Blackstone-owned IGI files for Rs 40 billion IPO amid rising lab-grown diamond demand 

The firm’s IPO is part of a broader trend of active listings in India’s stock market, which has seen over 150 companies raise more than $5 billion so far this year, according to LSEG data 

Bengaluru— International Gemmological Institute (IGI), a gemstone certification firm owned by Blackstone, has filed for an initial public offering (IPO) seeking to raise up to Rs 40 billion (approximately $477 million). This move aims to capitalize on the surging demand for lab-grown diamonds in India and the current vibrant IPO market. 

IGI plans to issue new shares worth up to Rs 12.5 billion, while Blackstone will sell shares valued at up to Rs 27.5 billion. The IPO comes at a time when India, along with China and the U.S., represents 74% of the global jewellery market, according to IGI’s analysis based on data from the World Bank and RedSeer, a Bangalore-based consultancy. 

Originally founded in Belgium 50 years ago, IGI now generates the majority of its revenue and profits from India, as previously reported by a reputed news wire service. The firm’s IPO is part of a broader trend of active listings in India’s stock market, which has seen over 150 companies raise more than $5 billion so far this year, according to LSEG data.. 

The IPO is being managed by Axis Capital, Kotak Mahindra Capital Company, Morgan Stanley India, and SBI Capital Markets. Blackstone intends to use the proceeds for acquisition-related payments for IGI’s operations in Belgium and the Netherlands, as detailed in the draft papers. 

International Gemmological Institute (IGI), a global certification provider for lab grown and natural diamonds, was acquired by Blackstone in May 2023 for around $550 million from Chinese investment firm Fosun and Roland Lowrie of the founding family. 

However, as per the current structure, only the India arm and the Turkey arm of IGI are housed under the entity that has filed for the IPO and the overseas businesses – IGI Belgium and IGI Netherlands – are separately owned by the Blackstone entity – BCP ASIA II TOPCO PTE. LTD. 

IGI’s public float follows successful IPOs by notable companies such as FirstCry, Ola Electric, Allied Blenders, and Emcure Pharmaceuticals. Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, anticipates strong interest from both public and institutional investors, highlighting IGI’s distinctive business model amid the surge of recent IPO successes. 

Retail Jeweller India News