Investors face potential financial setbacks as Bluestone reduces IPO valuation, prompting concern among stakeholders.
Bluestone, a Bengaluru-based jewellery firm, is making headlines with its initial public offering (IPO). The company, which has seen early-stage venture capital investors like Saama Capital, Accel Partners, and Kalaari Capital experience gains from the IPO, is offering shares to the public at a price band of ₹492 to ₹517 per share, with a total issue size of about ₹1,540.65 crore.
Late-stage investors, who joined the cap table in the last year, could potentially realize a modest gain of about 1.7% to 1.9% per share on listing. This is based on grey market premiums and estimated listing prices around Rs 526–527, compared to the IPO upper price band of Rs 517 per share.
On Day 2 of the IPO subscription, grey market premium suggested a potential listing gain of approximately 1.9%. Analysts recommend subscribing with a long-term view, citing robust revenue growth, strong market positioning, and expected improved profitability as stores mature, suggesting potential for further upside beyond the listing gain.
Meanwhile, the article does not discuss the reasons behind Bluestone's decision to slash its IPO valuation. Comparisons with other peers, such as Titan, after the slashed IPO valuation are also not detailed.
Elsewhere, Tata Capital, backed by Tata Sons, is planning its own IPO with a potential valuation of $16 billion. The International Finance Corporation (IFC) stands to gain significantly from Tata Capital's IPO.
In a separate development, Accel-backed Renee Cosmetics has raised funds in a Series C round, with Playbook Partners leading the investment of $30 million.
It's important to note that the specific challenges facing late-stage investors in Bluestone are not detailed in the article. The article also does not provide details on the performance of Bluestone compared to its peers after the slashed IPO valuation. Nonetheless, the IPO of Bluestone is generating returns for early-stage investors, making it an exciting time for the jewellery sector.
The IPO of Bluestone offers opportunities for late-stage investors, who could potentially gain around 1.7% to 1.9% per share on listing. Tata Capital, a company backed by Tata Sons, is planning its own IPO with a potential valuation of $16 billion, contributing to the growth and finance of the involved parties.
