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Bluestone’s IPO saw a strong start with 39% subscription on the first day, led by a 57% uptake from Qualified Institutional Buyers (QIBs). Retail investors subscribed to 38% while non-institutional investors lagged, managing only 4% subscription. With a fresh issue of Rs 820 crore and a price band between Rs 492 and Rs 517, Bluestone’s strong anchor investor support bolsters confidence amidst a cautious IPO market.

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Bluestone IPO Subscribed 39% on Day One, Led by Strong QIB Demand

Bluestone, the omnichannel retailer, witnessed a robust initial public offering (IPO) subscription of 39% on the very first day of bidding, highlighting strong institutional interest and investor sentiment. The IPO garnered notable traction primarily from the qualified institutional buyers (QIB) segment, which subscribed to 57% of the shares allocated in this category—an unusual pattern given that QIB participation typically intensifies in later stages of IPO bidding.

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Detailed Breakdown of Bluestone IPO Subscription

• QIB Subscription: 57% on Day One
• Retail Investors: Subscribed to 38% of allocated shares
• Non-Institutional Investors: Subscribed to 4% of their allocation
• Employees: Reserved shares saw no bids on opening day

According to data from the Bombay Stock Exchange (BSE), this early surge in Qualified Institutional Buyers’ participation underscores strong confidence from mutual funds, insurance companies, and other institutional investors. On the other hand, retail investors also showed a keen interest by subscribing to 38% of their share allocation, while non-institutional investors were relatively subdued.

Comparison with Other Recent IPOs

Bluestone’s promising subscription contrasts with some other consumer-facing IPOs in recent months. For example, Ather Energy, an electric mobility firm that went public in April, recorded only a 16% subscription on the first day. This comparison highlights Bluestone’s strong positioning and market enthusiasm.

Details of Bluestone IPO Size and Price Band

The IPO consists of a fresh issue of equity shares valued at Rs 820 crore alongside an offer for sale (OFS) of up to 1.39 crore shares by existing shareholders. The company set a price band for the public offering between Rs 492 and Rs 517 per share, intending to raise funds both for expansion and shareholder exit.

Anchor Investor Participation Bolsters Confidence

Anchor investors’ subscription opened prior to the public bidding, raising a substantial Rs 693 crore from a diverse group of investors. These include respected domestic and foreign institutions such as:

• Amansa Holdings
• SBI Life Insurance Company
• Nippon India Mutual Fund
• Goldman Sachs
• Aditya Birla SunLife Mutual Fund
• HDFC Life Insurance Co Ltd
• Societe Generale
• DSP India Mutual Fund
• PGIM India Mutual Fund
• Axis Mutual Fund
• Motilal Oswal Mutual Fund

This anchor allocation and backing from marquee names indicate strong institutional trust in Bluestone’s business model and growth prospects.

Background and IPO Filing History

Bluestone, led by CEO Gaurav Kushwaha, had initially filed its draft IPO papers in December last year. The original IPO proposal included a fresh equity issue up to Rs 1,000 crore and an offer for sale of up to 2.39 crore shares. However, the company later revised the IPO size downwards to the current level, balancing capital raising with market conditions.

What This Means for Investors and Market Watchers

The early subscription data for Bluestone’s IPO is a positive indicator amid a cautious IPO market, especially with the high participation from the QIB segment bucking the typical trend of late-stage institutional interest. This could reflect confidence in Bluestone’s omnichannel retail strategy, solid financials, and promising growth outlook.

Investors looking for exposure to the retail sector may find Bluestone’s IPO attractive, given the strong institutional support and healthy retail subscription rates. Additionally, the company’s relatively moderate price band suggests potential value for both retail and institutional investors.

Additional Resources

For more analysis on consumer-focused IPOs and institutional investment trends, check out recent market updates and performance reviews of similar companies.

Source

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