Blue Stone Jewellery IPO: Day 1 Subscription Status, Anchor Investor Details, and GMP Update
Welcome to an in-depth analysis of the Blue Stone Jewellery IPO. This article will detail how this IPO compares to the JSW IPO, its Day 1 subscription status, the latest grey market premium (GMP) movements, and what observations can be made based on the Qualified Institutional Buyer (QIB) and High Net Worth Individual (HNI) subscriptions.
Anchor Investor Allocation for Blue Stone Jewellery IPO
Late on August 8th, the company’s anchor investor book list was released. A total of 1,349,100 equity shares, valued at approximately ₹693 crore, were allocated to anchor investors. Investors will have the opportunity to sell 50% of these shares after 30 days and the remaining 50% after 90 days. The important lock-in expiry dates for these anchor investors are September 13th and November 12th.
Several prominent names featured in the anchor investor list. Amansa Holdings Private Limited was allocated a significant 24.40% stake, followed by SBI Life Insurance with 20% and Nippon L India Trust with approximately 14.43%. Goldman Sachs received about 10.22% of the shares, while the New York State Teachers Retirement System Fund was allocated 0.72%. Other participants include Aditya Birla Sun Life (across various schemes), HDFC Life Insurance Company, Societe Generale, Mirae Asset Small Cap Funds, PGIM India Trust Private Funds, ACM Global Funds (3.228%), and Motilal Oswal Large Cap Fund. Overall, 11 mutual funds participated through 12 different schemes. Domestic Institutional Investors (DIIs) were allocated 27.27% of the shares, with the remaining going to Foreign Institutional Investors (FIIs), which is seen as a positive for the company’s long-term prospects.
Blue Stone Jewellery IPO Key Details and Dates
The Blue Stone Jewellery IPO opened today, marking the first day for applications. The application window will remain open for a second day tomorrow, and those planning to apply after a clearer picture emerges should consider doing so on August 13th, observing QIB and HNI movements. The IPO has a face value of ₹1 per share, with an upper price band of ₹517. To ensure share allocation in case of oversubscription, applying at the upper price band is recommended. A minimum of 29 equity shares must be selected when applying for one lot.
The total issue size for the IPO is approximately ₹1541 crore. This comprises a fresh issue of ₹820 crore, funds from which will go to the company, and an Offer for Sale (OFS) of ₹720 crore, which will go to promoters and existing shareholders. This is a book-building IPO, and the company’s shares will be listed on both BSE and NSE.
Here are the important upcoming dates for the Blue Stone Jewellery IPO:
- August 8th: Anchor investor allocation (₹693 crore worth of shares).
- August 11th: Important date for IPO proceedings.
- August 13th: Important date for IPO proceedings.
- August 14th: Allotment date.
- August 18th: Refund processing date.
- August 18th: Shares credited to Demat accounts.
- August 19th: Company listing date.
Application amounts vary based on investor categories:
- Retail Category: ₹14,993
- Small HNI Category: ₹2,99,020
- Big HNI Category: ₹14,53,100
Currently, the promoters’ holding stands at 16%, down from 18.28%. Over time, a significant portion of the company’s holding is expected to be with mutual funds and FIIs.
Blue Stone Jewellery IPO Day 1 Subscription Status
On its first day, the Blue Stone Jewellery IPO saw an overall subscription of 0.39 times, meaning it was 39% subscribed. This is a slightly better performance compared to the JSW IPO, which was subscribed 0.30 times (30%) on its first day.
Here’s a breakdown by investor category:
- Qualified Institutional Buyers (QIBs): Subscribed 0.57 times. For 8,939,000 equity shares offered, bids were received for 8,050,278 shares, totaling ₹263 crore. The QIB response is noteworthy.
- High Net Worth Individuals (HNIs): Subscribed 0.04 times. Against 4,469,700 equity shares offered, bids were received for 166,892 shares, totaling ₹8 crore.
- Big HNI Category: Subscribed 0.03 times, with bids for 78,561 shares against 2,979,000 shares offered.
- Small HNI Category: Subscribed 0.06 times.
- Retailers Category: Subscribed 0.39 times. Retail investors are allocated 10% of the total issue size. Against 2,979,000 equity shares, bids were received for 1,149,000 shares, amounting to ₹49 crore.
The positive response from QIBs and the overall better Day 1 subscription compared to JSW IPO suggest that the coming days, particularly the third day between 12 PM and 2 PM, will be crucial to observe how the momentum continues before making a final application decision.
Blue Stone Jewellery IPO Grey Market Premium (GMP) and Observations
As of August 11th, the Grey Market Premium (GMP) for Blue Stone Jewellery IPO is ₹9. Considering the upper price band of ₹517, a listing price of approximately ₹526 (₹517 + ₹9) is anticipated, indicating a potential listing gain of around 2%.
However, there are some important observations and potential risks to consider. The company is currently operating at a loss, and the broader market is not showing strong performance. Furthermore, the outcome of the Russia and US meeting around August 15th could significantly influence market direction. A positive outcome could lead to a good listing for Blue Stone, while a negative one might dampen prospects. Therefore, investors are advised to wait and watch, performing a thorough risk-reward analysis before making an application decision.
Stay tuned for more updates on IPOs and grey market premiums by subscribing to the channel and joining the Telegram group (link in comments). For any further doubts or queries, feel free to ask in the comments section.
