Bluestone Jewellery IPO Day 3: issue booked nearly 2.5x, check latest GMP & allotment date

The initial public offering (IPO) of Bluestone Jewellery & Lifestyle managed to sail through during the third and final day of the bidding process, thanks to the QIB push. The issue was booked around 40 per cent on the first day and ended day two with nearly 70 per cent subscription.

BlueStone Jewellery & Lifestyle is selling its shares in the price band of Rs 492-517 apiece. Investors can apply for a minimum of 29 shares and its multiples thereafter. It is looking to raise Rs 1,540.65 crore via IPO, which includes a fresh share sale of Rs 820 and an offer-for-sale (OFS) of up to 1,39,39,063 equity shares worth Rs 720.65 crore.

According to the data, the investors made bids for 4,17,72,847 equity shares, or 2.53 times, compared to the 1,65,14,421 equity shares offered for the subscription by 2.40 pm on Wednesday, August 13, 2025. The bidding for the issue, which kicked-off on Monday, August 11, shall conclude today.

The allocation for qualified institutional bidders (QIBs) was subscribed 4.08 times, while the portion reserved for retail investors saw a subscription of 1.13 times. Allocation for non-institutional investors (NIIs) was subscribed only 46 per cent as of the same time.

Bengaluru-based BlueStone Jewellery and Lifestyle manufactures and provides diamond, gold, platinum and studded jewellery under its flagship brand, BlueStone. It has a pan-India presence with 275 stores across 117 cities in 26 States and Union Territories in India, as of March 31, 2025, servicing over 12,600 PIN codes across India.

The grey market premium (GMP) of BlueStone Jewellery and Lifestyle has seen a sharp correction on the back of muted bidding. Last heard, the company was commanding a no premium in the unofficial market, suggesting a flat listing for the investors. The GMP stood around Rs 16, before the issue had opened for bidding.

Analysts had a mixed view on this issue. Some suggested subscribing to the issue citing its market share, omni-channel presence, diversified portfolio, expansion plans and others. However, high debt, consistent loss making nature of business, high inventory cost and stretched valuations kept others skeptical.

BlueStone’s IPO comes with promise but also caution. Jewellery retail is typically low-margin and capital-intensive, and BlueStone’s 6–7x EV/Sales valuation looks expensive unless backed by explosive growth and profitability. It is aggressively expanding offline, targeting 300+ stores, which keeps costs high and may pressure cash flows in the near term, said Lakshmishree Investment.

"While its omnichannel model and tech-driven offerings are strong long-term levers, short-term volatility remains a risk. Investors should be aware that this is still a loss-making business with a premium valuation. Risk-takers may consider subscribing to the IPO, banking on future scalability. Conservative investors are better off waiting to see how the company performs post-listing," it said.

For the financial year ended on March 31, 2025, Bluestone Jewellery reported a net loss of Rs 221.84 crore with a revenue of Rs 1,830.04 crore. The company clocked a net loss of Rs 142.24 crore with a revenue of Rs 1,303.49 crore for the year 2023-24. The market capitalization of BlueStone Jewellery IPO stands at Rs 7,823.26 crore at the IPO price.

It is India’s second-largest digital-first omni-channel jewellery brand, backed by strong in-house tech, design, and supply chain integration. High inventory levels and seasonal business cycles present working capital and margin risks, said Swastika Investmart.

"The P/B ratio is 2.01 times, indicating a moderately priced offering on book value. Avoid for now. Despite strong brand backing and aggressive expansion, BlueStone is still loss-making, has high inventory exposure, and faces tough competition," it added.

Bluestone Jewellery raised Rs 693.3 crore from 20 anchor investors as it finalised allocation of 1.34 crore shares at Rs 517 apiece. Bluestone Jewellery has reserved 75 per cent of the net offer for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will get 15 per cent of the allocations. Retail investors will have the remaining 10 per cent of the issue.

Axis Capital, Kotak Mahindra Capital Company and IIFS Capital Services is the book-running lead manager of the BlueStone Jewellery IPO, while Kfin Technologies is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE on Tuesday, August 19.