The shares of International Gemmological Institute were trading at a 22.3 per cent premium to the issue price at ₹510 on the NSE, hitting an intraday high of ₹525, but could not maintain their momentum on a day when the markets saw a sell-off and ended 8.2 percent lower than the listing price, at ₹468.45, but still a 13 percent gain over the issue price.
On the first day of listing, it ended with a market capitalization 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 of 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 bid-for-sale component of ₹2,750 crore will be used by the private equity firm to buy IGI Belgium and Netherlands and bring them under the care of IGI India, which will then be the holding company.
IGI derives most of its revenue from the certification of lab-grown diamonds, while it also certifies natural diamonds, gemstones and jewelry.
Biggest consumer
The US, which accounts for half of the world’s diamond demand with a 53 percent market share, is the largest consumer of lab-grown diamonds. “It’s a megatrend,” says Amit Dixit, head of Private Equity Asia at Blackstone. “It’s taking America by storm, it’s going to take every country by storm.”
He pointed out that IGI had a 65 percent market share in the certification of lab-grown diamonds and said he hoped they could create the industry’s “next TCS.”
