Bluestone Jewellery & Lifestyle Ltd IPO

The company has not generated any profits since inception. The company has experienced loss of Rs. 2,218.37 million, Rs. 1,422.36 million and Rs. 1,672.44 million in Fiscal 2025, 2024 and 2023, respectively and had negative total equity of Rs. 718.26 million in Fiscal 2023. Any loss or negative total equity in future periods could adversely affect its operations, financial conditions, and the trading price of the company Equity Shares.

There have been certain instances of non-compliances, including with respect to certain secretarial/ regulatory filings for corporate actions taken by the Company in the past. Consequently, its may be subject to regulatory actions and penalties for any such non-compliance and the company business, financial condition and reputation may be adversely affected.

Its Repeat Revenue Ratio (defined as revenue generated by sales to repeat customers, i.e., customers who place an order more than once at any time previously) was 44.61%, 39.83% and 34.67% in Fiscal 2025, 2024 and 2023, respectively. If the company fails to convert existing customers into repeat customers or acquire new customers or fails to do so in a cost-effective manner, its may not be able to increase revenue or maintain profitability. Further, if the company fails maintain Average Order Value levels, which was Rs. 47,671.26, Rs. 41,204.71 and Rs. 32,038.38 in Fiscal 2025, 2024 and 2023, respectively, its may not be able to sustain the company revenue base and margins, which would have a material adverse effect on its business and results of operations.

The company purchase and manufacture inventory in anticipation of sales. Its inventory was Rs. 16,525.47 million, Rs. 9,912.21 million and Rs. 3,953.17 million as of March 31, 2025, 2024 and 2023, respectively. If the company fails to manage its inventory effectively, the company business and results of operations could be adversely affected.

Its Promoter, Gaurav Singh Kushwaha, has pledged certain of his Equity Shares with certain lenders. Any exercise of such pledge by the lender could dilute his shareholding, which may adversely affect its business and future prospectus.

The company has witnessed negative cash flows used in operating activities in Fiscal 2025 and 2024 amounting to Rs. 6,658.28 million and Rs. 1,811.64 million, respectively. Any negative cash flows in the future would adversely affect its cash flow requirements, which may adversely affect the company ability to operate its business and the company financial condition.

The Company will not receive any proceeds from the Offer for Sale.

Its Statutory Auditors have included certain emphasis of matters in their examination report.

The seasonality of its business affects the company quarterly results and places an increased strain on its operations.

Under-utilization of its existing manufacturing facilities and an inability to effectively utilize the company manufacturing capacities could have an adverse effect on its business, future prospects, and future financial performance.