By Manvi Pant

BENGALURU, Aug 22 (Reuters) - Blackstone-owned

International Gemmological Institute (IGI) filed draft papers

for an initial public offering worth up to 40 billion rupees

(about $477 million), to capitalise on the booming demand for

lab-grown diamonds in India amid a red-hot IPO market.

IGI, which grades diamonds, gemstones and jewellery, said it

will issue new shares worth up to 12.5 billion rupees, whereas

Blackstone will sell shares worth up to 27.5 billion rupees.

India along with China and the U.S. contribute to 74% of the

global jewellery market share, as per IGI's analysis, citing

World Bank and RedSeer, a Bangalore-based consultancy firm.

While founded in Belgium 50 years ago, IGI derives majority

of its revenue and profits from India today, Reuters had

reported earlier this year.

IGI's public float also comes at a time when more than 150

companies have raised over $5 billion on India's highly active

stock market so far this year, per LSEG data at July-end.

Its IPO follows successful listings by FirstCry,

Ola Electric, Allied Blenders and Emcure

Pharmaceuticals.

IGI's business model stands uniquely among other players

whose IPOs have soared, and is expected to garner good response

from public and institutional investors, said Kranthi Bathini,

director of equity strategy at WealthMills Securities.

Axis Capital, Kotak Mahindra Capital Company, Morgan Stanley

India and SBI Capital Markets are the bookrunning lead managers

of the IPO.

Blackstone will use the proceeds for payments related to

acquisitions in IGI Belgium and IGI Netherlands, according to

the draft papers.

($1 = 83.9150 Indian rupees)