BlueStone Submits a DRHP for an IPO for INR 1,000 Cr

The omnichannel jewellery business Bluestone has submitted its first initial public offering (IPO) draft red herring prospectus (DRHP) to market watchdog SEBI. An offer-for-sale component of up to 2.40 Cr equity shares and a new issue of shares valued at INR 1,000 Cr will make up the IPO. During the IPO, current investors Accel and Kalaari Capital will sell their shares. Saama Capital would sell 41 lakh shares, while Kalaari will sell up to 79.78 lakh shares through two funds. Accel India will sell 30.27 lakh shares, and IvyCap Ventures will sell 31.26 lakh shares. 17.53 lakh shares would be dumped by Iron Pillar. Sunil Kant Munjal, the chairman of Hero Enterprise, would also sell 40 lakh shares through the OFS.

The issue's book-running lead managers are Kotak Mahindra Capital Company, IIFL Capital Services, and Axis Capital. It is suggested that the equity shares be listed on both the BSE and the NSE.

How Company Plans to Utilise Proceeds

The company's working capital needs and other corporate goals will be funded with the new IPO revenues. INR 750 Cr of the entire new issue will be used to cover working capital needs. The remaining INR 250 Cr will be used for a variety of general business objectives, including partnerships and joint ventures, strategic initiatives, shop openings, loan repayment and prepayment, and more. Purchasing fixed assets like furniture and fixtures, paying back franchisee debts, and handling marketing, maintenance, insurance, and administrative costs are all included in general corporate operations.

In the fiscal year 2023–2024 (FY24), BlueStone's operating revenue increased 64% to INR 1,265.8 Cr, while its net loss decreased 15% year over year (YoY) to INR 142.2 Cr. Additionally, the business revealed its financial results for the first three months of FY25 (Q1 FY25). In the first quarter of FY25, it reported a net loss of INR 52.22 Cr on INR 359.19 Cr in operating revenue. INR 418.14 Cr was spent in total for the quarter that ended in June 2024. 

How Brand Operates?

BlueStone, an omnichannel jewellery firm founded in 2011 by Kushwaha and Vidya Nataraj, offers over 8,000 designs for rings, pendants, earrings, and other items. Some of its retail locations are owned by it, while the others are run as franchises. It asserts that it has more than 200 retail locations nationwide. BlueStone has competition from established jewellery businesses such as GIVA and CaratLane. Neo Markets provided the business with INR 100 Cr in debt capital in June. To date, BlueStone has raised more than $200 million in total fundraising.

Prior to delaying its initial plans to go public in 2022, the company raised money from private equity (PE) firms. In the world's second-largest market for gold jewellery after China, BlueStone is establishing itself as a major player alongside listed behemoths like Titan's Tanishq brand, Kalyan Jewellers, Senco Gold, and Tribhovandas Bhimji Zaveri, among others.

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StartupTalkyNitin Konde