BlueStone Jewellery IPO: The good and the bad

Summary: Thinking of applying for the BlueStone Jewellery IPO? The jewellery retailer has delivered high double-digit revenue growth in recent years but still remains loss-making. There also remain other risks that warrant closer scrutiny. We decode the business, its strengths and weaknesses in the story below. BlueStone Jewellery IPO will open for subscription on August 11, 2025 and close on August 13, 2025. It consists of a fresh issue of Rs 820 crore and an offer for sale (OFS) of Rs 721 crore by existing shareholders. We bring you a quick breakdown of the jewellery retailer’s business, its past track record and key strengths and weaknesses to help you make an informed decision: What the company does BlueStone is a digital-first jewellery brand that manufactures and retails gold, diamond, gemstone and platinum jewellery through a mix of online and offline channels. Founded in 2011, the company operates in the ‘affordable luxury’ segment, targeting customers in the 25–45 age group with modern, lightweight jewellery suited for everyday wear and gifting. The company’s retail network spans 275 stores across 117 cities in India, including both company-owned and franchisee outlets. It also sells through its website, mobile app, and “Try at Home” offering. It commanded a market share of 28-32 per cent among omnichannel players in the jewellery industry as of 2024. Past track record and valuation BlueStone’s growth trajectory reflects a clear disparity between its scale and profitability. Between FY23 and FY25, revenue surged by a robust 52 per cent per annum but the company still remained loss-making, with net losses widening from Rs 167 crore in FY23 to Rs 222 crore in FY25 due to aggressive store expansion and marketing. Efficiency metrics are also weak: its ROE averaged -49 per cent and ROCE –13 per cent over the past three years, underscoring capital inefficiency. At the upper price band of Rs 517, it seeks a price-to-book ratio of 4.5 times, below the peer average of 9.7 times. BlueStone is not comparable on earnings multiples owing to its continued losses. BlueStone Jewellery IPO details Total IPO size (Rs cr) 1,541