Blackstone-Backed IGI IPO Receives 36% Subscription on Day 2: Employee Portion Sees Strong Demand

The IPO of Blackstone-backed diamond grading firm International Gemmological Institute (India) Ltd (IGI) has garnered a 36% subscription as of 12:15 pm on December 16, marking the second day of bidding. The offering received bids for 2.19 crore shares out of the 5.85 crore shares available.

The employee portion of the IPO has been the most popular, with a 4.57 times oversubscription so far. The retail investor segment saw 1.45 times subscription, while the non-institutional investor portion received 39% subscription. However, the Qualified Institutional Buyer (QIB) portion has shown minimal activity, with just 19,845 shares being subscribed out of the 3.19 crore shares on offer.

The IPO, which opened for subscription on December 13 and will close on December 17, has a price band of ₹397 to ₹417 per share. The total issue size is ₹4,225 crore, consisting of a fresh issue of equity shares worth ₹1,475 crore and an Offer for Sale (OFS) of ₹2,750 crore from promoter BCP Asia II TopCo Pte Ltd, an affiliate of Blackstone.

Proceeds from the fresh issue are intended for the acquisition of IGI Belgium Group and IGI Netherlands Group from the promoter, as well as general corporate purposes. At the upper end of the price band, the company’s market capitalization is expected to exceed ₹18,000 crore.

IGI is the world’s second-largest independent certification provider for diamonds, studded jewelry, and colored stones, based on revenue for CY2023, holding a 33% global market share.

The IPO is reserved with 75% for QIBs, 15% for non-institutional investors, and 10% for retail investors. Bidding starts at a minimum of 35 shares, with further bids in multiples of 35.

Shares of IGI are expected to be listed on the BSE and NSE on December 20.