International Gemmological Institute Sets Price Range For Rs 4,225-Crore IPO

The initial public offering of International Gemmological Institute (India) Ltd. is set to open later this week at a price band of Rs 397 to Rs 417 per share.

The Rs 4,225-crore IPO comprises a fresh issue of shares worth Rs 1,475 crore along with an offer-for-sale component for Rs 2,750 crore, according to its price band advertisement on Monday. BCP Asia II will be the selling shareholder under the offer-for-sale segment in the maiden offering.

The company filed its draft red herring prospectus with the Securities and Exchange Board of India in August and had initially aimed to raise Rs 4,000 crore.

Following the public issue, shares of International Gemmological Institute will be listed on the NSE and the BSE. Bids can be made for a minimum lot of 35 shares or in multiples thereof, according to the price band advertisement.

The anchor investment round is scheduled on Dec. 12, a day before the offer opens for subscription. The IPO will open for bidding on Dec. 13 and close on Dec. 17.

Axis Capital Ltd., Kotak Mahindra Capital Co., Morgan Stanley India Co. and SBI Capital Markets Ltd. are the book-running lead managers for the issue and KFin Technologies Ltd. is the registrar for the offer.

The company plans to use Rs 1,100 crore from the net proceeds to acquire 100% of the share capital of IGI Belgium Group and IGI Netherlands Group from their promoter—BCP Asia II TopCo Pte.

Post the acquisition, the rest of the proceedings will be utilised towards general corporate purposes as approved by the management. This includes working capital requirements, strengthening marketing capabilities and brand building exercise.

IGI India's business encompasses services for the certification and accreditation of natural diamonds, lab-grown diamonds, studded jewellery, and coloured stones, in addition to providing educational programmes.