International Gemological Institute IPO booked 10% so far: Check day 1 subscription, price band and more

The initial public offering of International Gemological Institute (India) Ltd saw a lukewarm response from investors after launch on Friday, December13. The mainboard issue was booked only 10% till 1:45 pm, as per the data available with the stock exchanges.

The Blackstone-backed diamond grading company aims to raise ₹ 4,225 crore from the primary market through its maiden share sale. The issue will close for bidding on Tuesday, December 17.

On the first day of subscription, the IPO received bids for more than 57.2 lakh shares against 5.85 crore shares on offer.

Retail investors led the bidding by subscribing their quota by 43%. The retail investors applied for 45.44 lakh shares against more than 1.06 crore shares reserved for the category. The Non-Institutional Investors (NIIs) placed bids for over 10.90 lakh shares against 1.59 crore shares set aside for them. The NIIs booked their category 7%.

No bid has been received from Qualified Institutional Buyers (QIBs) against the allocation of over 3.19 crore shares.

The employees of the company applied for 85,505 shares against 55,865 shares set aside for them, subscribing their quota by 1.53 times.

Here’s a look at all the key details about the mainboard issue for the investors interested in applying for the shares of International Gemological Institute India Ltd.

International Gemological raise ₹1,900 crore from anchor investors

Ahead of the launch of its IPO, International Gemological raised a total of ₹1,900 crore from anchor investors.

The company allotted 4.56 crore equity shares to 68 fund schemes at a price of ₹417 apiece – the upper-end of the price band.

Government of Singapore, Axis Mutual Fund, ICICI Prudential Mutual Fund, Nomura, Abu Dhabi Investment Authority, SBI Life Insurance and SBI General Insurance are among the leading anchor investors.

International Gemological IPO price band and other details

International Gemological Institute IPO comprises a fresh issue of 3.54 crore shares, worth up to ₹1,475 crore, and an offer-for-sale (OFS) of 6.59 crore shares, aggregating to ₹2,750 crore.

The company has fixed the price band at ₹397 to ₹417 per share for the IPO. The minimum lot size is 35 shares for retail investors, amounting to an investment of ₹14,595 per share.

Axis Capital Limited, Morgan Stanley India Company Pvt Ltd, Kotak Mahindra Capital Company Limited, and SBI Capital Markets Limited are the book-running lead managers. Kfin Technologies Limited is the registrar for the issue.

International Gemological IPO key dates

The IPO allotment status is expected to be finalised on Wednesday, December 18. Refunds will be issued on December 19 and the allottees will also receive shares in the Demat accounts the same day.

The company has proposed to list shares on BSE and NSE on Friday, December 20.

About International Gemological Institute India and use of IPO proceeds

International Gemological a leading independent certification and accreditation services provider for natural diamonds, labgrown diamonds, studded jewellery and coloured stones. According to a Redseer Report, the company has a global market share of 33 per cent in the certification segment.

The company has proposed to utilise ₹1,300 crore of IPO proceeds from the fresh issue to acquire IGI Belgium Group and IGI Netherlands Group from its promoter, BCP Asia II TopCo Pte. Ltd.

The company reported revenue of ₹648.66 crore in the year ended on December 31, 2023, compared to ₹499.33 crore in the preceding year. The company’s net profit for the year ended December 2023 stood at ₹324.74 crore compared to ₹241.76 crore in the preceding year.

The company’s revenue stood at ₹619.49 crore for the period ended September 2024, while its net profit stood at ₹326.06 crore.