BlueStone Files DRHP For INR 1,000 Cr IPO

SUMMARY

The IPO will comprise a fresh issue of shares worth INR 1,000 Cr and an offer-for-sale component of up to 2.40 Cr equity shares

Existing investors, including Accel and Kalaari Capital, will offload their shares in the IPO

BlueStone’s net loss declined 15% year-on-year (YoY) to INR 142.2 Cr in the financial year 2023-24 (FY24), while operating revenue jumped 64% to INR 1,265.8 Cr

Omnichannel jewellery company Bluestone has filed its draft red herring prospectus (DRHP) with markets regulator SEBI for its initial public offering (IPO).

The IPO will comprise a fresh issue of shares worth INR 1,000 Cr and an offer-for-sale component of up to 2.40 Cr equity shares.

Existing investors, including Accel and Kalaari Capital, will offload their shares in the IPO. While Kalaari will sell up to 79.78 Lakh shares via two funds, Saama Capital will sell 41 Lakh shares. IvyCap Ventures will offload 31.26 Lakh shares, while Accel India will sell 30.27 Lakh shares. Iron Pillar will dump 17.53 Lakh shares

Hero Enterprise chairman Sunil Kant Munjal will also sell 40 Lakh shares via the OFS.

The company will use the fresh proceeds from the IPO to fund its working capital requirements and general corporate purposes.

Of the total fresh issue, INR 750 Cr will go towards meeting working capital requirements. The remaining INR 250 Cr will be utilised for general corporate purposes like setting up of stores, repayment/prepayment of loans, strategic initiatives, partnership and joint ventures, among others.

General corporate activities will also cover acquiring fixed assets such as furniture and fixtures, repaying franchisee liabilities, and addressing administrative, insurance, marketing, and maintenance expenses.

BlueStone’s net loss declined 15% year-on-year (YoY) to INR 142.2 Cr in the financial year 2023-24 (FY24), while operating revenue jumped 64% to INR 1,265.8 Cr.

The company also disclosed its financial performance for the first three months of FY25 (Q1 FY25). It reported a net loss of INR 52.22 Cr in Q1 FY25 on an operating revenue of INR 359.19 Cr.

Total expenses for the quarter ending June 2024 stood at INR 418.14 Cr.

Founded in 2011 by Kushwaha and Vidya Nataraj, BlueStone is an omnichannel jewellery company that offers more than 8,000 designs across rings, pendants, earrings and other products.

It owns some of its retail stores and operates the rest via a franchise model. It claims to have over 200 retail stores spread across the country.

BlueStone competes with the likes of CaratLane, GIVA, and other legacy jewellery brands. In June, the startup raised INR 100 Cr in debt funding from Neo Markets.

Overall, BlueStone has raised a total funding of over $200 Mn till date.