Bluestone Jewellery IPO Subscription Closed At 2.7x: Check GMP, Subscription & More

The D2C new-age company, BlueStone Jewellery, saw its IPO subscription trend and closed at 2.7 times on day 3. The IPO size is ₹1,540.65 crore, including a fresh issue worth ₹820 crore and an offer for sale of ₹720.65 crore. The investors' sentiments appear to be cautious, which is evident from low subscriptions and muted GMP. As of 5:45 PM, August 13, 2025, the GMP is ₹2 as compared to ₹2.5 yesterday, as per Chittorgarh.com. In this blog, you’ll find a breakdown of BlueStone’s business model, IPO details, strengths and risks, industry outlook, peer comparisons, valuation insights, and more, so you can make a better-informed investment decision.

IPO Overview

• IPO Date: August 11 to August 13, 2025
• Total Issue Size: ₹1,540.65 crore
• Price Band: ₹492 to ₹517 per share
• Lot Size: 29 shares per lot
• Tentative Allotment Date: August 14, 2025
• Listing Date: August 19, 2025 (Tentative)
• Subscription Status: Closed at 2.7 times.
• GMP: The GMP for Bluestone Jewellery IPO is ₹2, according to Chittorgarh.com (as of August 13).
  Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

Highlight of Day 2 of the IPO

After a muted demand on day 1 with just 39% subscription, on day 2, BlueStone IPO’s subscriptions reached 65% with retailers leading with 73% of their quota, QIBs with 85%, and Non-Institutional Buyers with 23%. The GMP trend is also dipping from ₹9 on the opening day to ₹2.5 on day 2.

Highlight of Day 1 of the IPO

On day 1, BlueStone IPO was subscribed 39% with retailers leading with 57% of their quota and QIBs with just 4%. Started with ₹35 on August 6, the GMP was closed at ₹9 on day 1, showing a potential listing gain of 1.74% on the issue price.

How does BlueStone Jewellery Make Money?

BlueStone Jewellery and Lifestyle Ltd crafts and sells contemporary jewellery, think rings, necklaces, bracelets and more, across diamond, gold, platinum, and studded variants. The brand has carved out a space serving younger, aspirational buyers (25-45 years old) who want more than just tradition, discovering designs via social platforms and online. With 275 stores in 117 cities and deliveries to over 12,600 postal codes, the company marries digital-first branding with physical presence. Its own factories help control quality, while tech-backed inventory management makes sure popular pieces stay available, yet over 93% of sales are still from stores.

Objectives of the IPO

• ₹750 crore from the fresh issue will support working capital, mainly funding inventory (jewellery stock) and day-to-day expenses.
• Any remaining fresh issue funds are earmarked for general corporate purposes.
• ₹720.65 crore from the Offer for Sale goes directly to early investors exiting, this part doesn’t help the company’s growth.

Strengths:

• Highest gross margins in the business: 37.94%. That means the company keeps nearly ₹38 on every ₹100 of jewellery it sells, before paying salaries, rent, or marketing.
• Rapid store and customer growth: Store count jumped by 33.2% per year, while customer base grew 40.5% annually (FY23–FY25) to nearly 7.7 lakh unique buyers.
• Repeat buyers contribute 44.61% of revenue, showing strong retention.
• Studded jewellery (67.88% of sales) delivers higher profit per item.
• Quick break-even: 3 out of 4 new stores turn profitable in just three months.

Risks:

• Has never made a profit: Loss of ₹222 crore in FY25 and negative cash flow from operations signals ongoing financial strain.
• Big inventory risk: Sitting on ₹1,652 crore of stock (93% of annual revenue), which could lead to storage costs or stale products.
• Heavy reliance on debt: Borrowings have ballooned to ₹729 crore, up 78.6% in two years.
• Gold and diamond price swings hit hard (material cost is 101.74% of materials consumed).
• Despite being digital-first, 93% of revenue still comes from offline stores, which means higher fixed costs and vulnerability to local downturns.

For detailed information, visit Bluestone Jewellery’s IPO page.

It's worth noting that Bluestone has cut down the IPO size (fresh issue) to ₹820 crore, against earlier plans of raising ₹1,000 crore. Subsequently, the offer for sale was also trimmed down to 1.39 crore shares, against 2.4 crore shares proposed earlier.

Peer Comparison

• BlueStone has negative Return on Net Worth (RoNW) at -24.45%, meaning it loses money for every rupee investors put in. Peers like Titan, Kalyan, Senco, Thangamayil, and PC Jeweller all post positive returns between 8–29%.
• Gross margin is industry-high (37.94%), way better than Titan (21.5%) and Kalyan (13.1%).
• Inventory turnover (1.34) is slower than most listed peers, which means BlueStone takes longer to sell its stock.
• Its store count of 275 is dwarfed by Titan’s 3,312, but higher than Senco (175), Thangamayil (63), and PC Jeweller (51).
• Sales at ₹1,770 crore put it at the small end of the listed spectrum.

Source: RHP

IPO Valuation

BlueStone’s price-to-sales (P/S) ratio stands at 4.83, which means investors are paying nearly ₹4.83 for every ₹1 of sales the company makes. That’s slightly higher than Titan’s 4.82 and much higher than Kalyan’s 2.03, Senco Gold’s 0.84, and Thangamayil’s 1.16. PC Jeweller is also lower at 3.45.

In simple terms, BlueStone’s valuation is on the higher side within the jewellery sector. Investors are willing to pay a significant premium for each rupee of sales, likely because of its strong brand, high growth, and digital focus, even though BlueStone is much smaller than Titan by revenue and stores.

However, it’s important to know that BlueStone is still loss-making. Since it isn’t profitable, no price-to-earnings (P/E) ratio can be calculated, so valuations rely on sales multiples and growth outlook.

Disclaimer: The P/S ratio here is calculated by dividing the company’s implied market cap (based on total pre-IPO shares plus all shares in the fresh issue and OFS) by its FY25 revenue.

The People Behind Bluestone Jewellery

Gaurav Singh Kushwaha, an IIT Delhi graduate, founded BlueStone in 2011 and continues to lead it as Chairman, MD, and CEO. Before BlueStone, he worked at Amazon and built the startup Chakpak. He’s been featured in Fortune India’s “40 Under 40” and counts Ratan Tata among his early investors, a quiet but significant backing. Known for being hands-on, Kushwaha has tied his personal stake closely to BlueStone’s growth, steering its omni-channel strategy himself.

Joining him is Rumit Dugar, CFO since May 2022, with over 17 years’ experience across finance, tech, and capital markets. His career spans roles at JP Morgan, Infosys, IDFC, and fintech player Niyogin. He holds a BE in Computer Science and an MBA in Finance from SP Jain.

Then there’s Sudeep Nagar, an IIM Ahmedabad alum who came on board in 2012 as COO and was elevated to Co-Founder in 2022. With a background in software and luxury real estate, he has reshaped BlueStone’s operations, cutting waste, speeding deliveries, and integrating AI-driven inventory control to strengthen its omni-channel model.

Industry Outlook

India’s jewellery sector stands tall, a ₹6.34 lakh crore ($75 billion) market in 2024, projected to grow to ₹12 lakh crore billion ($140 billion) by 2029, with double-digit CAGR. The dominance of gold holds (81% share), but diamond jewellery is catching up (around 16%) as incomes rise and millennials seek modern styles. Organised retailers, online platforms, and omni-channel models offer trust and convenience, drawing more buyers into branded stores and digital-first brands like BlueStone.

Who’s Making Money via the IPO OFS: Selling Shareholders

BluStone's IPO includes an offer for sale of up to 1,39,39,063 equity shares worth ₹720.65 crore. Along with the founder, Gaurav Singh Kushwaha, several other investors are also cashing out via the OFS, making sizable returns on the weighted average cost of acquisition per share. Saama Capital II, Ltd. is making 10.62x returns on investment, followed by Kalaari Capital Partners II, LLC (8.72x), Accel India III (Mauritius) Ltd (8.12x), Iron Pillar India Fund I & Kalaari Capital Partners Opportunity Fund, LLC, with 6.27x each. Iron Pillar Fund I Ltd is offloading shares with 5.57x, Sunil Kant Munjal with 1.97x, and its founder and CEO, Gaurav Singh Kushwaha, is also making 10.79x gains on his initial investment.

Analyst View

BlueStone offers real strengths, diamond-focused high margins, rapid expansion, and clever use of technology. But it’s still burning cash and is loss-making, so investors should watch its ability to balance growth with profitability. Store expansion looks promising, but the business sits on substantial inventory and debt, raising questions about operational efficiency and financial stability. If BlueStone can convert its repeat customers and visibility into profits, the upside is compelling, but investors should factor in execution risks, dependency on physical sales, and market cycles. For those comfortable with growth-stage consumer brands and who can tolerate short-term losses in pursuit of long-term market leadership, BlueStone might be worth considering. But it’s not for those wanting quick, risk-free returns.

Other IPOs to Watch

There are several tech or new-age companies that have announced their plans for IPOs. The list counts Pine Labs, PhonePe, Urban Company, boAt, Lenskart, WeWork India, PhysicsWallah, Zepto, and OYO. You can check the complete list and analysis at INDmoney’s IPO tracker.

How to Apply for an IPO on INDmoney?

1. Download the INDmoney app and complete your KYC to open an account.
2. Go to the INDstocks section and tap on IPO, or search for ‘IPO’.
3. Select your preferred IPO from the list of live IPOs.
4. View key details like price band, lot size, and dates, then tap ‘Apply Now’.
5. Choose the number of lots and place your order via UPI. Your funds will be blocked until the share allotment is finalized.

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

Source: Bluestone Jewellery's RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.