BlueStone makes muted market debut after tepid IPO demand

BlueStone Jewellery & Lifestyle Ltd. stumbled out of the gate on Tuesday, making a weak debut on the Indian bourses despite a Rs 1,540.65 crore initial public offering (IPO) that had drawn a fair amount of institutional interest.

Shares opened at Rs 510 on the National Stock Exchange, down 1.35% from the issue price of Rs 517. On the Bombay Stock Exchange (BSE), the stock listed even lower at Rs 508.80, a 1.59% discount.

The muted reception contrasts sharply with India’s recent run of buzzy consumer internet listings. Nykaa was subscribed over 80 times, Zomato 38 times, and Mamaearth 7.6 times.

The tepid showing capped an offering that received only moderate demand. BlueStone’s IPO, open between August 11 and 13, was subscribed 2.72 times overall, with bids for 4.46 crore shares against 1.63 crore available. Qualified institutional buyers drove most of the interest, subscribing 4.25 times their quota, while retail investors managed 1.38 times. Non-institutional investors, often key to frothy debuts, subscribed just 0.57 times.

Founded as an online jeweller, BlueStone has built a significant omnichannel presence, operating 275 stores alongside its digital storefront. Its offerings span rings, earrings, necklaces, solitaires, bangles, bracelets, and chains. The company competes with a mix of digital-first peers like CaratLane and entrenched brick-and-mortar brands such as Titan’s Tanishq, Kalyan Jewellers, and Senco Gold.

The Gaurav Kushwaha-led company had initially filed its draft IPO papers in December last year, offering a mix of fresh issue of shares worth up to Rs 1,000 crore and an offer for sale of up to 2.39 crore shares. However, it later trimmed its IPO size. The company had set a price band of Rs 492 to Rs 517 per share.

Financially, BlueStone has shown strong top-line momentum, but profitability remains elusive. For the year ended March 2025, revenue rose more than 40% to Rs 1,830.04 crore from Rs 1,303.49 crore a year earlier. It posted a net loss of Rs 222 crore, weighed down by costs tied to its aggressive expansion.

BlueStone’s IPO valued the company at around Rs 7,800–8,100 crore, putting it in the same ballpark as Titan’s CaratLane. The high valuation, combined with cooling enthusiasm for consumer internet bets, likely dampened secondary market appetite.