Can you tell me about the Bluestone Jewellery IPO filing?

While IPOs may be virtually few and far between in these turbulent markets, companies are continuing to file for IPOs with a 2-3 month time frame. The latest to enter the IPO fray in India is Bluestone Jewellery. The online jewellery designer and retailer is backed by Ratan Tata in his personal capacity. Bluestone Jewellery is planning to raise more than Rs.1,500 crore through the issue, which will be a combination of a fresh issue and offer for sale (OFS).

There are several marquee names backing the company. Other from Ratan Tata, who has been one of the early investors in this company, Bluestone Jewellery has raised Rs.100 crore from other reputed private equity funds of PE funds like Accel Partners and IVY Capital. Bluestone Jewellery will dilute 10% to 12% stake in the company through the OFS route. The OFS part will not be EPS dilutive as it will only result in transfer of ownership.

In terms of the business model, Bluestone Jewellery owns online marketplace Bluestone.com. This jewellery and lifestyle portal is an agnostic platform for the display and sale of high-end jewellery to customers. Most of the products available on the platform are also designed and manufactured by Bluestone Jewellery. ICICI Securities Ltd, IIFL Securities Ltd, Jefferies and JM Financial will be the book running lead managers to the issue.

The proposed share sale is targeted to be launched in the second quarter of FY23. Kalaari Capital is one of the early backers of Bluestone Jewellery and the PE fund will offload its entire holdings in Bluestone Jewellery via the OFS. Bluestone Jewellery is targeting an indicative valuation of Rs.12,000 crore to Rs.15,000 crore. Bluestone Jewellery currently has 2 manufacturing located in Mumbai, where most of the designs are custom made.

It offers 8,000 designs with 30-day money-back guarantee which is a USP.