International Gemmological Institute (IGI) will invest up to USD 9,000,000 in its wholly-owned subsidiary, IGI Belgium. Furthermore, IGI Belgium will invest up to USD 9,000,000 in IGI USA, also a wholly-owned subsidiary. These investments, totaling $18 million, will be made via subscription of securities. The intent is to strengthen their global certification platform, leveraging the expertise of IGI and AGL (likely acquired by IGI USA), while upholding scientific integrity.
Investment in IGI Belgium
The board approved an investment of up to USD 9,000,000 in International Gemmological Institute BV (IGI Belgium), a wholly-owned subsidiary of the company. This investment will be executed in one or more tranches through subscription of securities.
Investment in IGI USA via IGI Belgium
IGI Belgium will invest up to USD 9,000,000 in International Gemological Institute Inc. (“IGI USA”), a wholly-owned subsidiary of IGI Belgium and a step-down wholly-owned subsidiary of the company. This investment will also occur in one or more tranches through subscription of securities.
Strategic Rationale
The investment into IGI USA will be used for the acquisition of 100% of the share capital of AGL Holdco Inc., effectively making it a wholly-owned subsidiary of IGI USA and a step-down subsidiary of both IGI Belgium and IGI India. This acquisition aims to create a global certification platform.
IGI Belgium Details
IGI Belgium, incorporated on June 30, 1975, has presence in Belgium and the United States of America. The principal business is providing diamond, gemstone, and studded jewelry certification services, along with gemmological institute services. The standalone turnover for FY24 was INR 391.05 million.
IGI USA Details
IGI USA, incorporated on March 26, 1979, has presence in the United States of America. The principal business is providing diamond, gemstone, and studded jewelry certification services, along with gemmological institute services. The standalone turnover for FY24 was INR 940.06 million.
Source: BSE
