Promoters typically pledge shares to raise funds for working capital, expansion, or financial management. However, IGI India (IGIL) does not require funds for these reasons, as it has a strong balance sheet, superior return ratios, and no debt. The IPO proceeds were primarily used to acquire IGI Belgium and IGI Netherlands—both owned by the same promoters.
Blackstone acquired IGIL in 2023 for approximately $500 million and listed it in India in late 2024 at a valuation of over $2 billion, achieving a 4x return in just 1.5 years. As a VC firm, Blackstone aims to maximize liquidity and reinvest in other opportunities. Pledging shares allows them to unlock value without an immediate exit.
Notably, Blackstone has already recouped its initial investment through the IPO proceeds while retaining a 76.5% stake in a multi-billion-dollar listed entity. Given the nature of the promoters, pledging in this case should be viewed differently.
The main long-term risk related to the promoters could be an untimely promoter exit , frequent share sales or a potential sale to another private equity firm that may not manage the company well. However, in recent interviews, both the CEO and CFO have indicated that the promoters plan to stay invested for at least the next 3–5 years.
Ultimately, the true intent of the promoters will become clearer after the lock-in period ends.