BlueStone Jewellery files DRHP with SEBI to raise ₹1,000 crore via fresh issue, OFS; Check IPO details | Stock Market News

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

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 offer-for-sale.

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 entire shareholding.

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.

The proposed IPO is a combination of a fresh issue of shares worth ₹1,000 crore and an offer for sale (OFS) of up to 2.4 crore equity shares by selling shareholders, according to the draft red herring prospectus (DRHP) filed on Wednesday.

Those selling shares through the OFS are — Kalaari Capital Partners II, LLC, Saama Capital II, Ltd and Sunil Kant Munjal (and other partners of Hero Enterprise Partner Ventures) and other selling shareholders.

Proceeds from the fresh issue to the extent of ₹750 crore will be used to fund its working capital requirements and general corporate purposes. 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.

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. The company operates three manufacturing facilities in Mumbai, Jaipur, and Surat.

BlueStone is positioning itself as a leading contender alongside listed giants such as Titan’s Tanishq brand, Kalyan Jewellers, and the newly public Senco Gold. Senco – the latest listed entity in the sector, is currently trading at a valuation of ₹5,908 crore, which is a 141 per cent premium to its IPO price in July last year.

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 the report, 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 FY24 from ₹770.73 crore in FY23. For the six months ended June 2024, revenue from operations stood at ₹348.24 crore.