Omnichannel jewellery brand BlueStone has officially filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), marking the next step toward its initial public offering (IPO). This comes nearly four months after SEBI gave its approval to the jewellery startup to proceed with its public listing.
The Bengaluru-based brand, known for its blend of online and offline retail jewellery experiences, has revised its IPO structure. Initially planning to raise INR 1,000 Cr through a fresh issue of equity shares, BlueStone has trimmed the size of the fresh issue by 18% to INR 820 Cr. The company will also consider an Offer for Sale (OFS) component by existing shareholders, the details of which are yet to be disclosed.
IPO Proceeds to Fund Working Capital Requirements
BlueStone has revealed that it plans to allocate around INR 750 Cr from the fresh capital to meet its working capital needs. The brand emphasized the necessity of this funding to manage its growing inventory demands, especially as it continues to scale its physical retail footprint across India.
As outlined in the company’s DRHP, the funds will be utilized to bridge the working capital gap for financing and replenishing inventory, including high-value items such as bullion, diamonds, and gemstones. This inventory is held across the company’s physical stores, warehouses, logistics centers, and manufacturing units.
With consumer demand rising and physical retail showing robust growth post-pandemic, BlueStone is ramping up its store network, which in turn requires higher inventory turnover and a strong supply chain. The company stated, “As our physical store network grows, we will require additional working capital for funding inventory requirements of these new physical stores and replenishment, as well as expansion of inventory in the existing stores, as we expand presence across categories and expand merchandise selection at the store level.”
BlueStone’s Omnichannel Expansion Strategy
Founded in 2011, BlueStone has evolved into one of India’s leading digital-first jewellery brands. Its omnichannel strategy, combining the convenience of e-commerce with the trust and tactile experience of brick-and-mortar stores, has been instrumental in its growth.
Over the past few years, BlueStone has expanded aggressively into Tier I and Tier II cities, positioning itself as a premium but accessible jewellery brand for modern Indian consumers. The company has also diversified its product categories, targeting both traditional and contemporary jewellery buyers.
Market Outlook and Investor Interest
The Indian jewellery market, valued at over INR 5 trillion, continues to be driven by rising disposable incomes, cultural demand for gold, and a shift toward branded jewellery. BlueStone’s IPO comes at a time when public markets have shown strong appetite for consumer-focused brands, especially in the D2C (direct-to-consumer) and retail sectors.
Investors will be closely watching BlueStone’s IPO for signals on market sentiment and long-term profitability in a highly competitive sector that includes players like Tanishq (Titan), CaratLane, and Senco Gold.
With the IPO process underway, BlueStone’s move marks a significant milestone in its growth story, as it aims to cement its leadership position in India’s evolving jewellery market.
