Market participants face potential financial losses following Bluestone's reduction in IPO valuation, inquiring investors in dismay.
Bluestone Jewellery, a digital-first omni-channel jewellery retailer, has announced its initial public offering (IPO). The company, which is the second largest digital-first jewellery brand in India by revenue, is expected to list on August 19, 2025.
The IPO size is ₹1,540.65 crore, with a fresh issue of ₹820 crore and an Offer for Sale (OFS) of existing shares worth ₹720.65 crore. The share price band has been set between ₹492 and ₹517 per share, with a grey market premium (GMP) currently at ₹9 above the upper price band, implying an estimated listing price around ₹526 per share. This suggests a potential listing gain of approximately 1.74% over the issue price for investors, including late-stage holders selling in the OFS.
However, significant gains may be limited immediately post-IPO, and actual returns for late-stage investors will depend on their purchase price and post-listing market performance. The modest GMP premium means that larger longer-term returns will be contingent on Bluestone’s financial performance and market conditions after listing.
It is worth noting that Bluestone has not generated profits since inception, which may temper investor enthusiasm and price appreciation post-IPO. Some late-stage investors who joined Bluestone's cap table in the last year may be facing potential losses.
Meanwhile, Tata Capital, another Indian financial services company, has filed for an IPO and has been given a $16-billion tag. The context of these IPO filings is not directly related to Bluestone's IPO valuation or the potential losses of late-stage investors.
Elsewhere, Playbook Partners leads the $30-million Series C round for Renee Cosmetics, a beauty and wellness brand. The IPO size reduction for Bluestone Jewellery and the reasons behind it are not explained in this article. It is unclear whether the reduction was voluntary or due to market conditions.
In the world of startups, early-stage investors are often the ones to reap the biggest rewards. In the case of Bluestone, early-stage investors including Saama Capital, Accel Partners, and Kalaari Capital are expecting a multi-bagger return. The exact valuation of Bluestone after its IPO is not mentioned in this article.
In summary, late-stage investors could see small immediate gains around the IPO listing price based on current market indications, but larger longer-term returns will depend on Bluestone’s financial performance and market conditions after listing. The company's lack of profitability since inception may temper investor enthusiasm, and the IPO size reduction for Bluestone Jewellery, while not explained in this article, could potentially impact the returns for late-stage investors.
Investors may expect a potential listing gain of approximately 1.74% over the issue price for Bluestone Jewellery's IPO, but larger returns will depend on the company's financial performance and market conditions after listing. The company's continued lack of profitability since inception could temper investor enthusiasm and impact the returns for late-stage investors.
