International Gemmological Institute IPO: Blackstone-backed firm raises ₹1,900 crore from anchor investors | Stock Market News

International Gemmological Institute Limited raised ₹1,900 crore from anchor investors ahead of its public issue, according to an exchange filing by the company on Thursday, December 12.

The company has allocated 4,55,71,942 or 4.55 crore equity shares to the anchor investors at an allocation price of ₹417 per share, with a face value of ₹2 per apiece. 

The anchor investor pool for the International Gemmological Institute’s public issue comprises the Government of Singapore, ICICI Prudential Mutual Fund, Nomura Holdings, Abu Dhabi Investment Authority, Government Pension Fund Global, Axis Mutual Fund, Fidelity Investment Trust, Quant Mutual Fund, SBI Life Insurance, Whiteoak Capital, and Motilal Oswal were among other top investors.

According to the exchange filing by the company on Thursday, the Government of Singapore at 9.43 per cent, Nomura Group at 5.26 per cent, Abu Dhabi Investment Authority at 5.26 per cent, Government Pension Fund Global at 5.26 per cent, and Whiteoak Capital at 3.42 per cent were among the top investors with largest allocation in the anchor round. 

The gemstone, diamonds and jewellery certifier also said that 33.41 per cent of the allocation to anchor investors was allocated to nine domestic mutual funds through a total of 33 schemes.

“We believe that the IPO is fairly priced and recommend a ‘Subscribe-Long term’ rating to the IPO,” said the analysts at Anand Rathi.

The company also is a global market leader and first mover in providing certification services for the fast-growing laboratory-grown diamond industry, according to Anand Rathi’s IPO report.

International Gemmological Institute IPO GMP

As of December 13, the International Gemmological Institute IPO’s grey market premium (GMP) is at ₹75 per share. With the upper price band at ₹417, the public issue is expected to be listed at ₹492 per share, a premium of 17.99 per cent, according to Investorgain.com.

Grey market premium (GMP) is an indicator of investors’ willingness to pay more for a public issue. The GMP dropped to ₹75 on Thursday, compared to its earlier level of ₹131 on Wednesday. 

International Gemmological Institute IPO Details 

The ₹4,000 crore IPO of International Gemmological Institute is offering a combination of fresh issues worth up to ₹1,475 crore and offer-for-sale (OFS) up to ₹2,750 crore by BCP Asia II TopCo Pte. Ltd, the promoter of the jewellery certifier. 

“Our Company proposes to utilize a portion of the net proceeds towards acquiring 100 per cent of the share capital of IGI Belgium Group and IGI Netherlands Group from our promoter. Following the completion of the proposed acquisitions, our company will become the 100 per cent shareholder of IGI Belgium and IGI Netherlands, and will be responsible for operation of the IGI business globally,” according to the draft papers.

The company also disclosed that not more than 75 per cent of the public issue will be allocated to Qualified Institutional Buyers (QIBs), not more than 15 per cent will be allocated to the Non-Institutional Investors (NIIs), and 10 per cent will be available for retail investors, according to the draft papers.

Axis Capital Limited, Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited, and SBI Capital Markets Limited are the book-runners for the public issue, while KFin Technologies Limited is the registrar to the offer. 

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.