Blackstone-backed International Gemmological Institute India has filed the draft prospectus for a ₹4,000-crore initial public offer, comprising a fresh issue of ₹1,250 crore and ₹2,750 crore as an offer-for-sale (OFS) by the private equity firm.
The issue values the company at $4 billion, up from the $550 million at which Blackstone had invested in May 2023. Blackstone had purchased 80 per cent stake from Fosun and 20 per cent from Lorie family.
IGI India is part of the IGI group — the world’s second largest independent certification and accreditation services provider for diamonds, studded jewelry, and coloured stones — with a third of the global market share. Most of its revenue and profits come from India.
Fund utilisation
The proceeds of the issue to the extent of ₹1,100 crore will be used to acquire IGI Belgium group and IGI Netherlands from the promoter ( Blackstone). According to the draft prospectus, IGI India is responsible for the operation of the IGI business in India and Türkiye. Blackstone holds the entire stake of IGI Belgium and IGI Netherlands, which, together with their subsidiaries, are responsible for operation of the IGI business outside of India and Türkiye.
After the acquisition, IGI India will become the 100 per cent shareholder of IGI Belgium and IGI Netherlands and will be responsible for operation of the IGI business globally.
The acquisition price is based on an enterprise value of $163 million.
In calendar 2023, IGI reported a revenue of ₹638.5 crore compared to ₹491 crore the year before. Net profit in 2023 was ₹325 crore ( ₹242 crore).