Bluestone jewellery & lifestyle has faced implementation delays in its IPO fund utilization, with Rs. 56.63 crore remaining unutilized beyond the March 31, 2026 deadline stipulated in the offer document. The monitoring agency report by CARE Ratings Limited reveals significant concerns about the company's fund deployment timeline and financial performance.

Monitoring Agency Report Highlights Delays

CARE Ratings Limited, serving as the monitoring agency, submitted its quarterly report for the period ended March 31, 2026, revealing that the company failed to meet the deployment timeline specified in the IPO prospectus. The report indicates that gross IPO proceeds of Rs. 56.63 crore remain unutilized as of the quarter end, with no supporting approvals received for timeline extension.

Fund Utilization Breakdown

The detailed utilization pattern shows mixed progress across different objectives. For working capital requirements, the company utilized Rs. 725.65 crore out of the allocated Rs. 750.00 crore, leaving Rs. 24.35 crore unutilized. This included Rs. 200.00 crore deployed during the quarter, primarily Rs. 30.00 crore for gold purchases and Rs. 170.00 crore placed as fixed deposits for gold metal loan margins.

Financial Performance Concerns

The monitoring agency report also highlighted the company's challenging financial position, noting net losses of Rs. 142.24 crore in FY24 and Rs. 219.21 crore in FY25. While losses reduced to Rs. 18.00 crore in the nine months of FY26, the continued losses raise questions about the viability of the fund deployment objectives.

Deployment of Unutilized Proceeds

The unutilized Rs. 56.63 crore has been deployed in fixed deposits worth Rs. 50.00 crore with AU Small Finance Bank at 7.05% interest rate, maturing on October 3, 2026. The remaining Rs. 6.63 crore remains in the Axis Bank public offer account, with the monitoring agency noting that the company has transferred funds from the monitoring agency account to current accounts, resulting in comingling of funds.

Regulatory Compliance and Board Response

The Board of Directors approved the utilization of unutilized IPO proceeds for FY 2026-27, stating that the unutilized portion will be used for general corporate purposes. The company maintains that the offer document allows for utilization in the next fiscal year if the scheduled deployment is not met, though the monitoring agency noted the absence of formal approvals for timeline extension.

The report was signed by Managing Director Gaurav Singh Kushwaha and submitted to both BSE and NSE on April 23, 2026, maintaining the company's commitment to regulatory transparency despite the implementation delays.

Bluestone jewellery & lifestyle Limited announced that its Nomination and Remuneration Committee has approved the grant of 2,09,319 employee stock options under the company's Employee Stock Option Plan 2014. The approval was granted during the committee's meeting held on April 16, 2026, in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

ESOP Grant Details

The stock option grant encompasses significant benefits for eligible employees of the jewellery and lifestyle company. The options are structured under the Bluestone Jewellery and Lifestyle Limited – Employee Stock Option Plan 2014, which operates in accordance with the Securities and Exchange Board of India regulations.

Vesting and Exercise Framework

The ESOP follows a structured four-year vesting schedule designed to retain talent and align employee interests with company performance. Under this framework, 25% of the granted options vest upon completion of one year from the grant date. The remaining unvested options vest proportionately on a monthly basis thereafter until the completion of the four-year vesting period.

The exercise period for the stock options extends up to ten years from the date of vesting, providing employees with substantial flexibility. However, the actual exercise timeline depends on various employment scenarios, including resignation, retirement, termination, or other circumstances as detailed in the plan's annexure.

Employment Scenario Guidelines

The ESOP plan includes comprehensive guidelines for different employment situations. In cases of resignation or termination (excluding misconduct), vested options remain exercisable for 60 days after the last working day, while unvested options are cancelled immediately. For retirement scenarios, vested options can be exercised within 60 days, and unvested options continue to vest according to the original schedule.

Regulatory Compliance

The company has ensured full compliance with regulatory requirements by filing the necessary disclosures with both BSE Limited and the National Stock Exchange of India Limited. The disclosure has also been made available on the company's investor relations website, maintaining transparency with stakeholders and regulatory authorities.