Bluestone Jewellery IPO Subscribed 39 Percent on First Day

Gems News: Tepid Start to a Highly Anticipated Offering

Bluestone Jewellery and Lifestyle Ltd, one of India’s fastest-growing omnichannel jewelry retailers, launched its much-awaited initial public offering (IPO) on August 11. According to data from the BSE and NSE, the offering was subscribed 39% on the opening day, with investors bidding for 6.3 million shares against the 16.5 million on offer. Retail investors accounted for 38% of their allocated quota, while non-institutional investors subscribed just 4%. In contrast, qualified institutional buyers showed stronger appetite, subscribing for five million out of the 8.8 million shares earmarked for them. This Gems News report highlights that Bluestone aims to raise up to ₹1,540.6 crore (US$182.7 million) within a price band of ₹492-517 per share, with shares scheduled to list on Indian exchanges on August 19.

Bluestone Jewellery IPO Sees 39 Percent Subscription on Day One
Image Credit: Bluestone Jewellery

Institutional Confidence Versus Retail Caution

The IPO’s early numbers reveal a widening divide between sophisticated institutional buyers and cautious retail participants. Institutional demand reached a 57% subscription rate, suggesting professional investors see long-term potential in Bluestone’s growth story. Retail buyers, however, remain hesitant, perhaps due to the company’s ongoing financial struggles. Although revenue climbed by 40% to ₹1,770 crore in FY25, net losses also deepened to ₹222 crore. Adding to the cautious outlook, the IPO price was set below the ₹578 per share that promoters paid just eight months earlier, signaling market skepticism about valuation and profitability.

Strategic Scaling in an Expanding Market

Despite near-term concerns, Bluestone is positioning itself to capitalize on changing consumer behavior. With 275 stores across 117 cities alongside a robust digital platform, the company embodies the omnichannel model increasingly favored in modern retail. Online jewelry sales globally have surged since the pandemic, reaching $16.8 billion in the U.S. alone, a trend Bluestone is leveraging to capture both tech-savvy and traditional buyers. The global jewelry market, valued at $348 billion in 2025, is forecast to touch $450 billion by 2030, indicating strong growth potential. Competitive pressures, however, are intensifying, as demonstrated by Tata Group’s acquisition of CaratLane for ₹17,000 crore, underscoring how rapidly successful omnichannel brands can scale in valuation.

Outlook for Bluestone’s Market Debut

Bluestone’s IPO reflects a broader narrative within India’s luxury and lifestyle retail sector—where rapid expansion meets cautious optimism. Institutional investors continue to bet on the company’s long-term omnichannel advantage and brand recognition, while retail investors remain wary of immediate losses and valuation gaps. The eventual outcome of this IPO will depend on how Bluestone navigates profitability challenges while sustaining aggressive growth in a crowded market. If successful, the brand could cement its role as one of India’s leading jewelry retailers in both offline and online domains, but if momentum falters, it risks being overshadowed by better-capitalized competitors.

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