Global alternatives asset manager Blackstone is betting big on International Gemmological Institute, whose ₹4,225 crore public issue will be opening this Friday with a price band of ₹397-417 per share.

Blackstone acquired IGI India in May 2023 for $570 million and the valuation of the firm is now around $2 billion. “I would just say that this company today is not the same company that we bought. A lot has happened in the last 18 months,” said Prateek Roongta, Managing Director within the portfolio operations group at Blackstone and a non-executive, nominee director on IGI India board.

The IPO consists of an offer-for-sale in which Blackstone would be selling shares worth ₹2,750 crore and a fresh issue in which IGI India would raise ₹1,475 crore, of which ₹1,300 crore would be used to buy IGI Belgium and IGI Netherlands from the promoter – Blackstone. IGI India would then be the holding entity of the group.

IGI Belgium holds the rights to the brand while IGI Netherland is the holding entity for all international businesses of the group, apart from US and Belgium.

Around 76 per cent of the group’s revenue comes from India. While 90 per cent of all diamonds in the world are made in India, the demand is generated outside (US and Europe).

Post the IPO and restructuring, the group’s revenue for the nine months till September 30, stood at ₹788 crore with a net profit ₹434.6 crore. Around 59 per cent of the company’s revenues are from certification of lab-grown diamonds, while a little over 19 per cent comes from natural diamonds.

Due to their lower price, lab-grown diamonds are rapidly becoming popular especially among those looking for more affordable options. In India, there is a wide difference in the prices of lab-grown and natural diamonds, with the latter viewed as rare and unique. In the US, the price of natural diamonds is more than the double of the price of lab-grown ones.