Indian jewelry retailer BlueStone raises $79m ahead of IPO

BlueStone Jewellery and Lifestyle has raised 693 crore rupee (US$79.2 million) from anchor investors ahead of its IPO.

The Bengaluru-based jewellery retailer allocated over 1.34 crore shares at 517 rupee (US$5.9) each to investors including Amansa Holdings, SBI Life Insurance, Nippon India Mutual Fund, and Goldman Sachs.

The IPO will open for subscription from August 11 to August 13. It will comprise a new issue of 820 crore rupee (US$93.7 million) and an offer for sale of 1,39,39,063 shares worth 720.7 crore rupee (US$82.4 million) at the top end of the price band.

Existing shareholders selling in the offer include Kalaari Capital Partners II, Saama Capital II, Sunil Kant Munjal, and other partners of Hero Enterprise Partner Ventures.

BlueStone plans to use proceeds from the new issue for working capital and general corporate purposes.

The company operates 275 stores in 117 cities and runs manufacturing facilities in Mumbai, Jaipur, and Surat.

Shares are proposed to be listed on the BSE and NSE.

🔗 Source: YourStory

🧠 Food for thought

1️⃣ Omnichannel expansion drives growth but pressures profitability

BlueStone’s rapid scaling illustrates the challenge of maintaining margins while pursuing aggressive growth in the jewellery retail sector.

The company’s revenue surged 40% from ₹1,303.49 crore in March 2024 to ₹1,830.04 crore in March 2025, yet net profit declined by 56% during the same period 1.

This financial pattern reflects the significant investment required to build an omnichannel presence. BlueStone expanded from its first physical store in New Delhi in 2018 to 275 stores across 117 cities by 2025 2.

The expansion strategy appears designed to capture market share in India’s jewellery sector, where branded players are expected to grow at a 21% CAGR from 2021 to 2024 3.

However, the declining profitability despite strong revenue growth suggests that store buildout and inventory expansion are currently outpacing operational efficiency gains.