Strong Subscription on Day 2 for International Gemmological IPO

The initial public offering (IPO) of the diamond grading firm, International Gemmological Institute (India) Ltd, has seen a strong subscription of 72% on the second day of its share sale on Monday. According to NSE data, the IPO received bids for 42,406,035 shares against the 58,560,902 shares on offer. This significant interest underscores the market's confidence in the company's future prospects.

Retail and Institutional Interest: The retail individual investors (RIIs) portion saw a robust subscription of 2.44 times, while the category for non-institutional investors received an 83% subscription. The Qualified Institutional Buyers (QIBs) category, however, fetched only a 9% subscription. This varied interest across different investor segments highlights the diverse appeal of the IPO.

Anchor Investors and Price Band: Blackstone-backed International Gemmological Institute (India) Ltd had earlier mobilized Rs 1,900 crore from anchor investors. The issue, with a price band of Rs 397-417 per share, is set to conclude on December 17. The Rs 4,225-crore IPO comprises a fresh issue of equity shares worth Rs 1,475 crore and an Offer-for-Sale (OFS) valued at Rs 2,750 crore by promoter BCP Asia II TopCo Pte Ltd, an affiliate of Blackstone.

Use of Proceeds: The company plans to utilize the proceeds from the fresh issue for the acquisition of IGI Belgium Group and IGI Netherlands Group from the promoter, and for general corporate purposes. International Gemmological Institute (India) Ltd specializes in the certification and accreditation of natural diamonds, laboratory-grown diamonds, studded jewellery, and coloured stones.

Book-Running Lead Managers: Axis Capital, Kotak Mahindra Capital Company, Morgan Stanley India Company, and SBI Capital Markets are the book-running lead managers to the issue. The shares of the company are expected to be listed on the BSE and NSE, marking a significant milestone for the firm.