Temasek considers investing $133 million in Indian jeweller BlueStone: Sources
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Temasek has been investing US$1 billion annually in India over the past six years.
ST PHOTO: KUA CHEE SIONG
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BENGALURU/SINGAPORE - Singapore’s investment company Temasek is considering investing US$100 million (S$133 million) in Indian jeweller BlueStone for a stake of about 20 per cent, two sources with direct knowledge of the matter told Reuters.
The investment would value Bengaluru-based BlueStone, also backed by venture capital firm Accel and Indian industrialist Ratan Tata, at close to US$500 million, said one of the sources, who declined to be identified as the matter is private.
The potential deal could boost BlueStone’s plans to expand aggressively in India, the second-largest jewellery-consuming nation behind China, as demand surges after the Covid-19 pandemic.
The jeweller previously disclosed plans to open 300 stores by 2024. It has over 150 stores now, according to its website.
BlueStone operates in a market that is dominated by thousands of small and large local independent jewellery stores, but also branded outlets such as Titan Company-owned Tanishq and CaratLane, and Kalyan Jewellers.
Unlike many traditional jewellers, companies such as BlueStone and CaratLane also offer online sales.
While Temasek’s interest in investing in Bluestone was previously reported, Reuters is first to report details of an investment amount, the potential valuation and other financial details of the potential deal.
Temasek is doing due diligence on the transaction and a deal could be struck as early as July to September if talks are successful, said one of the sources.
BlueStone chief executive Gaurav Kushwaha did not immediately respond to Reuters’ request for comment, while Temasek declined to comment.
Temasek has been investing US$1 billion annually in India over the past six years and its underlying exposure to India is US$16 billion, which is over 5 per cent of Temasek’s global US$297 billion portfolio, its India head Ravi Lambah told The Economic Times in April.
The deal talks also come at a time when many Indian start-ups have been struggling to raise fresh funds, forcing them to delay initial public offerings and sack employees as investors question their sky-high valuations. Start-ups raised just US$2 billion in the first quarter of 2023, 75 per cent lower than the same period in 2022, according to data firm CB Insights. REUTERS
