ReducedIPO scale for Accel-supported Bluestone Jewellery
In the rapidly evolving world of business, Bluestone Jewellery and Lifestyle, a leading player in the Indian jewellery market, has made some strategic adjustments to its upcoming Initial Public Offering (IPO). The revised plans were revealed in the company's updated prospectus, reflecting a more cautious approach to the public offering.
Originally, the IPO was slated to raise around Rs 30 billion, with a valuation of at least Rs 120 billion. However, in response to revised business projections and market conditions, Bluestone has decided to reduce the size of its IPO from Rs 10 billion to Rs 8.2 billion. This adjustment also includes a cut in the Offer for Sale (OFS) shares being sold by existing investors, from 24 million to 13.9 million shares.
The valuation targeted in the IPO has been adjusted downward to around Rs 7,800 crore, which is lower than the previous private funding valuation of Rs 8,100 crore in August 2024. This modest revision in market expectations is a testament to the company's strategic response to the current market conditions.
The proceeds from the IPO will be used for funding working capital requirements and general corporate purposes. In addition, Bluestone may consider issuing specified securities, in consolidation with bookrunning lead managers, aggregating up to 2 billion rupees in pre-IPO placement.
Bluestone Jewellery and Lifestyle, known for its wide range of diamond, gold, platinum, and studded jewellery, has Axis Capital, IIFL Capital, and Kotak Mahindra Capital as its bookrunning lead managers for the IPO. The IPO is expected to launch on August 11 and close bids on August 13. Notable existing shareholders include Accel India and Kalaari Capital, who will be selling shares in the offering, with a reduced number of 13.9 million shares each.
This strategic move by Bluestone Jewellery and Lifestyle demonstrates a commitment to aligning with investor demand and valuation expectations at the time of the offering, ensuring a successful public debut in the ever-changing market landscape.
In light of the revised business projections and market conditions, Bluestone Jewellery and Lifestyle adjusts its Initial Public Offering (IPO) to a more cautious approach, impacting the amount of funds raised for finance-related purposes such as working capital requirements and general corporate purposes. The IPO also includes the consideration of technology-driven methods, as the company may issue specified securities and pre-IPO placements to consolidate with bookrunning lead managers.
