BlueStone Jewellery's IPO commenced on Monday and was subscribed 39% on the first day. The company aims to raise a total of ₹1540.65 crore. The IPO will close on August 13th, and the shares will be listed on the NSE and BSE on August 19th. Investor response has been mixed.
BlueStone Jewellery IPO Update: BlueStone Jewellery, a manufacturer of gold and diamond jewelry, launched its IPO on Monday, which was subscribed 39 percent on the first day. The company intends to raise ₹1540.65 crore, for which a total of 2.98 crore shares will be issued. The IPO will close on August 13th, and the shares will be listed on the NSE and BSE on August 19th. Investor enthusiasm was limited on the first day, particularly in the NII category, with subscription at only 4 percent, while QIB and retail investors showed a good response.
Subscription Status of IPO: Category-wise Response Received
On the first day, the IPO received the best support from Qualified Institutional Investors (QIBs), who subscribed 57 percent. Meanwhile, retail investors also participated with 38 percent, which is considered satisfactory. However, the enthusiasm of Non-Institutional Investors was quite low, with only 4 percent subscription recorded. This indicates a lack of anticipated interest among investors. However, prior to the IPO launch, the company raised over ₹693 crore from anchor investors on Friday, which provided initial support to the IPO.
Price Band and Share Offering Details
BlueStone Jewellery has fixed the price band for its IPO at ₹492 to ₹517 per share with a face value of ₹1. A total of 2,97,99,798 shares will be issued, of which 1,58,60,735 will be under the fresh issue and 1,39,39,063 shares will be offered in the market through Offer For Sale (OFS). The money raised from the fresh issue will be used by the company for its working capital requirements and other general corporate purposes, which will further strengthen the business.
Potential Dates for Allotment and Listing
The IPO will close on August 13th, after which the allotment of shares will be done on August 14th. This is a mainboard IPO, which will be listed on both the major exchanges of the Indian stock market, BSE and NSE. Investors expect the company to be listed on both exchanges on August 19th. The performance of the company's shares on the listing day will reflect the company's actual demand in the market and investor confidence.
What Does IPO Response Mean?
IPO response means investor interest and reaction. When more people participate in an IPO, it means confidence in the company is increasing. This can lead to a good share price. If there is low subscription, the company benefits less and the share price may also be affected. Therefore, how many people are participating in the IPO is very important for investors.
