Highlights
Bluestone Jewellery and Lifestyle has facilitated secondary share transactions amounting to Rs 443 crore between February and September 2024. This has allowed early investors to partially exit while new institutional funds can enter in anticipation of the forthcoming IPO, as stated in the Red Herring Prospectus (RHP).
Key Stake Transfers Involving Institutional Investors
Iron Pillar Fund and Kalaari Capital divested portions of their stakes to 360 One, Peak XV, and Steadview Capital through off-market agreements. In February 2024, Iron Pillar sold 3.26 lakh shares to 360 One Large Value Fund for Rs 103 crore, establishing a share price of Rs 3,149 for Bluestone. Later, in September, Kalaari executed two consecutive secondary sales. On September 02, it transferred 4.07 lakh shares to Peak XV Partners for Rs 220 crore. Subsequently, on September 26, it sold 2.22 lakh shares to Steadview Capital for Rs 120 crore. Both transactions were priced at Rs 5,403 per share.
IPO Valuation and Size Adjustments
These secondary transactions were previously disclosed in the company’s Draft Red Herring Prospectus (DRHP) filed in December 2024. Bluestone is now aiming for a valuation of approximately Rs 7,800 crore in its upcoming initial public offering. In the revised RHP, Bluestone adjusted its IPO size, lowering the fresh issue from Rs 1,000 crore to Rs 820 crore, and reducing the Offer for Sale from 2.4 crore shares to 1.39 crore shares.
Investors Participating in the Public Offer
Investors such as Accel, Saama Capital, Kalaari Capital, Iron Pillar, and Sunil Kant Munjal (Hero Enterprise) are set to partially exit through this public offer. The company, founded in 2011 by Gaurav Singh Kushwaha, currently operates 275 retail outlets across more than 80 cities and reported a revenue of Rs 1,770 crore for FY25, marking a significant 40% year-on-year increase. However, its losses expanded by 56%, reaching Rs 218 crore. The IPO is set to launch on August 11, with anchor bidding commencing on August 8. Axis Capital, Kotak Mahindra Capital, and IIFL Capital are managing the issue.