Overview of the IPO Proposal
BlueStone Jewellery, India’s second-largest digital-first jewellery brand, has filed draft papers with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO). The offering includes a fresh issue of shares worth ₹1,000 crore and an offer for sale (OFS) of up to 2.4 crore equity shares by existing investors. The Bengaluru-based company, known for its contemporary diamond, gold, and platinum jewellery under the flagship brand BlueStone, aims to utilize ₹750 crore from the fresh issue proceeds to meet working capital requirements and for general corporate purposes.
Prominent stakeholders participating in the OFS include Accel India, Saama Capital, Kalaari Capital, Hero Group’s Sunil Munjal, and other early investors who plan to divest their stakes. Accel, the largest shareholder among investors, currently holds a 17.12% stake in BlueStone. Axis Capital, IIFL Capital Services, and Kotak Mahindra Capital Company have been appointed as the book-running lead managers for the issue, with shares expected to list on the BSE and NSE.
Company and Stakeholder Details
Founded in 2011 by Gaurav Singh Kushwaha, BlueStone has emerged as a prominent player in India’s fine jewellery e-commerce market. Initially operating online, the company ventured into physical retail in 2018, opening its first store in Delhi’s Pacific Mall. As of June 2024, BlueStone boasts a network of 203 stores across 86 cities in India and operates manufacturing facilities in Mumbai, Jaipur, and Surat.
The company has 104 public shareholders, collectively owning a 26.82% equity stake. Promoters, including Kushwaha, hold 18.47%, with the remaining 81.53% distributed among public shareholders. Notable investors backing BlueStone Jewellery include Zerodha’s co-founder Nikhil Kamath, Accel India, Saama Capital, Kalaari Capital, and Hero Enterprise’s Sunil Munjal. In recent years, BlueStone secured significant funding, including ₹550 crore in 2023, achieving a valuation close to $440 million.
Market Position and Financial Performance
BlueStone has positioned itself as a key competitor to established players like Titan’s Tanishq, Kalyan Jewellers, and Senco Gold. Operating in the world’s second-largest market for gold jewellery, the company has expanded its offline and online presence to cover over 12,600 PIN codes nationwide.
On the financial front, BlueStone Jewellery demonstrated robust growth, with revenue increasing 64.24% to ₹1,265.84 crore in FY24 from ₹770.73 crore in FY23. For the six months ending June 2024, the company reported revenue of ₹348.24 crore but faced a net loss of ₹59 crore. Despite challenges, the IPO marks a significant step in BlueStone’s journey to strengthen its position in India’s competitive jewellery market.
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