Blackstone-backed International Gemmological Institute files draft papers to raise Rs 4,000 crore via IPO

International Gemmological Institute India IPO

Blackstone-owned International Gemmological Institute (India) has filed preliminary papers with the capital markets regulator SEBI to raise Rs 4,000 crore through an initial public offering.

The IPO comprises fresh issuance of equity shares worth Rs 1,250 crore, and an offer-for-sale of shares worth Rs 2,750 crore by the sole promoter BCP Asia II TopCo Pte Ltd, an affiliate of funds managed and advised by affiliates of Blackstone.

IGI India provides services of the certification and accreditation of natural diamonds, laboratory grown diamonds, studded jewellery and coloured stones as well as the offering of educational programs.

IGI, the largest independent certification and accreditation services provider in India, holding approximately 50 percent market share in terms of number of certifications of diamonds, studded jewellery and coloured stones for CY23, intends to spend Rs 1,100 crore out of the net fresh issue proceeds for the acquisition of IGI Belgium Group and IGI Netherlands Group from the promoter BCP Asia II TopCo Pte Ltd, and the remaining funds for general corporate purposes.

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BCP Asia II TopCo Pte Ltd is the 100 percent shareholder of IGI Belgium and IGI Netherlands, which together with their respective subsidiaries, are responsible for operation of the IGI business outside of India and Turkey.

India is the world’s largest center for cutting and polishing diamonds accounting for approximately 95 percent of the world’s total polished diamonds in volume terms in CY23.

IGI India, which does not have comparable peer among listed entities, has recorded net profit at Rs 324.7 crore for the financial year ended December 2023, growing 34.3 percent over the profit of Rs 241.76 crore in the previous year, with strong topline as well as operating performance.

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The Mumbai-based company follows calendar year (January-December) as its financial year.

Revenue from operations for the year 2023 increased by 30 percent on-year to Rs 638.5 crore. EBITDA (earnings before interest, tax, depreciation and amortisation) during the year grew by 34.3 percent to Rs 450.1 crore with margin expanding by 220 bps to 70.5 percent compared to previous year.

For the first quarter ended March 2024, profit stood at Rs 124.8 crore on revenue of Rs 209.1 crore.

Axis Capital, Kotak Mahindra Capital Company, Morgan Stanley India Company, and SBI Capital Markets are the book running lead managers to the issue.