BlueStone, Aye Finance Get SEBI Nod For Their IPOs

Markets regulator SEBI has approved the IPOs of jewellery startup BlueStone and NBFC Aye Finance. While the regulator issued an observation letter to BlueStone on April 1, it issued the letter to Aye Finance on April 3.

In SEBI’s parlance, the issuance of an “observation letter” signifies that the regulator has reviewed a company’s draft red herring prospectus (DRHP) and doesn’t have any immediate concerns, essentially giving the company the go ahead to proceed with the public offering. 

The markets regulator is still reviewing the IPO papers of new-age tech companies PhysicsWallah and DevX.

Besides, other startups that have received the regulator’s approval for their respective IPOs in recent times include Smartworks, IndiQube, and EV maker Ather Energy. All three of the aforementioned entities are yet to file their respective RHPs. 

Meanwhile, SEBI put the IPO bid of WeWork India in “abeyance” earlier last month. In SEBI’s parlance, “kept in abeyance” means that the regulator’s observations on draft papers are temporarily put on hold. 

BlueStone’s IPO Bid

The omnichannel jewellery brand filed its IPO papers in December last year for an IPO comprising fresh issue of shares up to INR 1,000 Cr. Besides, the company’s public offering will also feature an offer-for-sale component of up to 2.4 Cr equity shares.

The existing investors who will offload their shares in BlueStone include Accel, Kalaari Capital, IvyCap Ventures, Iron Capital, Saama Capital and Sunil Kant Munjal.  

From the fresh issue, BlueStone plans to utilise a large chunk, INR 750 Cr to be exact, to meet its working capital requirements. It plans to invest the remaining IPO proceeds to set up new stores, repay loans, undertake strategic initiatives, form partnership and joint ventures, among others.

Founded by Gaurav Singh Kushwaha in 2011, BlueStone offers over 7,700+ certified jewelry designs made from metals like gold, platinum, diamonds and gemstones through 250 stores across 100 cities in India and its website. 

It has raised $219.31 Mn funding since its inception. 

In the run up to the IPO, BlueStone managed to cut its loss by 15% year-on-year (YoY) to INR 142.2 Cr in FY24. Meanwhile, its operating revenue for the fiscal jumped 64% YoY to INR 1,265.8 Cr.

Aye Finance’s Public Issue

The NBFC filed the DRHP for an INR 1,450 Cr IPO, consisting of a  fresh issue of equity shares worth INR 885 Cr and an offer-for-sale (OFS) of up to INR 565 Cr, on December 17. 

The IPO will see investors like LGT Capital, CapitalG, A91 Fund, MAJ Invest, Alpha Wave, among others, offload their shares.

As an NBFC engaged in disbursing loans to micro-scale MSMEs, Aye Finance plans to utilise the fresh proceeds to meet the future capital requirements that will arise out of business expansion. 

As of September 2024, Aye Finance’s AUM (assets under management) stood at INR 4,979.76 Cr and had 5,08,224 active unique customers. In the first six months of FY25, the NBFC’s net profit jumped 37% YoY to INR 107.80 Cr. For H1 FY25, its revenue from operations stood at INR 692.24 Cr, up 47% from INR 472.01 Cr in H1 FY24. 

Will Tariff Turmoil Play Spoilsport? 

It is pertinent to mention that since December, when the companies filed their DRHP, the Indian market has seen an extended period of volatility. 

The negative market sentiment, due to concerns over high valuations of Indian equities market, US’ tariffs on all countries across the globe, and fears of a global trade war, has resulted in the Indian benchmark indices decline about 10% since December. 

Amid all these, it remains to be seen when the companies decide to launch their public issues. Ather Energy, which received SEBI’s nod for its public issue on December 30, 2024, is yet to file its RHP.