BlueStone Jewellery is planning an IPO of Rs 1,500 crore and has enlisted the help of bankers

According to reports, BlueStone Jewellery, which is funded by Ratan Tata, plans to raise about Rs 1,500 crore via an IPO and has hired IIFL Securities, ICICI Securities, JM Financial and Jefferies as investment bankers.

The planned IPO, which would include a new issuance of equity as well as an OFS, is expected to dissolve around 12 percent of the company’s stock. The anticipated stock offering is expected to begin in the second quarter of the next fiscal year.

The corporation is looking for an unconfirmed and unfixed value level. In a few months, it will most likely file the DRHP. Existing private equity investors in BlueStone, headed by Kalaari Capital, are anticipated to sell all or part of their stakes via the OFS.

Money circulation

According to banking sources, the business, which is touted as a startup, is seeking a valuation of Rs 12,000 crore to Rs 15,000 crore. The purity of BlueStone’s costly jewelry is well-known. BlueStone.com, the company’s omnichannel fine jewelry platform, announced the opening of a jewelry production plant in Jaipur a few weeks ago. BlueStone has two current production plants in Mumbai, with a total workspace of 12,000 square feet, according to the business.

According to reports, the business established its first shop in Delhi’s Pacific Mall in 2018, followed by five more in Mumbai, Hyderabad, and Chandigarh. As sales increased, the firm began actively building around 1,500 square feet shops on main streets and around 800 square feet stores in malls, all of which were franchisee-owned and corporate-operated and required no capital investment.

BlueStone is India’s premier destination for beautiful jewelry of the highest quality and stunning designs. It has over 8,000 different styles for clients to choose from. A 30-day money-back guarantee, certified jewelry, and lifetime exchange are also available.

Further Key Takeaways

According to a Technopak analysis, the pandemic and mandatory hallmarking are expected to accelerate the underlying industry move toward organized actors.

According to the analysis, India’s organized retail jewelry market share would increase to 37 percent in 2025 from 33 percent in 2020. According to Technopak, the Indian jewelry retail market was worth $64 billion in FY20. At the moment, organized players or local jewelers dominate roughly 68 percent of the market.

Titan, which operates under the Tanishq brand, has a market capitalization of Rs 2.19 lakh crore, while Kalyan Jewellers and PC Jewellers are valued at Rs 20,767 crore and Rs 6,129 crore, respectively, among the listed firms.

Kalyan Jewellers, the sector’s newest listed business, is selling at a 32 percent discount to its IPO price of Rs 87 in March of last year.

BlueStone plans to employ 400 individuals

BlueStone, a Bengaluru-based online jewelry platform, is aiming to build its third production plant in Jaipur in the next 3-4 months, with plans to hire 400 people. For their new manufacturing plant in Jaipur, the jewelry store will be employed across several domains such as production, warehousing, logistics, and design roles as part of their development strategy.

The company’s other two production plants, with a total workspace of 12,000 square feet and a workforce of roughly 500 people, are also situated in Mumbai. BlueStone is quickly expanding its operations throughout the nation, with new warehouses and storefronts opening in a variety of towns to meet rising demand. The brand’s new production facility will help them satisfy increased demand for its goods.

Existing investors IIFL Seed Ventures Fund, Accel, Kalaari Capital, Ivycap Ventures, Iron Pillar Fund, and Saama Capital invested a total of 14.73 crores in the jewelry shop in 2020. The firm has received $70.1 million in outside capital so far.

BlueStone was founded by Vidya Nataraj and Kushwaha in 2011 and promises to send in-house-made jewelry across 25,000 postcodes in India as well as worldwide to Canada, the United States, the United Kingdom, and Australia. It also has 65 physical locations in cities including Chennai, Bengaluru, Mumbai, New Delhi, and Hyderabad.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.