International Gemmological Institute lists at 22% premium

Shares of International Gemmological Institute listed at a 22.3 per cent premium to its issue price, at ₹510 on the NSE, and went to an intra-day high of ₹525, but couldn’t sustain its momentum on a day when the markets were seeing a sell-off, and ended 8.2 per cent down from its listing price, at ₹468.45, but still a gain of 13 per cent over the issue price.

On the first day of listing it ended with a market capitalisation of ₹20,244.5 crore. “In Hindi, ‘Blackstone’ translates to “kaala patthar,” and it is truly fitting that we have found our Kohinoor in IGI,” said Mukesh Mehta, Senior Managing Director, Blackstone, at the listing ceremony. “IGI stands for Integrity, Growth, Innovation,” he added.

Blackstone owns IGI India, as well as IGI Netherlands and IGI Belgium. The offer-for-sale component of ₹2,750 crore will be used by the private equity firm to buy IGI Belgium and Netherlands and bring it under the fold of IGI India, which will then be the holding company.

IGI gets the greater part of its revenues from the certification of lab grown diamonds, while it also certifies natural diamonds and gems and jewellery.

Largest consumer

The US, which accounts for half of the demand for diamonds globally with a 53 per cent market share, is the largest consumer of lab grown diamonds. “It is a mega trend,” said Amit Dixit, Head of Private Equity Asia, Blackstone. “It is taking America by storm, it will take every country by storm.”

Pointing out that that IGI had a 65 per cent market share in certifying lab grown diamonds, he said he hoped that they could create the “next TCS” of this industry.