The International Gemmological Institute (IGI) IPO, which opened for subscription on Friday, December 13, witnessed strong investor participation as it entered its third day. The IPO, valued at ₹4,225 crore, combines a fresh issue and an offer-for-sale (OFS), and will conclude on Tuesday, December 17.
Subscription Status as of Day 2
By the end of Day 2, the IGI IPO was 72% subscribed, showcasing significant traction among different investor segments:
- Qualified Institutional Buyers (QIBs): Subscribed 9%
- Non-Institutional Investors (NII): Subscribed 83%
- Retail Investors: Oversubscribed their quota by 2.44 times
- Employees: Subscribed 6.70 times their allocated shares
The strong performance in the retail and NII categories highlights growing confidence in the company’s prospects, particularly in the jewelry and gemstone certification market.
IPO Details and Pricing
The price band for the IGI IPO has been fixed between ₹397 to ₹417 per share, with a minimum lot size of 13 shares.
The offering comprises:
- Fresh Issue: Equity shares worth ₹1,475 crore
- Offer-for-Sale (OFS): Equity shares worth ₹2,750 crore being divested by BCP Asia II TopCo Pte Ltd, a Blackstone affiliate.
Ahead of the public launch, IGI successfully raised ₹1,900 crore from anchor investors on Thursday.
Use of Proceeds
The proceeds from the fresh issue will primarily be utilized for:
- Acquiring IGI Belgium Group and IGI Netherlands Group from the promoter.
- Supporting general corporate purposes to drive growth and strengthen its operational base.
Business Overview
International Gemmological Institute (India) Ltd, a globally renowned entity in the jewelry certification industry, specializes in providing verification services for:
- Natural Diamonds
- Lab-Grown Diamonds
- Studded Jewelry
- Colored Stones
With a robust reputation and trust in the jewelry sector, IGI serves major domestic and international markets.
Market Sentiment and GMP
The IGI IPO has garnered significant attention in the grey market, reflecting strong investor sentiment. Grey Market Premium (GMP), an informal indicator, remains positive and continues to fluctuate based on subscription updates.
Conclusion
The International Gemmological Institute IPO’s steady subscription numbers, particularly the oversubscription in the retail and employee categories, point to an encouraging performance. With institutional investors expected to contribute significantly on the final day, market analysts remain optimistic about the IPO's successful closure on December 17.
