BlueStone, a prominent player in India’s jewellery retail market, has taken a big step forward by filing its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company is gearing up to raise INR 1,000 crore through its much-anticipated initial public offering (IPO). This move is not just about raising funds; it’s a bold signal of BlueStone’s ambition to expand its footprint and solidify its position in a fiercely competitive market.
BlueStone IPO Structure – Fresh Shares and Major Stake Sales
The IPO will include two key components: a fresh issue of shares and an offer-for-sale (OFS). The OFS is set to grab significant attention, as early investors like Accel, Saama Capital, Kalaari Capital, and Sunil Kant Munjal (associated with the Hero Group) will offload a combined 24 million shares. Bluestone is eyeing a valuation somewhere between INR 12,000 to 13,000 crore — a figure that underscores its confidence in its growth potential.
For investors keeping tabs on the DRHP, the mix of fresh capital and strategic stake sales hints at a broader strategy. While the fresh issue will likely fuel working capital and expansion efforts, the exits by early backers paint a picture of long-term bets paying off.
BlueStone Financial Performance
When it comes to the numbers, Bluestone has plenty to showcase. The company saw a 64% jump in operating revenue for FY24, now at INR 1,266 crore. Meanwhile, net losses have narrowed, dropping by 15% to INR 142.2 crore.
Zooming into Q1 FY24, Bluestone posted INR 348 crore in operating revenue, though it still reported a net loss of INR 59 crore. While profitability remains a work in progress, the revenue growth trajectory suggests the company is finding its stride in a competitive market.
These numbers reflect more than just growth; they tell a story of a company learning to adapt and optimize even as it scales.
Investors Cashing In
BlueStone’s journey has been powered by venture capital, with Accel and Saama Capital among its earliest supporters. Accel, which holds a 15% stake, and Saama Capital, which owns 3%, plan to exit fully through the IPO.
Others are trimming their stakes too. Kalaari Capital will exit entirely, while Iron Pillar Fund and Sunil Kant Munjal have more measured plans, with the former selling a third of its holdings and the latter nearly half.
These moves highlight Bluestone’s evolution from a startup into a mature, scalable business. For long-time investors, this IPO is an opportunity to cash out after over a decade of backing.
Founder’s Bet: Doubling Down on Bluestone
Amid the buzz, one move stands out — Founder and CEO Gaurav Singh Kushwaha’s decision to invest INR 75 crore in the company ahead of the filing. Buying shares at INR 578 each, Kushwaha reinforced his commitment and ensured compliance with the promoter contribution rules for the IPO.
Post-investment, his stake in BlueStone hovers around 17-18%. For stakeholders, this signals confidence — a clear vote of trust from the person who knows the company best.
Key Investor Takeaways
- Valuation: Targeting INR 12,000 to 13,000 crore.
- Revenue Growth: A striking 64% rise in FY24.
- Founder’s Commitment: Gaurav Singh Kushwaha’s recent investment signals confidence.
- Investor Exits: Early backers like Saama and Kalaari Capital are cashing out.
For investors, the BlueStone IPO isn’t just another offering; it’s a chance to bet on a company that’s navigating its way to market leadership. With strong revenue growth, reduced losses, and a visionary founder at the helm, Bluestone’s market debut promises to be one of the most closely watched events in the retail sector. For more information related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.
