Jewellery Brand BlueStone Seeks ₹1,000 Crore Through IPO

BlueStone Jewellery and Lifestyle, a Bengaluru-based contemporary jewellery brand, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise ₹1,000 crore through an Initial Public Offering (IPO). The company aims to expand its operations and strengthen its financial standing by listing its shares on the Indian stock exchanges.

IPO Structure and Proceeds Utilization

The BlueStone IPO will consist of two main components: a fresh issue of shares worth ₹1,000 crore and an offer for sale of up to 2,39,86,883 equity shares by existing shareholders. Of the ₹1,000 crore, ₹750 crore will be raised through the fresh issue, and the proceeds will primarily be utilized for working capital requirements and general corporate purposes.

The offering will be conducted via the book-building process. Shares will be allocated in the following manner: 75% to qualified institutional buyers (QIBs), 15% to non-institutional investors (NIIs), and 10% to retail investors. Leading financial institutions such as Axis Capital, IIFL Capital Services, and Kotak Mahindra Capital Company will act as the book-running lead managers for the IPO. KFin Technologies will serve as the registrar for the issue.

About BlueStone Jewellery and Lifestyle

Founded in 2011, BlueStone has emerged as a key player in India’s jewellery market, offering a wide range of jewellery collections. The company primarily operates across digital platforms and retail outlets, catering to a diverse demographic. BlueStone’s product offerings include daily wear jewellery, as well as exclusive themed collections like the Greece Architecture series, Jodhpur Series, Missy, and Rainforest.

These signature collections have significantly helped BlueStone establish itself as one of the top six jewellery retailers in India, measured by design volume. The brand has successfully catered to men, women, and couples aged 25 to 45, becoming a popular choice for modern consumers seeking elegant, high-quality jewellery.

BlueStone’s Retail and Online Presence

BlueStone’s physical retail presence includes 110 company-owned stores and 93 franchised outlets, covering more than 350,000 square feet of retail space as of June 30, 2024. The company has developed a strong presence in India’s jewellery market, with its wide-ranging collections appealing to consumers across the country.

In addition to its physical stores, BlueStone has established a robust online presence, allowing customers to purchase jewellery conveniently from their digital platform. This omnichannel approach has helped the brand reach a wider customer base, establishing it as one of the leading jewellery retailers in India.

Financial Performance and Growth

BlueStone has demonstrated impressive financial growth in recent years. For the fiscal year 2024 (FY24), the company reported a 64% increase in revenue from operations, reaching ₹1,266 crore. This surge in revenue was primarily driven by strong sales in the company’s product categories. For the six-month period ending June 30, 2024, BlueStone reported a revenue of ₹348.24 crore, signaling its continued growth trajectory in the competitive Indian jewellery market.

Investor Backing and Future Prospects

BlueStone is backed by prominent investors, including Accel India, Kalaari Capital, and Hero Enterprise, among others. This strong financial backing has enabled the company to expand its operations and strengthen its market presence. With the upcoming IPO, BlueStone plans to further enhance its position in the industry, tapping into the growing demand for high-quality, contemporary jewellery in India.

The company's upcoming listing on the stock exchange is expected to open new avenues for growth and investment, allowing BlueStone to further innovate and expand its reach across the Indian market and beyond.

Conclusion

BlueStone Jewellery’s upcoming ₹1,000 crore IPO marks a significant milestone in its journey to expand its footprint in India’s competitive jewellery market. With its impressive growth in both retail and online channels, the company has firmly positioned itself as one of the top jewellery retailers in India. Backed by prominent investors and a strong portfolio of contemporary jewellery collections, BlueStone is poised to leverage the IPO proceeds to further enhance its operations and market reach. As the IPO progresses, it will not only help the company strengthen its financial standing but also provide investors with an opportunity to participate in the growing demand for high-quality, modern jewellery in India. With a proven track record of growth and a solid business model, BlueStone’s future prospects appear promising as it continues to shape its position in the evolving