• BlueStone sets IPO price band at Rs 492–517 per share, aiming for a Rs 7,800 crore valuation.
• Early investors like Accel, Kalaari, and Hero Enterprise to participate in Offer for Sale.
• BlueStone operates 225 stores in 117 cities, alongside online platforms.

BlueStone Jewellery & Lifestyle Limited, Bengaluru-headquartered omnichannel jeweler, is ready to open its initial public offering (IPO) on August 11, seeking a market capitalization of about Rs 7,800 crore ($888 million). The public issue will be open till August 13, with the anchor book opening on August 8, according to the company's red herring prospectus.

The IPO will feature a new issue of Rs 820 crore and up to an offer for sale (OFS) of 1.39 crore shares, lower than the planned 2.4 crore shares. The firm initially sought to raise Rs 1,000 crore through primary capital.

BlueStone was started by Gaurav Singh Kushwaha, an IIT Delhi alumnus and ex-Amazon executive. Kushwaha, with a 17.7% stake in BlueStone, started the company to revolutionize jewellery shopping by merging age-old craftsmanship with digital ease. BlueStone, over the years, has grown into a formidable omnichannel player, now having 225 retail outlets in 117 cities in India, in addition to a significant online presence through its app and website.

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The IPO proceeds, net of expenses, will be used mainly for working capital needs and general corporate objectives.

Some noted early-stage investors will be part of the OFS, such as Accel Partners, Saama Capital, Kalaari Capital, Iron Pillar, and Hero Enterprise Partner Ventures (helmed by Sunil Kant Munjal). IvyCap Ventures, which was previously scheduled to sell 3.1 million shares, is no longer included in the updated offer. Large investors such as Info Edge Ventures, Steadview, Prosus, Peak XV, and Think Investments will hold on to their shares.

The IPO arrives during a period when the jewellery industry is seeing increased investor appetite, further supported by Tata Group's recent acquisition of CaratLane in its entirety at a valuation of Rs 17,000 crore.

Though BlueStone has witnessed robust revenue momentum with operating revenue surging 40% year-on-year to Rs 1,770 crore in FY25 the company remains loss-making, with net losses going up to Rs 222 crore in FY25 from Rs 142 crore a year ago.

Axis Capital, Kotak Mahindra Capital, and IIFL Capital are handling the IPO, and the legal advisor is Trilegal.