Business Profile of the Bluestone Jewellery and Lifestyle Ltd
Bluestone Jewellery Limited was founded in 2011, the company manufactures and provides diamond, platinum, gold, and studded jewellery under their brand name Bluestone. The company focuses on blending traditional craftsmanship with contemporary aesthetics. The product range of the company includes everyday wear and weeding collections by embracing design and manufacturing techniques. Bluestone provides customers with a seamless online shopping experience, including customization options, free home trials, and easy returns. As of June 30, 2024, the company has a pan-India presence which consists network of stores comprising 110 company-owned stores and 93 franchise stores with a total area of over 350,000 square feet.
Bluestone Jewellery IPO Objective
As per the draft red hearing prospects, the IPO issue consists fresh issue and offer for sale. The fresh issue consists of XXXX shares at the face value of ₨ 1.00 each aggregating up to ₹10,000 .00 millions and OFS consists 23,986,883 shares at face value of ₨ 1.00 each aggregating up to ₨ XXXX millions. There are fresh shares issues and OFS by company and main objective of company funding working capital requirements & general corporate expense.
IPO Details of Bluestone Jewellery and Lifestyle Ltd
| IPO Open Date | N.A. |
| IPO Close Date | N.A. |
| Basis of Allotment | N.A. |
| Listing Date | N.A. |
| Face Value | ₹1.00 per share |
| Price | N.A. |
| Lot Size | N.A. |
| Total Issue Size | Up to XXXX Equity Shares |
| Aggregating up to XXXX million | |
| Fresh Issue | Up to XXXX Equity Shares |
| Aggregating up to ₹10,000 .00million | |
| Offer For Sale | Up to 23,986,883 Equity Shares |
| Aggregating up to XXXX million | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE & NSE |
| QIB Shares Offered | Not more than 75% of the Net Issue |
| Retail Shares Offered | Not more than 10% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Bluestone Jewellery IPO Issue Price & Size
The issue price of Bluestone Jewellery and Lifestyle Ltd hasn’t been released yet. Upon releasing the dates, the investors can bid between those price ranges. The company has fresh issue and OFS aggregating up to ₹ XXXX million at the price of ₨XXXX.
Launch Date of Bluestone Jewellery IPO
The IPO opening date of Bluestone Jewellery And Lifestyle Limited hasn’t been officially announced yet, upon the declaration of dates investor can bid for IPO.
Bluestone Jewellery and Lifestyle Ltd Financial Statements
| Particulars (In millions) | Three months ended 30 June 2024 |
Year ended 31 March 2024 |
Year ended 31 March 2023 |
Year ended 31 March 2022 |
| Income | ||||
| Revenue from operations | 3,482.44 | 12,658.39 | 7,707.26 | 4,613.58 |
| Other income | 109.47 | 376.52 | 171.68 | 153.13 |
| Total income | 3,591.91 | 13,034.91 | 7,878.94 | 4,766.71 |
| Expenses | ||||
| Cost of raw materials consumed | 4,171.29 | 12,346.71 | 7,176.00 | 3,805.25 |
| Change in inventories of finished goods , work - in - progress and stock - in - trade | ( 2,055.55 ) | ( 4,803.30 ) | ( 1,924.79 ) | ( 680.55 ) |
| Employee benefits expense | 417.13 | 1,384.25 | 911.96 | 417.56 |
| Finance costs | 456.92 | 1,376.71 | 666.85 | 185.74 |
| Fair value loss on financial liabilities at fair value through profit or loss | - | - | - | 12,093.23 |
| Depreciation and amortization expense | 264.71 | 952.66 | 616.94 | 220.69 |
| Other expenses | 929.62 | 3,200.24 | 2,104.42 | 1,337.87 |
| Total expenses | 4,184.12 | 14,457.27 | 9,551.38 | 17,379.79 |
| Loss before tax | ( 592.21 ) | ( 1,422.36 ) | ( 1,672.44 ) | ( 12,613.08 ) |
| Tax expenses : | ||||
| Current tax | - | - | - | - |
| Deferred tax charge | - | - | - | 71.01 |
| Income tax expenses | - | - | - | 71.01 |
| Loss for the period / year | ( 592.21 ) | ( 1,422.36 ) | ( 1,672.44 ) | ( 12,684.09 ) |
Key financial ratios of Bluestone Jewellery and Lifestyle Ltd
| Particulars | Three months ended June 30 , 2024 | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 |
| Financial Performance Indicators | ||||
| Net Revenue | 3,482.44 | 12,658.39 | 7,707.26 | 4,613.58 |
| Net Revenue ( year on year growth ) ( % ) | NA | 64.24 | 67.06 | 88.65 |
| Gross Profit | 1,366.70 | 5,114.98 | 2,456.04 | 1,488.87 |
| Gross Margin ( % ) | 39.25 | 40.41 | 31.87 | 32.27 |
| EBITDA | 19.95 | 530.49 | -560.34 | -266.55 |
| EBITDA Margin ( % ) | 0.57 | 4.19 | -7.27 | -5.78 |
| Adjusted EBITDA | 113.69 | 1,054.23 | -272.79 | -39.69 |
| Adjusted EBITDA Margin ( % ) | 3.26 | 8.33 | -3.54 | -0.86 |
| Restated Profit After Tax for the year / period | -592.21 | -1,422.36 | -1,672.44 | -12,684.09 |
| PAT Margin ( % ) | -17.01 | -11.24 | -21.7 | -274.93 |
| Average Inventory | NA | 6,932.69 | 2,807.20 | 1,157.62 |
| Inventory Turnover Ratio | NA | 1.83 | 2.75 | 3.99 |
| ROCE ( % ) | -2.36 | -5.25 | -75.18 | -362 |
| Net Debt | 6,166.23 | 3,259.23 | 1,955.91 | 18,338.94 |
| Net Debt / Equity | 1.90 | 0.87 | -2.72 | -1 |
Promoters & Shareholding of Bluestone Jewellery IPO
As of date, according to the DRHP filed with SEBI promoters and promoter group have 73.18% shareholding in company.
| Particulars | No. of Equity Shares | % of Shareholding |
| Promoter and Promoter Group | 24,761.97 | 73.18 % |
| Public | 9,077,292 | 26.82 % |
| Non Promoter- Non Public | - | - |
| Shares underlying DR | - | - |
| Shares held by Employee Trust | - | - |
| Total | 33,839,269 | 100.00 |
Should You Subscribe to Bluestone Jewellery IPO
While investing or subscribing to any IPO, consider the investment rationales related to the company. Hence, here you can find out the strength of the company that will be its growth factors. And also check the risk factors that can affect the growth and operational efficiency of the company.
Competitive Strengths of Bluestone Jewellery and Lifestyle Ltd
Omni-channel retail experience
Bluestone is the second-largest digital-first omni-channel jewellery brand in India, in terms of revenue in fiscal 2024. The market share of the company among omni-channel players in jewellery industry was 26%-30% in fiscal 2024. The omni-channel approach is important, mainly for high-ticket discretionary items like jewellery. This strategy enhances customer convenience, offers personalized recommendations, showcases product quality & design, and builds relationships influencing customers to invest in premium design.
In-house Technology Architecture
The company has in-house technology which helps in driving end-to-end business operations. Bluestone has enhanced their online rendering of jewellery through investment in technology. The merchandising strategy of the company operates entirely on artificial intelligence and machine learning algorithms without human involvement in making the right merchandising decisions at various stores. Algorithm-led data-driven approach provides flexibility to develop new designs and products, helping us to stay ahead of evolving market trends.
Differentiated Approach to Product and Design
Bluestone'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. The company is able to maintain differentiation in product design and all products are made in-house. The ability of the company to rely on technology also reduces the requirements to hire skilled laborers. As a result, bluestone is able to engage with the customer with customers at different stages of their life with jewellery purchases.
Pan-India Presence
The pan-India presence of the company is an extension of Bluestone's online channel and provides the ability to interact with customers in person who drives customer engagement and increases brand visibility. Bluestone is among a few jewelry brands with a pan-India presence according to a RedSeer report. The company opened its first store in New Delhi in 2008, currently, the company has 203 stores across 86 cities in 26 states and Union territories in India with an aggregating area of over 350,000 feet.
Risk Factors of Bluestone Jewellery and Lifestyle Ltd
Bluestone dependency
The company retails its products under the Bluestone brand. The Bluestone is essential for the company and is well-recognized, having been developed to serve the needs of customers across India. The success of the brand depends on its ability to maintain the recall value of Bluestone and effectively leverage its brand image to generate interest in new products. The ability to attract and retain customers depends on public perception related to brand products. If marketing and advertising campaigns are poorly executed it could adversely affect cash flows and the financial condition of the company.
Unable to provide new design
The jewellery business is significantly affected by changes in customer preferences. If the company misjudges the market for its products or is unable to change according to trends, designing new products relating to customer preference may negatively affect the sales of the company. If a company is unable to anticipate, gauge, and respond to changing customer preferences or jewellery design trends, the company may lose or fail to attract customers.
Majority revenue from physical stores
Bluestone ltd. derives a portion of its revenue from direct sales from physical stores of company and franchise stores. Any adverse development affecting company operations in these regions could have an adverse impact on company revenue and results of operations. Any materially adverse social, political, or economic development, civil disruptions, or change in policies of states could negatively affect the operations of stores, profitability, and reputation in such states and overall business.
High competition market
The company operates in jewellery market in India which is highly competitive for both domestic and international players. The other companies compete on various fronts, including pricing, product offerings, quality, and marketing strategies. The competitors of the company may significantly increase their advertising expenses to promote their brand, which may require the company to similarly increase their advertising, publicity, and sales promotion which may have an adverse effect on company revenues and business operations.
Grey Market Premium of Bluestone Jewellery Ltd
Grey market premium is the premium quoted over the IPO issue price. GMP shows that investors are ready to pay above the upper band of the IPO issue price. GMP is determined in the grey market as per the demand and supply of the shares in the primary market. A grey market is that unofficial ecosystem of unlisted companies' stocks that start trading even before the launch of the IPO to the date of its listing.
Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable
However, GMP is not a reliable factor, as it keeps fluctuating as per the demand and supply of shares in the primary market. There are numerous factors that affect the stock market in India and individual stock prices of different companies that are already listed and trading in the secondary market. However, for an IPO-bounded company, you can consider the GMP as the speculative listing price of the share
According to various online sources, the Grey Market Premium or GMP of the Bluestone Jewellery IPO is trading around Rs XX in the grey market. It means shares are trading at the upper band issue price of Rs XX with a premium in the grey market and may list around the same price.
