Jewellery Retailer BlueStone Files Draft Papers For IPO, To Issue New Shares Worth Rs 1,000 Crore
BlueStone Jewellery’s Rs 1,000 crore IPO marks its entry into the booming jewellery market, with Rs 750 crore from fresh shares allocated for working capital and corporate purposes.
Bengaluru-based jewellery retailer BlueStone Jewellery And Lifestyle filed draft papers for its initial public offering on Dec. 12. The offer will be a combination of fresh issue and offer-for-sale components, with the former being worth Rs 1,000 crore.
The Accel India, Kalaari Capital, and Sunil Munjal-backed company will be using up to Rs 750 crore from the fresh issue to fund its working capital requirements and general corporate purposes, according to the draft red herring prospectus filed with the Securities and Exchange Board of India.
Shareholders, including Kalaari Capital Partners II LLC, Saama Capital II Ltd., and Sunil Munjal, will be selling up to 2.4 crore shares via the offer for sale.
BlueStone's offer comes at a time when the IPO market as well as the jewellery industry is booming. The rapid formalisation of the Indian jewellery market has helped the sector grow at a stronger pace, pushing its market value to Rs 6.4 lakh crore as of fiscal 2024, according to Motilal Oswal.
The jewellery sector's revenue grew at an average of 8% from fiscal 2019 through fiscal 2024 due to rapid organisation of the sector. The organised market constituted 36-38% of the total jewellery market by fiscal 2024, up from 22% in fiscal 2019.
BlueStar's listed peers include Titan Co., Kalyan Jewellers India Ltd., Senco Gold Ltd., Thangamayil Jewellery Ltd., and PC Jeweller Ltd.
BlueStone Jewellers FY24 Highlights (YoY)
Revenue rose 64% to Rs 1,266 crore versus Rs 771 crore.
Ebitda stood at Rs 53 crore versus Ebitda loss of Rs 56 crore.
EBITDA margin stood at 4.2%.
Net loss of Rs 142 crore vs. loss of Rs 167 crore.
BlueStone is a loss-making company but has been narrowing the bottom-line deficiencies since fiscal 2022. As of the first quarter of the current financial year, the company reported a net loss of Rs 59 crore and a revenue of Rs 348 crore. Operating income stood at Rs 2 crore, and its margin against the top line came up to 0.6%.
The company has not paid any dividends for the quarter ending June 2024 and in fiscals 2024, 2023, and 2022.
As of June 30, the company has a cash balance of Rs 141 crore, including bank balance.
Axis Capital Limited, IIFL Capital Services Limited, and Kotak Mahindra Capital Company Limited are the book-running lead managers for the offering.
