Bluestone IPO subscribed 39% on debut as QIBs drive demand

Omnichannel retailer Bluestone’s initial public offering (IPO) was subscribed 39% on the first day of bidding on Monday, primarily led by strong traction from the qualified institutional buyers (QIB) category, with 57% of shares subscribed.

This is an unusual trend, as QIB participation typically accelerates in the later stages of the offering as institutional investors gauge broader market sentiment before bidding.

According to BSE data, the non-institutional investor category purchased 4% of their allocated shares, while retail investors subscribed to 38% of allocated shares. Notably, portions reserved for employees did not see any bids on the opening day.  

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Some recently listed consumer-facing companies have also seen tepid demand on day one of the IPO subscription. For instance, electric mobility firm Ather Energy, which went public in April this year, saw its IPO subscribed to only 16% on day one.

Bluestone's IPO comprises a fresh issue of shares worth Rs 820 crore and an offer for sale (OFS) of up to 1.39 crore shares by existing shareholders. The company has set a price band of Rs 492 to Rs 517 per share.

IPO subscriptions for anchor investors opened on Friday last week, with Bluestone raising Rs 693 crore from a clutch of domestic and foreign investors, including Amansa Holdings, SBI Life Insurance Company, Nippon India Mutual Fund (MF), Goldman Sachs, Aditya Birla SunLife MF, HDFC Life Insurance Co Ltd, Societe Generale, DSP India MF, PGIM India MF, Axis MF and Motilal Oswal MF, according to a circular uploaded on BSE's website.

The Gaurav Kushwaha-led company had initially filed its draft IPO papers in December last year with a mix of fresh issue of shares worth up to Rs 1,000 crore and an offer for sale of up to 2.39 crore shares, but it later trimmed its IPO size.

(The copy was updated with additional information)