Source: Entrackr
Bengaluru, August 18, 2025 — The share sale for Bluestone Jewellery and Lifestyle ended on a poor note, suggesting weak support from investors and limited enthusiasm towards high-valuation consumer internet and D2C companies. The company had aimed for ₹1,500 crore, but gross subscription stood at 2.57 times only. Bluestone Jewellery IPO Receives Tepid Response; Listing on August 19
Bengaluru, August 18, 2025 – Bluestone Jewellery and Lifestyle’s initial public offering (IPO) was poorly received by investors. Investors are clearly in a cautious mood regarding high-valuation consumer internet and direct-to-consumer (D2C) companies, as the company set out to raise ₹1,500 crore, but the overall subscription was only 2.57 times that of the issue and much lower than for prior listings of new-age and high-valuation brands.
Subscription Distribution
The stock exchanges provide a breakdown of the subscription across the investor category as follows:
Qualified Institutional Investors (QIBs): 4.09×
Retail Individual Investors (RIIs): 1.22×
Non-Institutional Investors (NIIs): 0.53×
Pricing the shares in the band of ₹492–517 per share. There was, however, most of the subscription by institutional investors, and retail and high net worth participation was modest.
Contrasting with Other Startup IPOs
In comparison to other startup IPOs in the past few years, Bluestone’s numbers are lackluster. Beauty and lifestyle retailer Nykaa had an oversubscription of more than 80 times, food delivery company Zomato saw interest of 38 times, while skin care brand Mamaearth had a 7.6 times subscription. Even small digital-first brands received much better interest from retail and NII segments. Analysts say this is a shift in sentiment, as investors are more discerning about investing in consumer tech companies that have losses.
Grey Market Developments and Valuation
The grey market premium (GMP) of Bluestone’s IPO likewise reflected the weak demand. The GMP, which began at approximately 2%, fell to less than 1% towards the end of the subscription period. This suggests that listing gains, if any, will be minimal.
Nevertheless, Bluestone is aiming for an enterprise valuation of ₹7,800–8,100 crore. This does keep it in the same ballpark as Titan’s CaratLane. However, unlike CaratLane, Bluestone continues to be loss-making, which is an issue for prospective investors with respect to Bluestone’s business viability.
Business Model & Company Performance
Bluestone had revenue of ₹1,770 crore for FY25, achieving super growth in sales. However, at the same time, the company has a net loss of ₹222 crore. Its earnings before interest, taxes, depreciation, and amortization (EBITDA) margins remained in single digits.
Bluestone’s omnichannel strategy combines online and offline sales, leveraging its large geographic reach of more than 250 store locations. While the omnichannel strategy has created a diversified revenue stream, it also adds cost, which continues to affect profitability.
Bluestone is expected to list on exchanges by August 19, 2025. Analysts are expecting a weak listing for Bluestone given the below-average response from retail and NII investors and lackluster activity on the grey market for the company. The listing is anticipated, given that it will indicate whether investors’ risk appetite has returned for consumer internet firms or if they are still very cautious with high valuations and ongoing losses to consider.
