BlueStone Jewellery IPO Day 1: BlueStone Jewellery’s IPO hit the markets on Monday, but early traction has been underwhelming. The company is aiming to raise Rs 1,540.65 crore, yet by mid-morning, the issue had been subscribed just 3 per cent.
The subscription window will stay open until August 13, with shares priced between Rs 492 and Rs 517. A listing is tentatively set for August 19.
BlueStone Jewellery : A modern brand with old-fashioned problems
On paper, BlueStone fits the profile of a new-age consumer business — a digital-first jewellery brand targeting young, design-conscious buyers. It operates 275 stores across 117 cities, while also shipping to more than 12,600 pin codes.
Major portion of the revenue comes from physical stores that indicates the company lacks asset-light scalable model that investors get attracted to in digital retail businesses.
The numbers raise questions
BlueStone has never turned a profit. In FY25, it posted a net loss of Rs 222 crore. Its borrowings have surged to Rs 729 crore, and it’s carrying Rs 1,652 crore worth of inventory nearly equal to its annual revenue.
That said, there are bright spots. Gross margins stand at 37.94 per cent, the highest in the category, and repeat customers account for nearly 45 per cent of revenue. Store economics also look promising, with most outlets turning profitable within three months of launch.
Tough comparisons in a competitive space
Against listed peers like Titan, Kalyan Jewellers, and Senco Gold, BlueStone is still finding its footing. It has the margins, but not the scale or profitability. Its Return on Net Worth (RoNW) is -24.45 per cent, while rivals are comfortably in the black. Its inventory turnover is also on the slower side, hinting at possible pressure on working capital.
BlueStone Jewellery IPO preview
Market experts remain on the fence. While the brand has built a strong offline presence and a niche among urban consumers, its financials raise red flags. Zee Business Research has flagged the issue as one to “avoid”, advising only high-risk investors to consider a long-term bet.
In short, the stock may shine someday — but it’s not sparkling just yet.
