International Gemmological Institute IPO GMP Indicates Strong Market Debut; Details Here

The grey market premium for Blackstone-backed International Gemmological Institute (India) Ltd., set to launch its initial public offering on Dec. 13, suggests a potential listing gain of 31.41% over the issue's upper price band, ahead of its opening.

The GMP stood at Rs 131, projecting a possible listing price of Rs 548, according to InvestorGain. GMP on the International Gemmological Institute IPO has dropped to Rs 131 from the highest level of Rs 145, recorded on Dec. 9.

Notably, GMP or grey market price is not an official price quote for the stock and is based on speculation.

Investors can place bids in the International Gemmological Institute IPO between Dec. 13 and 17. The allotment of shares in the issue is slated to be finalised on Dec. 18. 

International Gemmological Institute Ltd.'s shares are proposed to be listed on the BSE and NSE on Dec. 20.

The International Gemmological Institute IPO's price band has been in the range of Rs 397 to Rs 417 at a face value of Rs 2 per share. Retail investors looking to bid in the IPO can do so with a minimum lot size of 35 shares, resulting in an investment of Rs 14,595 per application.

The book-built issue, worth Rs 4,225 crore, is a combination of fresh issue of 3.54 crore shares aggregating Rs 1,475 crore and an offer for sale of 6.59 crore shares aggregating Rs 2,750 crore. BCP Asia II will be the selling shareholder under the offer-for-sale segment in the IPO.

International Gemmological Institute (India) Ltd. has appointed Axis Capital Ltd., Kotak Mahindra Capital Co., Morgan Stanley India Company Pvt., and SBI Capital Markets Ltd. as the book-running lead managers for its issue. 

Kfin Technologies Ltd. is the registrar for this mainboard issue.

International Gemmological Institute (India) Ltd. has proposed using Rs 1,100 crore from the net proceeds from the public offer to acquire 100% of the share capital of IGI Belgium Group and IGI Netherlands Group from their promoter, BCP Asia II TopCo Pte.

The remaining will be used for general corporate purposes as approved by the company’s board. 

IGI India Ltd. is engaged in the business of certification and accreditation of natural diamonds, lab-grown diamonds, studded jewellery and gemstones. The company provides independent grading reports that analyse and certify the characteristics of stones using internationally recognised standards

Further, IGI also offers education courses and degree plans for the gem and jewellery trade. 

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids