BlueStone Jewellery IPO subscribed 44% on Day 2 so far amid tepid demand

The initial public offering (IPO) of BlueStone Jewellery and Lifestyle, which opened for bidding on Monday, continued to witness subdued demand on the second day. The company is offering shares in the price band of Rs 492-517 apiece, with a lot size of 29 equity shares and in multiples thereafter. The issue will close for subscription on Wednesday, August 13.

As of 1:27 pm on Tuesday, the IPO had received 73,26,589 bids against 1,65,14,421 shares on offer, translating to an overall subscription of 44 per cent. The qualified institutional buyers (QIB) portion was subscribed 57 per cent, the retail segment 64 per cent, while the non-institutional investor (NII) category saw just 6 per cent subscription.

BlueStone aims to raise Rs 1,540.65 crore via the IPO, comprising a fresh issue of Rs 820 crore and an offer-for-sale (OFS) of up to 1,39,39,063 equity shares worth Rs 720.65 crore. Proceeds will be used to fund working capital requirements and for general corporate purposes.

The Bengaluru-based company manufactures and sells diamond, gold, platinum and studded jewellery under its flagship brand, BlueStone. It operates 275 stores across 117 cities in 26 states and Union Territories, serving over 12,600 PIN codes as of March 31, 2025.

Ahead of the issue, BlueStone raised Rs 693.3 crore from 20 anchor investors, allocating 1.34 crore shares at Rs 517 apiece. Its anchor book included names like Amansa Holdings, Goldman Sachs, Societe Generale, Amundi Funds, SBI Life Insurance, Nippon Life India, Aditya Birla Sun Life AMC, HDFC Life Insurance, Mirae Asset and DSP Mutual Fund.

For FY25, BlueStone reported a net loss of Rs 221.84 crore on revenue of Rs 1,830.04 crore, compared with a loss of Rs 142.24 crore on revenue of Rs 1,303.49 crore in FY24. At the IPO price, its market capitalisation (m-cap) stands at Rs 7,823.26 crore.

Of the net offer, 75 per cent is reserved for QIBs, 15 per cent for NIIs and the remaining 10 per cent for retail investors.

In the grey market, the company was last commanding a premium of Rs 5 per share, indicating listing gains of just 0.97 per cent.

Axis Capital, Kotak Mahindra Capital Company and IIFL Capital Services are the book-running lead managers to the issue, while Kfin Technologies is the registrar. The stock will debut on BSE and NSE on August 19.