Blog

IPO Details

• IPO Opening: Monday, August 11, 2025 IPO
• Closing: Wednesday, August 13, 2025
• IPO Size: ₹1,541 crore Fresh Issue: ₹820 crore ; Offer for Sale (OFS): ₹721 crore by 5 PE investors and Sunil Kant Munjal
• Price Band: ₹492 to ₹517
• Bid Lot: 29 shares and multiples thereo
• Allocation to Investors: 75% for QIBs, 15% for NIBs, 10% for Retail
• Book Running Lead Managers: Axis Capital Limited, IIFL Capital Services Limited, Kotak Mahindra Capital
• Registrar Kfin Technologies Limited

About the Company

• History: The company was incorporated as “New Age E Commerce Services Pvt. Ltd” on July 22, 2011, changed its name to “BlueStone Jewellery and Lifestyle Pvt. Ltd” in November 2013, and converted to a public limited company, “BlueStone Jewellery and Lifestyle Limited,” in November 2024.
• Main Products/Services: BlueStone offers contemporary lifestyle diamond, gold, platinum, and studded jewellery under its flagship brand. Its product range includes rings, earrings, necklaces, pendants, solitaires, bangles, bracelets, and chains. Approximately 67% to 68% of sales come from studded jewellery. Sales & Manufacturing Units: Initially an online-only jewellery brand, it began opening physical stores in FY19.
• As of March 31, 2025, it operated 275 stores across 117 cities in 26 States and Union Territories in India, comprising 200 Company Stores and 75 Franchisee Stores.
• The company has an in-house manufacturing setup, producing over 75% of its total jewellery in facilities located in Mumbai, Jaipur, and Surat. It also has an in-house design team of 23 designers.
• Promoter: Gaurav Singh Kushwaha is the promoter, chairman, managing director, and CEO of the company.
• Network: It operates as an omni-channel jewellery brand, integrating its website and mobile application with its physical store network to provide a seamless customer experience across India.

Financials

Restated Consolidated Financials (₹ in Crores):

Post IPO Market Cap: ₹7,823 crore Market Cap/Sales (FY25): 4.42x (₹7,823 crore / ₹1,770 crore) P/E for FY24: Not Applicable (loss-making) P/E for FY25: Not Applicable (loss-making)

Observation on results: The company has exhibited tremendous revenue growth with a 50% CAGR over the last three years. Despite this growth, it has consistently incurred net losses. These losses are primarily attributed to aggressive investments in expanding its physical store network and building scale.

Anchor investors

• BlueStone Jewellery raised a total of ₹693.3crore from 20 anchor investors through its IPO. The top 10 anchor investors and their percentage allocations were: Amansa Holdings (24.40%), SBI Life Insurance, Nippon India Mutual Fund, Goldman Sachs, Aditya Birla Sun Life Mutual Fund, HDFC Life Insurance, Societe Generale, DSP India Mutual Fund, PGIM India Mutual Fund, and Axis Mutual Fund — each ranging broadly from 1% to 4% allocation, with Amansa Holdings being the largest.
• Out of the total anchor allocation, mutual funds received 27.27%

Salient points

• Use of Funds: The net proceeds from the fresh issue are intended to fund the company’s working capital requirements (₹750 crore) and for general corporate purposes.
• Business Scenario: The company positions itself as a fashion jewellery brand catering to the modern woman. It is recognized as the fastest-growing jewellery retailer among leading Indian players between FY21 and FY24. Business Operations: BlueStone started as an online-only brand and expanded into physical stores in response to customer demand for in-person viewing of high-value jewellery. While most customer journeys begin online, a significant portion culminates in physical store purchases, with only 6-7% of actual invoicing occurring purely online.
• The company has industry-leading gross margins, consistently around 37-38%, due to its focus on studded jewellery, which accounts for approximately 67-68% of its sales, and its in-house manufacturing capabilities.
• Business Strategy: The company plans to expand its omni-channel presence by increasing its network of company-owned stores to reduce reliance on franchisees for capital. It also aims to boost revenue per store per month by increasing in-store inventory.
• Risks:
• The company has consistently reported losses since its inception, with no clear visibility of achieving profitability in FY26 or FY27.
• It faces high overheads, including marketing expenses, which, although decreasing as a percentage of revenue (from 12% to 9% over the last 2-3 years), remain substantial compared to peers.
• Store productivity and EBITDA per store are lower than those of some competitors.
• Has raised approximately ₹1,820 crore in capital while revenue is jusr ₹1,770 crore.
• . low promoter holding (16% post-IPO) and pledged shares (37% of promoter holding pre-IPO)
• Selling overhang from 15+ financial investors.
• Litigations:appeal filed in the Securities Appellate Tribunal (SAT) by C. Krishniah Chetty & Sons, alleging misrepresentation, inadequate disclosure, misuse of reputation, and omission of material facts in the Draft Red Herring Prospectus.
• Revenue Split by Region (FY2025): West: 22.12%; East: 14.07%; North: 39.47%. Export/Import: All revenue from operations is domestic, with no export revenue.
• Capacity Utilisation (FY2025): Mumbai: 98.57%; Jaipur: 81.72%; Surat: 68.25%.
• Working Capital & Inventory: The inventory turnover ratio has decreased from 2.75 in FY23 to 1.34 in FY25, indicating longer inventory holding periods.
• CAGR: The company has achieved a revenue growth CAGR of approximately 50% over the last three years.

Peers Comparison with Industry Peers (as at March 31, 2025):

Management commentary

The management attributes the company’s losses to aggressive investments aimed at building scale, particularly the expansion to 275 stores. They state that the business has seen tremendous growth, achieving a 50% CAGR over the last three years. While starting as online-only, they recognized a “user behavior” where customers preferred browsing online but wanted to see the product physically before purchase, leading to the development of their omni-channel model. The company’s older stores are already highly profitable, generating about 24% store-level EBITDA on ₹10 crore revenue productivity. They highlight industry-leading gross margins of 37-38%. The management also believes that lab-grown diamonds do not pose a significant threat to their business, as their primary focus is on smaller diamond categories and India is a design-heavy market rather than a solitaire-heavy one.

Opinion I will skip this IPO. Low promoter stake. frequent and substantial capital raise, losses and overhang of share sale by financial investors.

This post is exploratory and educational purposes only.

• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.