BlueStone Jewellery IPO: Dates, Price, GMP, and Financial Analysis
This article covers an upcoming IPO with an issue size of ₹1500 crore, set to open next week. This is a main board IPO, requiring approximately ₹15,000 to apply. We will discuss details on the IPO dates, price band, and Grey Market Premium (GMP) updates. For daily IPO and GMP updates, consider subscribing to our channel. Additionally, a Telegram group link is provided in the comments for timely updates.
BlueStone Jewellery IPO: Key Dates
The IPO opening next week from Monday is the BlueStone Jewellery IPO. Its application dates are as follows:
- Open Date: August 11th
- Second Application Day: August 12th
- Closing Date: August 13th Investors will have these three days to apply for this main board IPO.
Other important dates related to the BlueStone Jewellery IPO include:
- Allotment Finalization: August 14th
- Refund Initiation: August 18th
- Shares Credited to Demat Account: August 18th
- Listing Date (BSE & NSE): August 19th
BlueStone Jewellery IPO: Issue Details
The face value for each equity share in the BlueStone Jewellery IPO is ₹1. The upper price band for the company’s shares has been set at ₹570. It is recommended to apply at this upper cut-off price of ₹570, as selecting lower price bands might reduce your chances of allotment.
Investors must select a minimum of 29 equity shares for one lot when applying. The total issue size for the BlueStone Jewellery IPO is substantial, exceeding ₹1540 crore. Specifically, it is approximately ₹1540.65 crore. This issue size consists of two main parts:
- Fresh Issue: ₹820 crore, which represents funds that will go directly to the company.
- Offer for Sale (OFS): Approximately ₹720 crore, through which promoters and existing shareholders will be selling their stakes. This is a book-building IPO, and the company’s shares will be listed on both the BSE and NSE exchanges.
Issue Distribution and Application Amounts
The ₹1540 crore total issue size will be distributed among various investor categories as follows:
- Qualified Institutional Buyers (QIBs): 75% of the shares, which includes allocation for anchor investors.
- Retail Category: 10% of the shares, translating to approximately ₹154 crore worth of shares. Given the ₹15,000 application requirement, there is a high likelihood of oversubscription in the retail category.
- Non-Institutional Investors (NIIs) / HNIs: 15% of the total issue size.
The minimum application amounts required for different categories are:
- Retail Category: Minimum of ₹14,993 or more for one lot.
- Small HNI Category: ₹2,99,902.
- Big HNI Category: ₹14,531.
Promoter Holding
Before the IPO, the promoter holding in BlueStone Jewellery was 18.28%. Post-IPO, this will adjust to approximately 16.07%. While a promoter holding of around 16% might be viewed as a slight red flag, the company also benefits from significant holding by institutional investors, which could contribute to positive momentum in the future.
Company Profile and Competitive Strengths
BlueStone Jewellery is a leading digital-first jewellery brand in India, providing an omnichannel retail experience through both online and offline channels. The company utilizes an in-house technology architecture to manage its end-to-end business operations.
Its competitive strengths include:
- A distinctive approach to product and design.
- Advanced manufacturing capabilities.
- Vertically integrated operations.
- A pan-India presence across Tier 1, Tier 2, and Tier 3 cities.
- Healthy unit economics.
- A founder-led company supported by an experienced and professional management team.
- The backing of marquee investors, which is considered a positive factor.
Financial Performance Overview
An analysis of BlueStone Jewellery’s financial health reveals the following figures:
| Metric | FY23 (Approx.) | FY24 (Approx.) | FY25 (Approx.) |
|---|---|---|---|
| Total Assets (₹ Crore) | 1,255 | 2,453 | 3,532 |
| Revenue / Total Income (₹ Crore) | 78,788 | 133 | 1,830 |
| Net Loss (₹ Crore) | 167 | 142 | 221 |
| Reserves & Surplus (₹ Crore) | -81 | -346 | -877 |
| Total Borrowings (₹ Crore) | 228 | 430 | 728 |
Note: The revenue figure for FY23 as stated in the transcript is exceptionally high compared to other years.
While assets have shown improvement, and revenue has also increased (with the exception of the FY23 figure), the company has been operating at a loss, which grew to ₹221 crore in FY25. Reserves and surplus remain negative, and borrowings have also increased.
On a positive note, the company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) has recently turned positive. However, key financial ratios such as Return on Equity (ROE), Return on Capital Employed (ROCE), Return on Net Worth, and Profit After Tax Margin are currently negative due to the company’s loss-making status. The Debt-to-Equity ratio stands at 0.80. The recently positive EBITDA margin indicates a potential for future profitability.
Objects of the Issue
The funds raised through this IPO, particularly the fresh issue component of over ₹800 crore, will primarily be utilized for:
- Funding Working Capital Requirements: To support day-to-day business operations and growth.
- General Corporate Purposes: For various strategic business needs.
The company intends to use these funds to fuel its growth rather than primarily for debt repayment, although it may indirectly help improve the debt-equity ratio.
Grey Market Premium (GMP) and Listing Expectations
As of August 8th, the Grey Market Premium (GMP) for this IPO is ₹16 per share. Based on the upper price band of ₹570, the expected listing price, including GMP, would be approximately ₹586. There is a chance of listing with around a 3% gain. However, the IPO is also seen listing around ₹464.
Overall, investors are advised to monitor the first and second-day subscription levels, Grey Market Premium momentum (both positive and negative directions), and general market conditions before making an investment decision for this type of IPO.
Stay Updated
Important updates regarding this IPO will continue to be provided. For any doubts or queries, feel free to leave a comment.
