.png "Bluestone Jewellery IPO opened to muted demand. Learn why investors showed caution despite strong revenue growth and unicorn status, and what it signals for future Indian D2C brand listings.")
Bluestone Jewellery IPO opened to muted demand. Learn why investors showed caution despite strong revenue growth and unicorn status, and what it signals for future Indian D2C brand listings.
Hi I am Aadi. I have an MBA in marketing and finance and I have spent the last few years helping retail and D2C startups crack investor narratives and growth puzzles. I have seen buzz turn into disappointment and vice versa. Let us unpack what Bluestone’s IPO actually tells us.
Summary:
Curious why a jewellery IPO that should shimmer ended up feeling a bit muted. Stay with me, there is more here than just subscription numbers.
1. Bluestone aimed to raise Rs 1540 crore through its IPO between August 11 and 13. It was subscribed 2.57 times overall.
2. Qualified institutional buyers subscribed more than four times their quota. Retail investors subscribed only around 1.3 times, while non institutional investors lagged at less than one time.
3. On the first day, only 39 percent of the issue was booked. The grey market premium slipped from about two percent to nearly zero by the close.
4. Financially, Bluestone reported Rs 1770 crore in revenue for FY25 but also posted a loss of Rs 222 crore. Margins stayed in the single digits, which hints at high operating costs.
5. Despite its unicorn valuation before listing, investors appear cautious toward expensive D2C brands that lack a clear path to profitability.
Bluestone entered the IPO with strong expectations, wearing its shiny D2C crown. Yet the response was more lukewarm than celebratory. On day one less than half the offer was subscribed. Institutional funds showed confidence but retail and non institutional investors barely showed interest.
The grey market also reflected the mood. The premium that initially signaled some optimism fell quickly to flat levels. That drop suggested caution among investors. Compared to other high profile IPOs like Nykaa and Zomato, which saw huge subscription multiples, Bluestone’s debut looked weak.
The company has grown rapidly. Revenues have more than doubled since FY23 and average order value has risen by 22 percent. But losses are widening. Inventory sitting in stores increases overhead and the omnichannel model that Bluestone promotes adds to costs.
The story feels familiar. A brand sells a big growth dream yet investors want more than growth alone. They want a road to profitability. The IPO demand shows that market participants are paying closer attention to financial health than to valuation hype. That does not mean Bluestone will not perform after listing. It might. But this debut raises real questions about how much brand power matters when the numbers do not add up.
5 Do’s and Don’ts for Founders, Investors, Entrepreneurs, Students and Traders:
1. Do focus on clean unit economics. Growth without profit clarity will not impress investors forever.
2. Do understand how revenues and costs scale in models like omnichannel retail.
3. Do pay attention to grey market signals like GMP. They often reflect investor sentiment before official numbers do.
4. Do not expect IPO success if losses remain large. Market confidence is tied to profitability.
5. Do not confuse unicorn valuation with guaranteed IPO success. Sentiment can change fast when clarity is missing.