IGI to Use IPO Proceeds for Global Acquisitions

IGI (International Gemological Institute) is planning to leverage its IPO proceeds from its Indian entity to fund acquisitions in an effort to consolidate its global operations. The aim is to unify its three verticals, with a particular focus on integrating the manufacturing strength from India, the diamond polishing hub, with its stronghold in the Western retail markets. The IPO rationale is not only to raise funds for this purpose but also to position IGI as a global leader in diamond certification, particularly enhancing its capabilities in the burgeoning lab-grown diamond market. IGI's management, including MD & CEO Tehmasp Printer and CFO Eashwar Iyer, outlines their vision of synergizing manufacturing and retail strengths to cater to a broad consumer base, especially in major markets like the US and Europe. India accounts for a significant portion of IGI's turnover, making it a strategic location for listing. The cash infusion from the IPO will be instrumental in making strategic mergers and acquisitions. Currently owned by Blackstone, which plans to offload part of its stake, IGI aims to consolidate its operations globally, especially in India and Turkey. This consolidation is projected to align better with the diverse needs of retailers across various regions. The post-acquisition valuation of IGI is expected to hit around Rs 18,000 crores, with a robust EBITDA margin of approximately 56%. The lab-grown diamond sector is recognized as a key growth driver, offering affordability and potentially broadening IGI's consumer base. This aspect highlights the motivation behind the IPO, which, according to IGI, stands to not only enhance their market position but also pave the way for significant future growth in both natural and lab-grown diamond sectors.