Jewellery retailer Bluestone has filed its draft red herring prospectus (DRHP) for an initial public offering (IPO), with an anticipated valuation between INR 12,000 crore and INR 13,000 crore. This marks a 50% surge from its recent pre-IPO valuation of INR 8,100 crore, achieved during a INR 900 crore funding round in August 2024.
The IPO comprises a fresh issue of INR 1,000 crore and an offer for sale (OFS) of shares valued at INR 2,000-2,100 crore. Investors including Accel, Kalaari Capital, and Hero Group’s Sunil Kant Munjal are among those divesting stakes. Saama Capital and Kalaari Capital will fully exit their holdings, while Iron Pillar Fund will sell one-third of its stake, and Munjal will divest half of his shareholding.
Bluestone’s valuation growth reflects a surge in investor interest in the jewellery retail sector, which has seen high-profile transactions like Tata Group’s acquisition of Caratlane founder Mithun Sacheti’s stake. Giva’s recently expanded INR 455 crore funding round further underscores this momentum. Bluestone itself reported strong financial performance, with a 64% rise in operating revenue to INR 1,266 crore for FY24. Its net loss narrowed by 15% to INR 142.2 crore during the same period.
Proceeds from the IPO will primarily address the company’s working capital needs. Bluestone’s CEO and promoter, Gaurav Singh Kushwaha, has recently acquired shares worth INR 75 crore at INR 578 per share to meet the minimum promoter contribution requirement. Kushwaha now holds a 17-18% stake in the company.
The IPO also includes divestment by significant backers like Prosus and Peak XV Partners, which supported the company in its later stages. Accel and Saama Capital, early investors since 2012, are capitalizing on the company’s growth trajectory by exiting their stakes.
Bluestone’s revenue for Q1 FY25 reached INR 348 crore, although it reported a net loss of INR 59 crore during the same period. The company plans to leverage the IPO to further strengthen its operational capabilities and expand its market footprint, aiming to capitalize on its strong brand and investor confidence.
With its impressive valuation and robust financial trajectory, Bluestone’s IPO signifies its growing influence in the jewellery retail market, setting the stage for further expansion and innovation.
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