Initial Offering of BlueStone Records a 39% Subscription on the First Day
In the world of Indian startups, BlueStone, a leading online jewellery retailer, recently made headlines with its Initial Public Offering (IPO). The company, headquartered in Bengaluru and founded in 2011 by Gaurav Kushwaha, aimed to raise INR 820 Cr via a fresh issue.
On the first day of bidding, the IPO received a total subscription of 39%. This relatively low subscription rate can be attributed to the interest levels of different investor categories.
Qualified Institutional Buyers (QIBs) led the pack, subscribing for 57% of the shares reserved for them. Retail investors showed moderate interest, subscribing 38% of their quota, while non-institutional investors (NIIs) showed very low interest, subscribing only 4% of their allocated shares.
QIBs, generally large investors like mutual funds and banks, tend to subscribe heavily due to their financial capacity and institutional mandates. Retail investors (individuals) participated more actively than NIIs, who are usually high-net-worth individuals or entities investing in smaller amounts than QIBs but larger than retail investors. The weak demand from NIIs contributed considerably to the low total day-one subscription.
Despite this slow start, the IPO subscription improved over the following days. By day two, the IPO had moved to 44% subscription, with retail investors booking 61% of their reserved portion and QIBs booking 57%, while NIIs remained low at 6% subscription. By the final day, the IPO was subscribed 2.7 times overall, with QIBs oversubscribing 4.28 times and retail investors bidding 1.35 times, though NIIs still lagged at just 55% subscription.
It's worth noting that BlueStone's operating revenue soared 40% to INR 1,770 Cr in FY25 from INR 1,265.8 Cr in the previous fiscal year. The company also reported a loss of INR 221.8 Cr in FY25, a 56% increase from INR 142.2 Cr in the previous fiscal year.
For more detailed information, you can find sections on Funding Highlights, Investment Highlights, Financial Highlights, and more about Datalabs in the prospectus. Stay tuned for further updates on BlueStone's IPO.
References:
- Economic Times
- Business Standard
- Moneycontrol
- Livemint
- The Hindu BusinessLine
- The strong subscription from Qualified Institutional Buyers (QIBs) in the Initial Public Offering (IPO) of BlueStone demonstrates the interest of these financial institutions in the technology-driven Indian business sector.
- As BlueStone's IPO showed, the strategy of investing in a strategic business like technology-focused online jewellery retailing can be a lucrative venture for high-net-worth individuals (NIIs) and retail investors alike, given the potential growth in the market.
