BlueStone Jewellery files DRHP with SEBI to raise ₹1,000 crore via fresh issue, OFS; Check IPO details
- BlueStone Jewellery IPO: The IPO of India's second-largest digital-first jewellery brand combines a fresh issue of shares worth ₹1,000 crore with an offer for sale of 2.4 crore equity shares by the selling shareholders.
BlueStone Jewellery filed preliminary draft papers with the capital markets regulator, the Securities and Exchange Board of India (SEBI), on Thursday, December 12, 2024, to raise funds through an initial public offering (IPO). BlueStone Jewellery and Lifestyle offers contemporary lifestyle diamond, gold, platinum, and studded jewellery under its flagship brand ‘BlueStone’.
The Bengaluru-based online-first jeweller is backed by Tata Group Chairman Ratan Tata and domestic brokerage platform Zerodha's co-founder Nikhil Kamath. It is also backed by Accel India, Saama Capital, Kalaari Capital, and Hero Group's Sunil Munjal, who are looking to divest 24 million shares.
BlueStone Jewellery IPO Details
According to the draft red herring prospectus (DRHP) filed to the market regulator, the proposed IPO of the country's second-largest digital-first jewellery brand combines a fresh issue of shares worth ₹1,000 crore with an offer for sale (OFS) of up to 2.4 crore equity shares by the selling shareholders.
Accel India, Saama Capital, Kalaari Capital Partners, IvyCap Ventures Trust, Iron Pillar Fund, and Sunil Kant Munjal (and other partners of Hero Enterprise Partner Ventures) will be the selling shareholders in the OFS. Saama Capital II, Kalaari Capital Partners II, Kalaari Capital Partners Opportunity Fund, and IvyCap Ventures Trust – Fund 1 plan to exit Bluestone Jewellery by selling their shareholding.
The company has 104 public shareholders, collectively holding a 26.82 per cent stake in its equity. Among the prominent investors are Accel India, Sunil Munjal (along with other partners of Hero Enterprise Partner Ventures), Kalaari Capital, 360 One, Peak XV, MIH Investments, Samma Capital, Steadview, Iron Pillar, IvyCap Ventures, Access India Capital, and Think Investments, among others.
Promoters hold 18.47 per cent of the company's shares, including Gaurav Singh Kushwaha (17.81 per cent shares). The remainder, 81.53 per cent, is owned by several public shareholders. According to reports, Accel India is the largest shareholder among investors, with a 17.12 per cent stake.
Axis Capital, IIFL Capital Services, and Kotak Mahindra Capital Company are the book-running lead managers to the issue. The equity shares are proposed to be listed on the BSE and the NSE. Proceeds from the fresh issue to ₹750 crore will fund its working capital requirements and general corporate purposes.
According to reports, Accel and Saama Capital are BlueStone’s earliest backers. While Accel holds around 15 per cent stake in BlueStone, Saama Capital holds three per cent stake. Growth stage investor Iron Pillar Fund will sell a third of its holding, while Munjal is divesting almost half of his holding in BlueStone.
BlueStone Jewellery Company Details
BlueStone, founded in 2011 by Gaurav Singh Kushwaha in Bangalore, is one of India's largest e-commerce portals for fine jewellery. Since then, it has become a leading name among leading jeweller retailers nationwide. BlueStone has a network of 203 stores across 86 cities in 26 states and Union Territories, covering over 12,600 PIN codes across India as of June 30, 2024.
Expanding its retail footprint, the company ventured into the offline realm with its debut store in Delhi's Pacific Mall in 2018 and expanding to five additional locations across Mumbai, Hyderabad, and Chandigarh. The company also operates three manufacturing facilities in Mumbai, Jaipur, and Surat.
The company initially planned to go public in 2022 but postponed the plans and instead raised funds from private equity (PE) firms. BlueStone is positioning itself as a leading contender alongside listed giants such as Titan's Tanishq brand, Kalyan Jewellers, Senco Gold, and Tribhovandas Bhimji Zaveri, among others in the world's second-largest market for gold jewellery after China.
Last year, BlueStone attracted ₹550 crore in investments from a mix of longstanding and new investors, such as Nikhil Kamath, Ranjan Pai, Amit Jain, Deepinder Goyal, and 360 One, achieving a net valuation close to $440 million. This followed a $30 million funding round in 2022 led by Sunil Kant Munjal of Hero Enterprise, which, according to reports, valued the company at $410 million.
On the financial front, the company's revenue from operations increased 64.24 per cent to ₹1,265.84 crore in the financial year 2024-24 (FY24) from ₹770.73 crore in FY23. For the six months ended June 2024, the revenue from operations stood at ₹348.24 crore, with a net loss of ₹59 crore.
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