In the world of private capital, where fortunes are built quietly and exits are timed to perfection, few deals shine as brightly as BlueStone’s. The red herring prospectus of BlueStone Jewellery & Lifestyle, which has hit the market with its IPO, reveals a standout transaction between two marquee investors — the late Ratan Tata’s family office, RNT Associates, and Hero Enterprise Venture Partners chairman Sunil Kant Munjal.

On August 8, 2014, RNT Associates had invested in BlueStone, subscribing to 78,254 preference shares and 100 equity shares at ₹382.88 each, for a total outlay of ₹3 crore. It was a measured wager on an early-stage online jewellery brand, backed by founder Gaurav Singh Kushwaha’s ambition to disrupt a centuries-old business model with digital-first execution.

Nearly eight years later, on June 6, 2022, RNT Associates sold its entire stake to Munjal and other partners in Hero Enterprise Partner Ventures at ₹2,453.55 per share, valuing the block at ₹19.22 crore — a move that delivered an absolute gain of ₹16.22 crore, translating into a 540.8% return and a compound annual growth rate of 26.76% over the holding period.

For Munjal, the deal was a straightforward investment purchase at prevailing market terms, and after the conversion of preference shares his weighted average cost of acquisition works out to ₹262.76 per equity share. With BlueStone’s IPO now priced between ₹492 and ₹517, he stands to gain ₹254.24 per share at the top end — a 96.8% return — and if he sells his entire 1.93 million shares in the offer for sale at ₹517, the proceeds could touch ₹99.78 crore, implying an absolute gain of ₹49.07 crore and a CAGR of 25.31% in just over three years. In 2023, Sunil Kant Munjal had stepped down as the joint managing director of the country’s largest two-wheeler manufacturer Hero MotoCorp, as part of the division of BML Munjal Group entities.

BlueStone’s IPO, which closes on August 13, comprises a fresh issue of ₹820 crore and an offer for sale of 1.4 crore shares, including Munjal’s stake and those of Kalaari Capital and Accel. Ahead of the offering, the omnichannel jeweller raised ₹693.3 crore from 20 anchor investors, including Societe Generale, Goldman Sachs, Nippon India, New York State Teachers Retirement System, and Amansa Holdings, allotting 1.34 crore shares at ₹517 a share.

At the upper band, BlueStone is eyeing a valuation of $890 million, down 8% from its August 2024 fundraise valuation of $970 million. Founded in 2011, it now sells gold and studded jewellery online and through an expanding network of retail outlets, targeting customers aged 25–45 years with designs that blend traditional craftsmanship and contemporary style. In FY25, the company’s net loss widened 56% to ₹221.8 crore from ₹142.2 crore in FY24, even as operating revenue rose 39.9% to ₹1,770 crore from ₹1,265.8 crore.