BlueStone Jewellery Makes Muted Debut with 2% Discount, Below Market Expectations

BlueStone Jewellery & Lifestyle Limited, the digital-first jewellery brand, made a muted debut on BSE and NSE on August 19, 2025. After closing its IPO bidding between August 11-13, 2025, the company commenced trading at ₹510 on NSE and ₹508.80 on BSE, reflecting a 1.6% discount to the issue price of ₹517 and indicating cautious investor sentiment towards the jewellery retail sector.

BlueStone Jewellery Listing Details

BlueStone Jewellery & Lifestyle IPO launched at ₹517 per share with a minimum investment of 29 shares costing ₹14,993. The IPO received a moderate response with a subscription of 2.72 times - QIB leading at 4.25 times, retail investors at 1.38 times, and NII at only 0.57 times, indicating mixed investor interest with weak high net worth investor participation in the jewellery business.

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First-Day Trading Performance Outlook

Listing Price: The BlueStone Jewellery share price opened at ₹510 on NSE and ₹508.80 on BSE, representing discounts of 1.4% and 1.6% respectively from the issue price of ₹517, reflecting disappointing returns for investors and falling short of market expectations.

Growth Drivers and Challenges

Growth Drivers:

Strong Revenue Growth: Revenue increased by 40% to ₹1,830.04 crore in FY25 from ₹1,303.49 crore in FY24, reflecting robust demand for contemporary lifestyle jewellery and successful market expansion strategies.

Pan-India Retail Presence: Network of 275 stores across 117 cities in 26 states and union territories serving over 12,600 PIN codes, providing extensive market reach and omni-channel retail experience.

Digital-First Business Model: Leading digital-first jewellery brand with in-house technology architecture driving end-to-end business operations and differentiated approach to product design and customer experience.

Vertically Integrated Operations: Advanced manufacturing capabilities with vertically integrated operations ensuring quality control and cost optimization across the value chain.
 

Challenges:

Persistent Losses: PAT losses increased to ₹221.84 crore in FY25 from ₹142.24 crore in FY24, raising concerns about profitability sustainability and path to profitability in the competitive jewellery market.

High Debt Burden: Debt-to-equity ratio of 0.80 with total borrowings of ₹728.62 crore, creating financial leverage concerns and affecting cash flow generation capabilities for growth investments.

Negative Financial Metrics: Negative ROE of -34.53%, negative ROCE of -3.67%, and negative PAT margin of -12.53% indicating operational challenges and margin pressures in the jewellery retail business.

Competitive Market Environment: Operating in a highly competitive and fragmented jewellery retail segment with pricing pressures and margin compression challenges affecting profitability and sustainability.
 

Utilisation of IPO Proceeds

Working Capital Requirements: ₹750 crore for funding working capital requirements supporting inventory management and business operations in the jewellery retail sector.

General Corporate Purposes: ₹20.75 crore for general corporate purposes supporting business operations and strategic initiatives in the jewellery manufacturing and retail sector.

Financial Performance of BlueStone Jewellery

Revenue: Revenue: ₹1,830.04 crore for FY25, showing strong growth of 40% from ₹1,303.49 crore in FY24, reflecting robust demand for contemporary jewellery and successful expansion strategies. Net Loss: ₹221.84 crore in FY25, representing an increase in losses from ₹142.24 crore in FY24, indicating operational challenges and margin pressures despite revenue growth. Financial Metrics: Negative ROE of -34.53%, negative ROCE of -3.67%, debt-to-equity ratio of 0.80, negative RoNW of -24.45%, negative PAT margin of -12.53%, EBITDA margin of 4.13%, Price to Book Value of 2.01, and market capitalisation of ₹7,823.26 crore.

The company's modest debut meeting market expectations demonstrates measured investor confidence in the office REIT sector, positioning Knowledge Realty Trust for steady income distribution despite profitability challenges and high debt levels.