Bluestone, an omnichannel jewelry retailer based in Bengaluru, has reduced its planned IPO size to a new issue of up to 820 crore rupee (US$98.8 million) and an offer for sale of 1.39 crore (US$167,470) shares, according to its Red Herring Prospectus filed with SEBI.

Bluestone is an omnichannel jewelry retailer based in India.

The company had earlier proposed a new issue of shares worth up to Rs 1,000 crore (US$1.20 billion) and an offer for sale of up to 2.39 crore (US$288,554) shares.

Investors including Kalaari Capital, Accel India, Iron Pillar Funds, and Sunil Kant Munjal have scaled back the number of shares they plan to sell.

IvyCap Ventures has withdrawn its offer to sell up to 31 lakh (US$37,349) shares.

The anchor book is set for August 8, with the public subscription opening from August 11 to August 13.

Industry sources told MoneyControl that Bluestone is targeting a valuation of around US$888 million.

Bluestone’s shareholders include Accel India, Sunil Munjal, Kalaari Capital, 360 One, Peak XV, MIH Investments, Samma Capital, and IvyCap Ventures.

🔗 Source: YourStory

🧠 Food for thought

1️⃣ IPO downsizing reflects cautious investor sentiment despite strong market fundamentals

Bluestone’s decision to reduce its IPO size from Rs 1,000 crore to Rs 820 crore signals shifting market dynamics, even as the underlying jewelry market shows robust growth potential.

The company’s existing investors significantly scaled back their share sales from 24 million to 13.9 million shares, with IvyCap Ventures completely withdrawing its planned sale of 31 lakh shares 1.

This investor behavior suggests either increased confidence in Bluestone’s future prospects or concerns about current market conditions affecting valuations.

The company’s targeted valuation of Rs 7,800 crore represents a markdown from its previous funding round, indicating that even well-funded companies with strong growth metrics must adjust expectations in the current IPO environment 1.

Despite this conservative approach, Bluestone operates in a market projected to reach Rs 9,900 billion by 2028, with India’s online jewelry segment alone growing 80% from 2021 to 2023 12.