Bluestone Jewellery Plans ₹1,000 Crore IPO With Offer for Sale

Bluestone Jewellery and Lifestyle, backed by prominent investors such as Accel, Peak XV Partners, and Sunil Kant Munjal, filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on December 11, 2024, signalling its intent to go public.

IPO Structure & Fund Utilisation

The IPO will consist of a fresh issue of equity shares worth ₹1,000 crore and an offer-for-sale (OFS) of up to 2.4 crore equity shares by existing shareholders. Among the selling shareholders in the OFS are Accel India, Saama Capital, Kalaari Capital Partners, IvyCap Ventures Trust, Iron Pillar Fund, and Sunil Kant Munjal. Notably, Saama Capital II, Kalaari Capital Partners II, and IvyCap Ventures Trust – Fund 1 are planning a complete exit from the company.

Proceeds from the fresh issue will primarily support Bluestone’s working capital requirements, with the remaining funds allocated for general corporate purposes.

Shareholding & Promoter Details

Bluestone’s shareholding structure includes an 18.47% promoter stake, with 17.81% held by founder Gaurav Singh Kushwaha. Public shareholders own 81.53%, with Accel India holding the largest share at 17.12%.

Financial Performance & Market Position

While Bluestone is loss-making, its revenue grew 64.2% in FY24, reaching ₹1,265.8 crore, compared to ₹770.7 crore in FY23. The company’s net loss narrowed to ₹142.2 crore in FY24 from ₹167.2 crore in the previous year. For the six months ending June 2024, revenue was ₹348.24 crore, with a net loss of ₹59 crore.

Market Presence & Competitors

Founded in 2011, Bluestone operates 203 stores across 86 cities in India and competes with industry giants like Titan’s Tanishq, Kalyan Jewellers, and Senco Gold. The company, headquartered in Bengaluru, combines online-first operations with a growing offline presence.

With its revenue growth and backing from investors, Bluestone’s IPO marks a notable development in the market. Its plans reflect an effort to strengthen operations and expand amidst competition from established players in the industry.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.