The state-owned firm plans to sell a 16 per cent stake to outside investors, raising up to US$1.5bn (£930m).
Based in the regions of Yakutia, in north-eastern Russia, and Arkhangelsk, in north-western Russia, Alrosa was established in 1992. In 2012 it produced 34.4 million carats of rough diamonds, accounting for 27 per cent of the world’s rough diamond output.
In the six months ended 30 June 2013, the company produced 17.1 million carats of rough diamonds.
The Russian government is the largest shareholder in the firm, accounting for 51 per cent of the company, with the Republic of Sakha (Yakutia) owning 32 per cent.
College Hill’s Tony Friend, Leonid Fink, Galyna Kulachek and David Simonson will handle the account.
Paul Downes, chief executive of College Hill Capital Markets, said the transaction "marks an important milestone for both the company and the ongoing privatisation programme in Russia".
He added: "It is a great business with an exceptionally experienced senior management team. We are committed to developing further our activities in Russia and CIS, and with our expanded team look forward to a number of exciting projects over the next few months and beyond."