International Gemmological Institute IPO sees 72% subscription on Day 2; retail, employees lead

International Gemmological Institute IPO sees 37% subscription on Day 2 so far; retail, employees lead (Photo via IGI-worldwide on LinkedIn)

Blackstone-backed diamond grading firm International Gemmological Institute (India) Ltd's IPO saw 72% subscription on December 16, the second day of bidding.

The IPO received bids for 4.24 crore shares as against the 5.85 crore shares on offer.

The employee portion got booked the most so far with 6.69 times bids. The retail portion saw 2.44 times subscription while the non-institutional investor portion saw 83% subscription by end of day 2 (December 16)

The Qualified Institutional Buyer (QIB) portion barely saw any momentum as yet with only 9% subscription for the 3.19 crore shares on offer.

The issue, with a price band of Rs 397 to Rs 417 per share, opened for subscription on December 13 and will conclude on December 17.

The Rs 4,225-crore IPO is a combination of a fresh issue of equity shares worth Rs 1,475 crore and an Offer-for-Sale (OFS) valued at Rs 2,750 crore by promoter BCP Asia II TopCo Pte Ltd, an affiliate of Blackstone.

The company proposes to utilise the proceeds from the fresh issue for the acquisition of IGI Belgium Group and IGI Netherlands Group from promoter; and general corporate purposes.

At the upper-end of the price band, the company's market capitalisation has been pegged at over Rs 18,000 crore.

International Gemmological Institute (India) Ltd provides services related to the certification and accreditation of natural diamonds, laboratory grown diamonds, studded jewellery and coloured stones.

IGI is the world's second largest independent certification and accreditation services provider based on revenue for CY2023 among global peers for diamonds, studded jewellery and coloured stones certifications, with a global market share of approximately 33 per cent, according to the Redseer Report.

The company said that 75 per cent of the issue size has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.

Investors can place bids starting with a minimum of 35 shares and in multiples of 35 thereafter.

The shares of the company are expected to be listed on the BSE and NSE on December 20.

With inputs from PTI