BlueStone files DRHP with SEBI to raise Rs 1,000 crore through IPO

From the raised funds, Rs 750 crore is to be allocated for working capital and corporate purposes

Mumbai: Omnichannel jewellery brand BlueStone Jewellery and Lifestyle has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO) aimed at raising Rs 1,000 crore.

The IPO will consist of a fresh issue of shares worth up to Rs 1,000 crore, alongside an offer for sale of 2,39,86,883 equity shares by existing shareholders. These include Kalaari Capital Partners II, which will sell up to 70,73,980 shares; Saama Capital II, offering up to 41,00,970 shares; and Sunil Kant Munjal and other partners of Hero Enterprise Partner Ventures, who will sell up to 40,00,000 shares.

The company plans to use Rs 750 crore of the raised funds from the fresh issue to meet its working capital needs and for general corporate purposes.

The IPO will be conducted through the book-building process, with a minimum of 75% of the net offer allocated to qualified institutional buyers. Non-institutional investors will be allocated up to 15%, while retail individual investors will receive no more than 10% of the offer, according to the company.

Bluestone Revenue Update

BlueStone Jewellery and Lifestyle posted an operating revenue of Rs 348 crore for the quarter ending June 2024 (Q1 FY25), according to its draft red herring prospectus (DRHP). The company reported a net loss of Rs 59.2 crore during the same period, although the IPO documents did not include figures for Q1 FY24.

For the full financial year 2023-24 (FY24), BlueStone’s net loss narrowed by 15% year-on-year (YoY) to Rs 142.2 crore. Operating revenue, however, saw a significant increase, rising 64% to Rs 1,265.8 crore.

In Q1 FY25, the company’s total expenses amounted to Rs 484.4 crore. Employee benefit expenses were Rs 41.7 crore, while advertising and marketing costs stood at Rs 42.4 crore. The largest expense was the procurement of raw materials, which totaled Rs 417.1 crore during the quarter.

BlueStone had 203 stores at the end of Q1 FY25. It plans to open 290 additional new stores between FY25 and FY27 in Tier II and Tier III cities. The company currently has a presence in 86 cities.

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