BlueStone Jewellery & Lifestyle Limited Announces IPO Details

BENGALURU: BlueStone Jewellery & Lifestyle Limited is gearing up for its initial public offering (IPO) launch on August 11, targeting an impressive valuation of approximately Rs 7,800 crore. The book-built issue is scheduled to conclude on August 13.

Offer Composition and Utilization of Proceeds

The IPO includes a fresh issue of shares valued at Rs 820 crore alongside an offer-for-sale of up to 1.39 crore shares by existing shareholders. Anchor investor bidding is set to commence on August 8. Proceeds from the fresh issue are earmarked for repaying or prepaying borrowings, financing capital expenditure for store expansion, and general corporate purposes.

Company Background and Financial Performance

Founded in 2011 by Gaurav Singh Kushwaha and Vidya Nataraj, BlueStone boasts a network of 275 stores across 117 cities, offering jewellery both online and offline. Despite reporting a loss of Rs 2,218 crore for FY25, up from Rs 1,422 crore in FY24, the company saw its adjusted Ebitda turn positive at Rs 1,278 crore in FY25, compared to Rs 1,054 crore the previous fiscal.

Market Position and Risks

The average order value for the jewellery retailer increased to Rs 47,671 in FY25 from Rs 41,205 in FY24, with studded jewellery accounting for nearly 68% of revenue. However, the company faces risks including ongoing losses and high leverage, highlighted by a net debt-to-equity ratio of 0.66 (excluding gold metal loans) as of FY25.