BlueStone Jewellery and Lifestyle
- BlueStone Jewellery and Lifestyle is coming out with a 100% book building; initial public offering (IPO) of 3,06,05,729 shares of Rs 1 each in a price band Rs 492-517 per equity share.
- Not more than 75% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 10% for the retail investors.
- The issue will open for subscription on August 11, 2025 and will close on August 13, 2025.
- The shares will be listed on BSE as well as NSE.
- The face value of the share is Rs 1 and is priced 492.00 times of its face value on the lower side and 517.00 times on the higher side.
- Book running lead managers to the issue are Axis Capital, IIFL Capital Services and Kotak Mahindra Capital Company.
- Compliance Officer for the issue is Paras Shah.
Profile of the company
BlueStone Jewellery and Lifestyle offers contemporary lifestyle diamond, gold, platinum and studded jewellery under its flagship brand, BlueStone. The company is a digital first direct-to-consumer (DTC) brand focussed on ensuring a seamless omnichannel experience for customers and are the second largest digital-first omni-channel jewellery brand in India, in terms of revenues in Fiscal 2024. It retails its products through its website www.bluestone.com and its mobile application available on iOS and Google Play Store, in addition to its Pan-India network of stores. It is among the few Leading Jewellery Retailers with a Pan-India presence with 275 stores across 117 cities in 26 States and Union Territories in India, as of March 31, 2025 servicing over 12,600 PIN codes across India.
The BlueStone brand was launched in 2011 and has over the years grown to become a leading brand among Leading Jewellery Retailers. As a design-led brand, it offers a variety of designs across various price points tailored to various occasions and customer preferences. It focuses on designing jewellery for women, men and couples between the ages of 25 to 45 years who value unique designs, modern styles and have a tendency to discover brands through social media or online channels. Its wide range of product offerings includes rings, earrings, necklaces, pendants, solitaires, bangles, bracelets and chains cater to diverse customer segments and are retailed at varied price points. As of March 31, 2025, it had 91 collections (defined as a set of jewellery designs created with a specific theme) of jewellery products.
It offers customers an omni-channel experience with an endeavour to ensure a smooth and consistent shopping experience across various touchpoints. Its omni-channel approach caters to customers’ preferences and convenience and endeavours to ensure that the purchase of jewellery is a personalized and intimate experience. In its experience, an omni-channel approach allows customers to have a cohesive shopping experience by offering them the ability to browse its products online, get assistance in-store, and make purchase decisions either online or at its stores in-person. Building a true omni-channel experience in the jewellery sector is difficult when compared to other retail sectors with a moderate internet penetration in India (defined as categories with an internet penetration in the range of 5% - 22% of total retail sales in Fiscal 2025). It is among the few Pan-India players that have successfully developed a true omni-channel presence.
Proceed is being used for:
- Funding working capital requirements
- General corporate purposes
Industry Overview
India’s jewellery market has traditionally been fragmented, with a substantial portion dominated by small and independent retailers. However, recent years have seen a significant shift towards a more organised structure, particularly in urban areas where chain stores have gained a notable market share. This shift is primarily driven by consumer preferences for standardised products, transparent pricing, and enhanced shopping experiences. The Indian jewellery market showcases distinctive regional preferences. The southern states form most of the sales and are followed by the west, north and east. Southern states contribute to approximately 41% of the total jewellery sales and are a major jewellery hub home to over 2 lakh traditional local goldsmiths and jewellers. Here, consumers prefer traditional 24 and 22-carat plain yellow gold jewellery. The preference is mostly for temples, kemp, and antique jewellery. However, consumers in the Northern and Western regions prefer light-weight studded jewellery (Studded jewellery refers to jewellery pieces that prominently feature gemstones or precious stones).
Organised retail drove approximately 37% of the Indian jewellery market in 2024. The share of organized segments in India is much lower than in global economies like China and USA, where the organised segment holds most of their respective markets. Following the trend in developed markets, the share of organised retail in India has rapidly increased in the past two decades, increasing from a meagre approximately 2% in 2000 to approximately 37% 2024. Nine out of ten top organised jewellery players have grown at over 20% CAGR between Fiscal 2021-2024. From being dominated by challenge-stricken traditional jewellers, the market is witnessing a shift after the emergence of organised retail in the form of key industry leaders providing sophisticated retail experiences across the country. Going forward, the organised segment’s contribution is projected to grow to 43%-47% of the overall jewellery market, growing at a CAGR of 16%-18% till 2029.
The growing popularity of branded jewellery signifies a maturing market. Customers are focusing not only on the intrinsic value of gemstones and metal but also on the trust, quality, and design associated with an established brand. Therefore, the branded jewellery market in India grew from Rs 1,327 billion (around $16 billion) in 2019 to Rs 2,219 billion (around $26 billion) in 2024. Between 2021 and 2024, the branded market grew at around 21% CAGR, recovering from the impact of COVID-19, with the segment’s contribution growing to approximately 35% of the overall jewellery market. With increasing consumer awareness and shifting preferences, consumers are now more inclined towards branded jewellery, which offers them better designs, higher quality, and transparency in pricing. The market is projected to grow further to Rs 5,000 billion - Rs 5,100 billion ($58 billion - $60 billion) in 2029, occupying a share of 43%-45% of the overall market.
Pros and strengths
Second largest digital-first jewellery brands in India offering an omni-channel retail experience: The company is second largest digital-first omni-channel jewellery brands in India, in terms of revenues in Fiscal 2024. Its market share among omni-channel players in the jewellery industry was 28% - 32% in 2024. An omnichannel approach is critical, especially for high-ticket discretionary items like jewellery. These items often involve a significant investment for customers, who expect a seamless and personalised shopping experience. This strategy enhances customer convenience, showcases product quality and design, offers personalised recommendations, and builds lasting relationships, influencing customers’ willingness to invest in premium designs. Customers get the touch-and-feel benefit through offline channels, which helps drive the offline shopping experience.
In-house technology architecture driving end-to-end business operations: It uses technology to deliver a customized customer experience, improve marketing and operational efficiencies, curate store inventory and merchandising. It also leverages technology to develop new product designs that reflect customer preferences. As of March 31, 2025, its in-house technology team comprised 42 members who focus on continuously enhancing its omni-channel capabilities to help automate and improve processes. It has enhanced its online rendering of jewellery through investment in technology. In order to create meaningful customer experience, an accurate online rendering of its jewellery products is important, and in order to ensure that its customers have a smooth experience, it endeavours to provide an accurate online picture of products through its website and mobile application, including having photographs from multiple angles, a size visualisation option, a video to capture a 360-degree view of the product, and a try-at-home or videoconferencing option.
Differentiated approach to product and design: The company’s target customers are women, men and couples between the ages of 25 to 45 who value unique designs and modern styles of diamond, gold, platinum and gemstone jewellery. In its experience, these customers prefer unique and unconventional designs over traditional designs with an emphasis on individuality and self-expression reflecting their distinct personality and aesthetic sensibilities. It is able to maintain differentiation for its products given it designs all its products in-house. As a result, it is able to engage with customers at different stages of their life, with jewellery purchases resulting in increased monetization.
Pan-India presence across Tier-I, Tier-II and Tier-III Cities with Healthy Unit Economics: The company’s Pan-India store presence is an extension of its online channel and provide it with the ability to interact with its customers in person which further drives customer engagement and increases its brand visibility. It is among the few jewellery brands with a Pan-India presence The company provides a uniform view of its products across its physical stores and online channels. It operates through a combination of company stores and franchisee stores. All stores are operated by the company while certain stores are owned by franchisees. It opened its first physical store in New Delhi in 2018, and have significantly expanded its retail presence since then and as of March 31, 2025, it had 275 stores across 117 cities in 26 States and Union Territories in India, including 200 Company Stores and 75 Franchised Stores with an aggregate area of over 605,000 square feet.
Risks and concerns
Not generated any profits since inception: The company has not generated any profits since inception. It has experienced loss of Rs 2,218.37 million, Rs 1,422.36 million and Rs 1,672.44 million in Fiscal 2025, 2024 and 2023, respectively and had negative total equity of Rs 718.26 million in Fiscal 2023. Any loss or negative total equity in future periods could adversely affect its operations, financial conditions, and the trading price of its Equity Shares.
Generated a substantial portion of its sales directly from physical sales: The company’s omni-channel experience involves a confluence of online channels, such as its website and mobile application, and retail channels covering stores. Customers are able to visit any channel to experience the BlueStone brand and its products, make selections and comparisons, undertake customizations and purchase the product through their most preferred channel. This, in its experience, results in meaningful demand aggregation online, while the purchases are completed at stores. Accordingly, any adverse developments in regions where its stores are situated could deter purchases by its customers and affect its revenues.
Business is seasonal in nature: The company has historically experienced seasonal fluctuations in its sales, with higher sales volumes associated with the festive sale period in the third quarter of each Fiscal, which encompasses holidays such as Dhanteras. Similarly, it witnesses higher sales in a specific period of the first quarter during Akshay Tritiya and fourth quarter of each Fiscal. It also witnesses higher sales in the period around Valentine’s Day. It expects to continue to experience seasonal trends in its business, making results of operations variable from quarter to quarter. This variability can make it difficult to predict sales and can result in fluctuations in its revenue or profitability between periods.
Increase in material costs without a corresponding increase in its product prices: A sharp increase in the costs of materials, such as gold, diamonds, and other precious metals and stones, without a corresponding increase in the prices of its products, could significantly impact its profitability. If it is unable to pass on these increased costs to its customers through higher product prices, its gross margins may be adversely affected. This could lead to a material adverse effect on its business, financial condition, cash flows, and results of operations. Additionally, sustained increases in material costs could necessitate changes in its pricing strategy, potentially affecting its competitive position and market share.
Outlook
BlueStone Jewellery and Lifestyle manufactures and provides diamond, gold, platinum and studded jewellery under its flagship brand, BlueStone. The company has a Pan-India presence with 275 stores across 117 cities in 26 States and Union Territories in India, as of March 31, 2025, servicing over 12,600 PIN codes across India. It is leading digital-first jewellery brand in India offering an omni-channel retail experience. The company has advanced manufacturing capabilities with vertically integrated operations. On the concern side, the company has not generated any profits since inception. Any loss or negative total equity in future periods could adversely affect its operations, financial conditions, and the trading price of its Equity Shares. Moreover, the seasonality of its business affects its quarterly results and places an increased strain on its operations.
The issue has been offering 3,06,05,729 shares in a price band of Rs 492-517 per equity share. The aggregate size of the offer is around Rs 1505.80 crore to Rs 1582.32 crore based on lower and upper price band respectively. Minimum application is to be made for 29 shares and in multiples thereon, thereafter. On performance front, the company’s revenue from operations increased by 39.83% from Rs 12,658.39 million in Fiscal 2024 to Rs 17,700.02 million in Fiscal 2025 primarily on account of an increase in sale of products. This has been driven by its same store sales growth in existing stores, rising vintage of stores and higher inventory, as well as addition of new stores. Moreover, the company’s loss for the year was Rs 2,218.37 million in Fiscal 2025 compared to loss of Rs 1,422.36 million in Fiscal 2024.
The integration of its online and offline channels is integral to its ability to remain connected with customers through all touchpoints in the customers’ journey. The omni-channel experience it offers customers has resulted in significant growth in its operations over the years. It intends to deepen and expand all elements of its omni-channel experience. Its focus will be to expand its network of company stores, to reduce dependencies on franchisees for capital. Going forward, the company intends to continue to expand its omni-channel presence by establishing over 290 new stores between Fiscal 2025 to Fiscal 2027. Its expansion of stores will be driven by penetration across existing cities as well as expanding geographic reach across city tiers in India. In cities where it is currently present, it intends to leverage the BlueStone brand and increase store density to further drive sales and inventory turns.
