Bluestone Jewellery and Lifestyle Limited, a prominent name in India’s fine jewellery market, is launching its Initial Public Offering (IPO) on August 11, 2025, which will remain open till August 13, 2025. The IPO is a Book Built Issue worth ₹1,540.64 Crores, comprising a Fresh Issue of ₹819.99 Crores (1.58 crore shares) and an Offer for Sale of ₹720.65 Crores (1.39 crore shares).

This IPO is a significant step for Bluestone, which has positioned itself as a leading online and offline destination for high-quality jewellery since its inception in 2011. However, despite its strong brand identity and customer reach, the company’s financial performance and valuation raise serious concerns.

IPO Pricing and Market Details

The price band for Bluestone Jewellery IPO is fixed between ₹492 and ₹517 per share. At the upper price band, the company’s market capitalisation will stand at ₹7,823.26 Crores. The lot size is 29 shares, requiring a minimum investment of ₹14,993 for retail investors. High-Net-Worth Individuals (HNIs) need to invest in at least 14 lots (406 shares) amounting to ₹2,09,902.

The company’s shares will be listed on both the BSE and NSE, with a tentative listing date of August 19, 2025. The allotment will be finalised on August 14, 2025.

Company Overview and Background

Bluestone Jewellery and Lifestyle Limited was founded with the goal of revolutionising the fine jewellery space in India by offering premium designs, superior craftsmanship, and a strong focus on customer experience. The company offers over 8000 unique jewellery designs and caters to both domestic and international customers.

The company is led by Mr. Gaurav Singh Kushwaha, a graduate of IIT Delhi, who has previously worked with Amazon Development Centre, Tavant Technologies, and Chakpak Media. His leadership has helped Bluestone gain brand recognition and customer loyalty in a crowded market.

Financial Performance Raises Red Flags

While Bluestone has shown substantial growth in revenues, its bottom line remains in deep red.

Key financials are as follows:

• Revenue from operations grew from ₹7,878.94 Million in FY23 to ₹18,300.36 Million in FY25

• EBITDA improved to ₹1,331.97 Million in FY25 from a negative ₹388.65 Million in FY23

• However, Profit After Tax (PAT) remained negative:

  • FY25: ₹-2,218.37 Million

  • FY24: ₹-1,422.36 Million

  • FY23: ₹-1,672.44 Million

Despite better revenues and operating profits, Bluestone is yet to turn profitable, which presents a critical risk for prospective investors.

Valuation Metrics and Investor Caution

The valuation metrics for Bluestone are also concerning:

• Pre-issue EPS: ₹-79.74

• Post-issue EPS: ₹-14.65

• Pre-issue P/E ratio: -6.48x

• Post-issue P/E ratio: -35.29x

• Industry average P/E: 55x

Other performance indicators also signal inefficiency in capital and asset usage:

• ROCE (Return on Capital Employed): -3.67%

• ROE (Return on Equity): -34.53%

• RoNW (Return on Net Worth): -24.45%

These negative ratios suggest the company is operating at a financial disadvantage, which makes the IPO fully priced and not attractive for conservative or even moderate-risk investors.

Grey Market Premium (GMP) and Market Sentiment

As of August 6, 2025, the Grey Market Premium (GMP) of Bluestone Jewellery IPO is ₹0, with an expected listing price equal to the issue price of ₹517. This lack of any premium suggests that investor sentiment is lukewarm, and listing gains are highly unlikely.

It is also worth noting that GMP is an unofficial indicator and does not guarantee price movements post-listing. However, the flat GMP does reflect market scepticism around the IPO.

Use of IPO Proceeds

Bluestone plans to utilise the net proceeds from the IPO as follows:

1. ₹750 Crores will be used to meet working capital requirements, which may include inventory expansion, vendor payments, and supply chain enhancements.

2. The remaining funds will be allocated towards general corporate purposes.

While the use of funds is reasonable, the lack of profitability makes investors question when and how the returns will materialise.

How to Check Allotment Status

The IPO allotment status will be available on August 14, 2025, and can be checked using the following steps:

1. Visit the KFin Technologies Limited IPO allotment page

2. Select Bluestone Jewellery and Lifestyle Limited IPO

3. Enter your Application Number, PAN, or DP Client ID

4. Submit to view your allotment result

If allotted, shares will be credited to the demat account on or before the listing date.

Risks and Investor Concerns

Investors should consider the following before applying:

• Consistent financial losses despite revenue growth

• Flat GMP suggesting no investor interest for listing gains

• High valuations not justified by earnings or profitability

• Negative return ratios reflecting poor capital efficiency

These red flags outweigh the company’s brand value and industry recognition, making this IPO a high-risk proposition.

Final Verdict and Recommendation

Despite being a popular jewellery brand with growing revenues, Bluestone Jewellery and Lifestyle Limited has yet to post a single profitable year. The IPO is fully priced, and the flat GMP signals no immediate interest from the market.

Disclaimer
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

The Upcoming IPOs in this week and coming weeks are Mahendra Realtors and Infrastructure, Bluestone Jewellery and Lifestyle, Icodex Publishing Solutions, Star Imaging and Path Lab, Medistep Healthcare, ConnPlex Cinemas, ALL Time Plastics, JSW Cement, Sawaliya Foods Products, ANB Metal Cast.

The Current active IPO are Parth Electricals & Engineering, Jyoti Global Plast, Essex Marine, Aaradhya Disposal Industries, BLT Logistics, Bhadora Industries, Highway Infrastructure.

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