IPO closes on 13 Aug'25
BlueStone Jewellery & Lifestyle Ltd
Minimum Investment
₹ 14,993 / 29 shares
Grey market premium
₹ 9 (2% premium)
Our Verdict:
Avoid
- BlueStone Jewellery & Lifestyle Ltd (BlueStone) has delivered strong revenue growth over the past three years, supported by a well-recognised brand and a rapidly expanding target market. However, despite this strong top-line performance, the company remains loss-making since inception and reported a negative Return on Net Worth (RoNW) of 24.45% in FY25.
- BlueStone is pursuing aggressive expansion, with plans to open ~290 stores over the next two years. A significant part of its network is still young—of the current 275 stores, 120 were opened in the past two years. With a large proportion of stores yet to mature and an aggressive rollout underway, profitability is unlikely in the near-to-medium term.
- Considering the sustained losses, negative returns and execution risks from rapid scale-up, we advise investors to avoid this IPO.
About the company
Founded in
22 Jul'11
Managing director
Gaurav Kushwaha
- BlueStone is India’s second-largest digital-first jewellery brand by revenue in FY24, offering an omni-channel retail experience through its website, mobile app and physical stores. The firm primarily targets a broad demographic of men and women aged 25–45 years, offering designs that appeal to both everyday wear and special occasions.
- BlueStone operates three manufacturing facilities in Mumbai, Jaipur and Surat, with a fourth facility under construction in Jaipur. Its extensive product portfolio—priced between Rs 5,000 and Rs 17 lakh—caters to consumers across diverse income brackets.
STRENGTHS
- Financial Performance: BlueStone has delivered strong growth, recording a 52% CAGR in operating revenue. The company turned EBITDA-positive in FY24, with an Adjusted EBITDA of Rs 105.42 crore, which rose further to Rs 127.8 crore in FY25.
- Extensive Retail Network: BlueStone operates 275 stores across 117 cities in 26 States and Union Territories, servicing over 12,600 PIN codes as of March 31, 2025.
- Expanding Customer Base & Loyalty: BlueStone’s unique customer base nearly doubled from 3.9 lakh in FY23 to 7.7 lakh in FY25. Additionally, its Repeat Revenue Ratio—the share of revenue from customers placing multiple orders—rose consistently to 44.61% in FY25, up from 39.83% in FY24 and 34.67% in FY23, reflecting strong brand loyalty and customer satisfaction.
- Strong In-house Manufacturing: Over 75% of jewellery is produced in-house, enabling faster scale-up, quicker time-to-market for new collections, consistent quality and tighter supply chain control.
RISK FACTORS
- Sustained Losses: BlueStone has incurred losses since inception, reporting a net loss of Rs 221.8 crore in FY25, Rs 142.2 crore in FY24 and Rs 167.2 crore in FY23. Continued losses in the near term may limit its ability to fund growth initiatives.
- Cash Flow Concerns: BlueStone recorded negative cash flows from operations in both FY25 and FY24. Persistent negative cash flows could strain liquidity, impacting business continuity and overall financial stability.
- Promoter Share Pledge: The promoter, Gaurav Singh Kushwaha, has pledged 9.2 million shares (37.6% of his pre-offer shareholding) to certain lenders. If these lenders enforce the pledge, it could dilute the promoter’s stake, potentially affecting control and business stability.
- Rising Borrowings: Total borrowings have increased from Rs 228.4 crore in FY23 to Rs 728.6 crore in FY25, primarily to fund working capital and inventory requirements. As operations expand and new stores open, higher inventory levels may be necessary to support a wider product range and meet demand. Significant increases in borrowings could adversely affect the company’s cash flows and results of operations.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 1,540.65 crore
Fresh Issue
₹ 820 crore
OFS
₹ 720.65 crore
Price range
₹ 492 - 517
Lot size
29 shares
Issue Objective
The net proceeds from the fresh issue will be utilised towards:
- Supporting the working capital needs of the company; and
- General corporate purposes.
Dates
Bidding open
11 Aug'25
Bidding close
13 Aug'25
Allotment date
14 Aug'25
Refund date
18 Aug'25
Listing
19 Aug'25
IPO Reservations
Qualified institutional buyers
>75%
Non-institutional investors
<15%
Retail individual investors
<10%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
This document has been issued by Liquide Solutions Private Limited for information purposes only. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall Liquide Life Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein.