IGI Files for $477 Million IPO to Capitalise on Growing Lab-Grown Diamond Market

The International Gemological Institute (IGI), owned by private equity firm Blackstone, has filed for an initial public offering (IPO) valued at approximately INR 40 billion (USD 477 million). 

IGI aims to capitalise on the rising demand for lab-grown diamonds, particularly in India. The IPO will consist of newly issued shares worth INR 12.5 billion, while Blackstone will sell shares worth INR 27.5 billion.

Strategic Market Position and Growth Opportunities

Founded in Belgium, IGI now generates a large portion of its revenue and profits from India, where it has established itself as a key player in the diamond certification industry. Data from IGI and consultancy firm RedSeer indicates that India, China, and the United States account for approximately 74% of the global jewellery market. This market position likely influenced the decision to pursue an IPO.

The IPO is taking place during a period of strong activity in India’s stock market, where over 150 companies have raised more than USD 5 billion in 2023. Recent successful listings include FirstCry, Ola Electric, and Emcure Pharmaceuticals.

IPO Breakdown and Use of Proceeds

The IPO will allocate 75% of shares to qualified institutional buyers (QIBs), 15% to non-institutional investors, and 10% to retail investors. The offering values IGI at approximately USD 3.5 billion, reflecting its role in the certification industry.

Proceeds from Blackstone’s share sale will finance payments related to the acquisition of IGI Belgium and IGI Netherlands, according to the company’s filings, consolidating IGI’s European operations.