potentially stellar listing.
International Gemmological Institute (IGI) Limited is a leading company in diamond and jewelry certification. Its IPO subscription opened on December 13 and will close on December 17. The company has set a price band of ₹397-417 per share for the IPO, with a total offer size of ₹4,225 crore. If the IPO is fixed at the higher end of the price band, IGI’s market capitalization is likely to exceed ₹18,000 crore.
IGI, a leader in the certification of diamonds, colored stones, and jewelry, was the world’s second-largest independent certification provider by revenue in the 2023 calendar year. The company holds a global market share of approximately 33%, making it one of the key players in the industry.
The IGI IPO includes a fresh issue of ₹1,475 crore and an offer-for-sale (OFS) of ₹2,750 crore, which will come from BCP Asia II Topco Pte Ltd, an affiliate of Blackstone. The proceeds from this offer will be used to acquire the IGI Belgium Group and IGI Netherlands Group and to meet other corporate requirements.
The subscription status for the IGI IPO on the first day was 17%.
For today, the grey market premium for IGI shares is ₹95, indicating that investors are willing to pay more than the IPO price. Based on the upper limit of the IPO price band and the current premium, analysts estimate that IGI’s shares will list at ₹512 per share, which is 22.78% higher than the upper IPO price of ₹417.
Total Size: ₹4,225 crore
Price Band: ₹397-417 per share
Fresh Issue Size: ₹1,475 crore
Offer-for-Sale: ₹2,750 crore
Use of Proceeds: Acquisition of IGI Belgium and IGI Netherlands, for corporate purposes
Lead Managers: Axis Capital, Kotak Mahindra Capital, Morgan Stanley India, SBI Capital Markets
Registrar: Kfin Technologies Limited
The IGI IPO is a great opportunity for investors as it offers a chance to be part of a leading global company. With strong demand and positive signals from the grey market, this IPO is heading towards a major success.