BlueStone Jewellery & Lifestyle’s IPO is LIVE: Should You Subscribe?

The initial public offering (IPO) of BlueStone Jewellery & Lifestyle (BlueStone) opened for subscription on August 11, and will close on Wednesday, August 13, 2025. The grey market premium (GMP) for the IPO is hovering around Rs 9, indicating a 2% premium.

Investors are advised to carefully consider both the opportunities and risks before subscribing. For a detailed review, see our comprehensive IPO analysis here.

BlueStone Jewellery & Lifestyle IPO Details 

• Issue Details: Mainstream
• Issue Size: Rs 1,540.65 crore
• Fresh Issue: Rs 820 crore
• Offer for Sale: Rs 720.65 crore
• Price Band: Rs 492 – Rs 517
• Lot Size: 29 shares
• Listing Date: August 19, 2025

Overview of BlueStone Jewellery & Lifestyle Ltd

BlueStone is India’s second-largest digital-first jewellery brand by revenue in FY24, offering an omni-channel retail experience through its website, mobile app and physical stores. The firm primarily targets a broad demographic of men and women aged 25–45 years, offering designs that appeal to both everyday wear and special occasions.

BlueStone operates three manufacturing facilities in Mumbai, Jaipur and Surat, with a fourth facility under construction in Jaipur. Its extensive product portfolio—priced between Rs 5,000 and Rs 17 lakh—caters to consumers across diverse income brackets.

BlueStone Jewellery & Lifestyle Key Strengths

• Financial Performance: BlueStone has delivered strong growth, recording a 52% CAGR in operating revenue. The company turned EBITDA-positive in FY24, with an Adjusted EBITDA of Rs 105.42 crore, which rose further to Rs 127.8 crore in FY25.
• Extensive Retail Network: BlueStone operates 275 stores across 117 cities in 26 States and Union Territories, servicing over 12,600 PIN codes as of March 31, 2025.
• Expanding Customer Base & Loyalty: BlueStone’s unique customer base nearly doubled from 3.9 lakh in FY23 to 7.7 lakh in FY25. Additionally, its Repeat Revenue Ratio—the share of revenue from customers placing multiple orders—rose consistently to 44.61% in FY25, up from 39.83% in FY24 and 34.67% in FY23, reflecting strong brand loyalty and customer satisfaction.
• Strong In-house Manufacturing: Over 75% of jewellery is produced in-house, enabling faster scale-up, quicker time-to-market for new collections, consistent quality and tighter supply chain control.

BlueStone Jewellery & Lifestyle Risk Factors

• Sustained Losses: BlueStone has incurred losses since inception, reporting a net loss of Rs 221.8 crore in FY25, Rs 142.2 crore in FY24 and Rs 167.2 crore in FY23. Continued losses in the near term may limit its ability to fund growth initiatives.
• Cash Flow Concerns: BlueStone recorded negative cash flows from operations in both FY25 and FY24. Persistent negative cash flows could strain liquidity, impacting business continuity and overall financial stability.
• Promoter Share Pledge: The promoter, Gaurav Singh Kushwaha, has pledged 9.2 million shares (37.6% of his pre-offer shareholding) to certain lenders. If these lenders enforce the pledge, it could dilute the promoter’s stake, potentially affecting control and business stability.
• Rising Borrowings: Total borrowings have increased from Rs 228.4 crore in FY23 to Rs 728.6 crore in FY25, primarily to fund working capital and inventory requirements. As operations expand and new stores open, higher inventory levels may be necessary to support a wider product range and meet demand. Significant increases in borrowings could adversely affect the company’s cash flows and results of operations.

Final Thoughts: Should You Subscribe to BlueStone Jewellery & Lifestyle’s IPO?

BlueStone has delivered strong revenue growth over the past three years, supported by a well-recognised brand and a rapidly expanding target market. However, despite this strong top-line performance, the company remains loss-making since inception and reported a negative Return on Net Worth (RoNW) of 24.45% in FY25.

BlueStone is pursuing aggressive expansion, with plans to open ~290 stores over the next two years. A significant part of its network is still young—of the current 275 stores, 120 were opened in the past two years. With a large proportion of stores yet to mature and an aggressive rollout underway, profitability is unlikely in the near-to-medium term.

Considering the sustained losses, negative returns and execution risks from rapid scale-up, we advise investors to avoid this IPO.

For a deep dive into other IPOs, explore: IPO Corner on Liquide