Blackstone mulls $300 million IPO for IGI diamond certification firm

Blackstone mulls IPO: Private equity giant Blackstone is reportedly considering a $300 million initial public offering (IPO) for the International Gemological Institute (IGI), a leading gemstone certification firm. Sources familiar with the matter suggest that Blackstone is eyeing a valuation of $1.5 billion for IGI.

Blackstone acquired IGI for $570 million in May 2023 from Chinese conglomerate Fosun and the business's founding Lorie family. IGI, which originated in Belgium 50 years ago, has now established a major presence in India, where it conducts the majority of its operations. It is renowned as the world's largest independent lab for testing and grading diamonds and other gemstones.

To spearhead the IPO deal, Blackstone has enlisted the expertise of investment banks Morgan Stanley and Kotak. However, representatives from Blackstone and Morgan Stanley declined to comment on the matter, while IGI and Kotak did not respond to queries seeking confirmation.

IGI's revenue and profits are predominantly derived from its operations in India, where it offers a range of services including diamond screening, sorting, and academic courses. With the IPO, IGI aims to leverage the growing demand for lab-grown diamonds in India, where the sector has witnessed tax cuts to encourage its development.

The Indian jewellery market, valued at $78 billion in 2021, presents lucrative opportunities for players like IGI. As consumer preferences shift towards diamonds, particularly among younger demographics, IGI seeks to capitalize on this trend through its IPO.

While plans to list IGI are still in the early stages and subject to change, Blackstone appears eager to capitalise on India's vibrant IPO market, which has emerged as one of the busiest in Asia. In the first quarter of 2024 alone, Indian companies raised $2.3 billion through IPOs, signaling a substantial increase compared to the previous year.

(With Reuters inputs)