BlueStone IPO To Open On Aug 11, Fresh Shares Cut 18% to INR 820 Cr

About four months after markets regulator SEBI gave the go-ahead to its IPO, omnichannel jewellery brand Bluestone has filed the draft papers to go public.

BlueStone has trimmed the fresh issue by 18% to INR 820 Cr from INR 1,000 Cr it had proposed earlier. It plans to spend about INR 750 Cr from the fresh capital generated from the IPO to fund its working capital needs.

The jewellery startup said that it needed to bridge the working capital gap for financing and replenishment of its inventory, which includes precious metals like bullion, diamond and gemstones, in its physical stores, warehouses, logistics hubs and raw material for its factories.

“As our physical store network grows, we will require additional working capital for funding inventory requirements of these new physical stores and replenishment, as well as expansion of inventory in the existing stores, as we expand presence across categories and expand merchandise selection at the store level,” read the company’s red herring prospectus (RHP).

Not just the fresh shares, the cut has been deeper in the offer-for-sale (OFS) component. The company has brought it down from 2.4 Cr shares to 1.4 Cr shares. Existing investors, including Accel, Hero Enterprise chairman Sunil Kant Munjal and Kalaari Capital, will offload their shares in the public issue.

In this, VC firm Kalaari Capital will sell up to 39.9 Lakh shares through two funds, which is nearly half of its initial selling plans. While Accel has reduced its OFS part by about 4 Lakh shares to 26 Lakhs, Munjal has cut his offloading by 51% to 19.3 Lakh shares. 

IvyCap Ventures, which initially planned to sell off 31.3 Lakh shares, has now refrained from partaking in the public float all together. 

The IPO, which is helmed by book running lead managers Axis Capital, IIFL Capital and Kotak Investment Bank, will open on August 11 and close on 13th.

The jewellery brand continued to grapple with mounting losses in the run-up to its IPO, with the losses soaring 56% to INR 221.8 Cr in FY25 from INR 142.2 Cr year back because of expansion of its retail network, distribution channels, and advertising and marketing costs.

Its operating revenue also spiked 40% to INR 1,770 Cr in FY25 from INR 1,265.8 Cr on the back of a spurt in sales, primarily growth in same-store sales in its existing outlets. 

The startup, which was founded by Gaurav Singh Kushwaha and Vidya Nataraj in 2011, is yet to register a full year of profit. The new-age jewellery brand, which competes against the likes of Caratlane, Tanishq, and a host of legacy players, offers diamond, gold, platinum and studded jewellery through its online platform and from its stores.

It had started off as an ecommerce brand and gradually branched out into the offline segment with its first store in 2018. As of March 31, 2025, BlueStone’s network had 200 company-owned stores and 75 franchisee outlets, sprawled over 6.05 Lakh sq ft altogether. 

BlueStone has raised INR 709.2 Cr so far from various institutional investors. While Accel is its largest institutional shareholder, holding 14.41% of the share capital, Hero’s Munjal comes second with 77.6 Lakh shares or 5.6% of the company.

Promoter Kushwaha holds 2.5 Cr shares or 17.71% equity of the company. In the one year to the filing of the IPO papers, he bought 1.1 Cr shares in the company from secondary transactions, rights issues and private placements.