BlueStone Jewellery’s initial
public offering began on August 11, 2025, drawing a measured and cautious
response from the market. While such restraint is not unusual early in an IPO,
it highlights the importance of examining the underlying data and sentiment.
This analysis provides a detailed review of key metrics, valuation
perspectives, subscription figures, and expert commentary to help assess the
offering.
The BlueStone IPO: A Comprehensive Analysis of GMP Trends, Subscription Activity, and Investment Outlook
⏰ Key IPO Specifications
The issue is open from August 11
to August 13, 2025. Shares are priced in a band of ₹492–₹517 each, with a
minimum application of 29 shares (₹14,268 at the upper band). The total issue
size amounts to ₹1,541 crore, comprising ₹820 crore from a fresh issue and ₹721
crore from an offer for sale. BlueStone’s listing on the BSE and NSE is
scheduled for August 19, 2025.
📊 Grey Market Premium (GMP) Trends
Current GMP stands at ₹9–₹17,
equivalent to a 1.74%–3.28% premium over the upper price band, implying a
likely listing range of ₹526–₹534. This marks a decline from roughly 3% last
week, suggesting softening speculative interest.
What is GMP? In capital
markets, the Grey Market Premium reflects the unofficial price at which IPO
shares change hands prior to listing. A rising GMP typically signals strong
demand expectations, while a decline—such as observed here—points to more
cautious sentiment.
📉 Day 1 Subscription
Overview (as of 11:45 AM, Aug 11)
- Total Subscription: 4%
- Retail Investors: 18% of allotted quota
- High Net-Worth Individuals (HNIs): 1%
- Qualified Institutional Buyers (QIBs): 0%
(institutions often bid on the final day)
💎 Company Overview: BlueStone Jewellery
BlueStone is a leading omnichannel
jewellery retailer, combining an extensive physical store network with a strong
digital presence. It operates 275 stores across 117 cities and serves over
12,600 pin codes online. Over the past three years, the company has achieved a
revenue CAGR of 52%, reaching ₹1,770 crore in FY25. Its catalogue includes more
than 7,400 designs, with repeat customers accounting for around 44% of sales.
Despite strong top-line growth,
the company remains loss-making, with net losses widening from ₹14 crore in
FY24 to ₹222 crore in FY25. At a valuation of 4.5x sales, it is priced higher
than profitable peers like Titan. Furthermore, competitive pressure from
established brands such as Tanishq and Kalyan, as well as agile online
entrants, remains a critical challenge.
🤔 Expert Perspectives
- Subscribe: Proponents including SBI Securities
and Ventura highlight aggressive expansion, leadership in the casual
jewellery segment, and strong long-term market potential.
- Avoid: Analysts from Swastika Investmart and
INVasset point to persistent losses, elevated valuation, and inventory
risk, estimating profitability is still 2–3 years away.
- Neutral/Selective: Lakshmishree Investment
views the IPO as a high-risk, high-reward proposition suitable only for
investors with a long-term horizon (3–5 years).
💡 Strategic Insights
India’s branded jewellery sector
is projected to grow at a robust 21% annually, creating a compelling long-term
demand environment. BlueStone’s dual-channel strategy positions it well to
capture this growth if it can achieve sustainable profitability. However, its
current financial profile and valuation make it a polarizing choice.
Best Suited For Investors Who:
- Believe in the scalability of omnichannel retail.
- Are comfortable holding until at least 2027 for
potential profits.
- Want exposure to a fast-growing consumer category.
Less Suitable For Investors
Who:
- Require immediate profitability.
- Focus on short-term listing gains.
- Have low risk tolerance for loss-making companies.
Disclaimer: This analysis
is for informational purposes only and does not constitute investment advice.
GMP values are unofficial and may change before listing.
Analyst’s Note: Monitoring institutional bid activity on August 13 will be key, as QIB participation often serves as a strong market signal.
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