This IPO will be a mix of a fresh equity issue worth Rs 1,250 crore and an offer-for-sale (OFS) of shares totalling Rs 2,750 crore by BCP Asia II TopCo Pte Ltd, an affiliate of Blackstone-managed funds.
The fresh issuance proceeds are expected to be utilized for strategic acquisitions, specifically the purchase of IGI Belgium Group and IGI Netherlands Group from its promoter, BCP Asia II TopCo Pte Ltd. These acquisitions are pivotal as these entities oversee the operations of IGI outside India and Turkey. A portion of the funds will also be allocated for general corporate expenses.
IGI India is a dominant player in the gemological certification and accreditation industry, commanding nearly 50% of the country's market share for diamond, studded jewellery, and coloured stone certifications. The company also offers a range of educational programs related to gemology. India's position as the world's largest diamond cutting and polishing hub, processing about 95% of the world's polished diamonds by volume in 2023, underscores IGI's significant market influence.
Financially, IGI India has shown strong growth, reporting a net profit of Rs 324.7 crore for the year ending December 2023, marking a 34.3% increase from the previous year. The company’s revenue surged by 30% year-on-year to Rs 638.5 crore, while EBITDA grew by 34.3% to Rs 450.1 crore, with a margin expansion to 70.5%.
For the first quarter of 2024, IGI India reported a profit of Rs 124.8 crore on revenues of Rs 209.1 crore. The company has appointed Axis Capital, Kotak Mahindra Capital, Morgan Stanley India, and SBI Capital Markets as the lead managers for the IPO.
This IPO marks a significant move for IGI India as it seeks to solidify its market position and expand its global footprint through strategic acquisitions.
