Bengaluru-based jewellery retailer BlueStone Jewellery and Lifestyle 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 offering includes a fresh issue of shares and an Offer for Sale (OFS) by existing investors.
IPO Structure and Fund Utilisation
The IPO comprises a fresh issue of shares worth ₹750 crore and an OFS of approximately 24 million equity shares by investors, including Kalaari Capital, Saama Capital, and Sunil Kant Munjal (Hero Enterprise). Proceeds from the fresh issue will primarily be used for working capital and general corporate purposes.
Stake Divestment by Key Investors
The IPO provides an exit opportunity for early investors Kalaari Capital and Saama Capital, who are fully divesting their holdings. Growth-stage investor Iron Pillar Fund is reducing its stake by a third, while Sunil Kant Munjal of Hero Enterprise is selling nearly half his shares in the company.
BlueStone’s Growth and Operations
Founded in 2011 by Vidya Nataraj and Gaurav Kushwaha, BlueStone operates through both online platforms and physical retail stores. As of June 2024, it manages 203 stores, including company-owned and franchised outlets. Its jewellery is designed in-house and supported by three manufacturing facilities located in Mumbai, Jaipur, and Surat, along with a prototype facility in Mumbai.
Financial Performance
In FY23-24, BlueStone reported revenues of ₹1,303 crore, a 65% increase compared to ₹787 crore in the previous financial year. During the same period, the company reduced its net loss by 15% to ₹142 crore. In the first quarter of FY24-25, BlueStone reported an operating revenue of ₹348 crore and a net loss of ₹59 crore.
Promoter’s Stake Contribution
Gaurav Singh Kushwaha, founder and CEO of BlueStone, purchased shares worth ₹75 crore at ₹578 per share to meet the minimum promoter contribution requirement for the IPO. Following this purchase, Kushwaha now holds an estimated 17–18% stake in the company.
Implications for the Jewellery Industry
BlueStone’s IPO highlights the growing adoption of hybrid retail strategies within the jewellery industry, combining e-commerce with physical outlets to meet evolving consumer preferences. The capital raised is expected to enhance the company’s operational capacity and strengthen its financial position. For jewellers, this development underscores the importance of integrating retail channels and demonstrating financial stability to attract investment and maintain competitiveness in a dynamic market.
