BlueStone Shares List at a Discount

New Delhi, August 19, 2025: A weak debut was made by the shares of BlueStone Jewellery & Lifestyle on the stock exchanges today, with the stock being listed at a discount to its issue price. The shares, which were part of an initial public offering (IPO) of ₹1,541 crore, began trading at ₹510 on the National Stock Exchange (NSE) and ₹508.80 on the BSE, representing a drop of 1.35% and 1.59% respectively from the IPO issue price of ₹517.

The IPO, which had a price band of ₹492-₹517 per share, was open for subscription between August 11 and 13. A mixed response was seen from investors, with the issue being subscribed 2.72 times overall. Strong demand was shown by Qualified Institutional Buyers (QIBs), with their portion being subscribed 4.25 times. However, the retail portion was subscribed a more muted 1.38 times, and the Non-Institutional Investors (NIIs) section was undersubscribed, with only 0.57 times being subscribed.

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The tepid listing was largely anticipated, as the grey market premium (GMP) for the company’s shares had been trading at a flat rate of ₹0 ahead of the listing. This was in stark contrast to the earlier days of the IPO when the GMP had reached a high of ₹35. The decline in the GMP reflected a cooling of investor sentiment, with concerns being raised about the company’s sustained losses despite its impressive revenue growth.

The company, which was founded in 2011, has been expanding its presence rapidly, with 275 stores across 117 cities as of March 2025. While the company’s revenue from operations has shown significant year-on-year growth, its net losses have also been widening, reaching ₹222 crore in FY25. This has been attributed to high finance costs and expenses related to its aggressive expansion and marketing strategies.

With the listing now complete, the focus has shifted to the stock’s future performance. The company’s ability to chart a clear path to profitability will be closely watched by investors. While its strong brand recall and pan-India presence are seen as positives, the company’s continued losses and the intense competition in the jewellery retail market are being viewed as significant challenges that must be overcome. The shares are now being traded in the open market, with their value being determined by the forces of demand and supply.