According to two sources with firsthand knowledge of the situation, Singapore’s Temasek Holdings is exploring a $100 million investment in Indian jewellery maker BlueStone for a 20% interest.
One of the individuals, who wished to remain anonymous since the topic is confidential, estimated that the investment would be worth close to $500 million to Bengaluru-based BlueStone, which is also funded by venture capital company Accel and Indian industrialist Ratan Tata.
With demand soaring after the pandemic, the proposed transaction might support BlueStone’s intentions to aggressively grow in India, the country with the second-highest jewellery consumption behind China.
300 more outlets will be opened by the jewellers by 2024, as originally announced. As of right now, its website lists more than 150 stores.
In addition to the thousands of small and large local independent jewellery stores that make up the market’s majority, BlueStone also competes with branded establishments like Kalyan Jewellers and Tanishq, which are owned by the Titan Company.
Companies like BlueStone and CaratLane, in contrast to many conventional jewellers, also provide internet sales.
Reuters is the first to reveal the specifics of an investment amount, the potential valuation, and other financial elements of the proposed purchase, even though Temasek’s interest in investing in Bluestone has already been made public.
According to one of the individuals, Temasek is conducting due diligence on the purchase, and if negotiations are successful, a deal may be reached as early as July or September.
When Reuters asked BlueStone CEO Gaurav Kushwaha for a comment, he did not immediately answer, and Temasek declined.
According to Temasek’s India head, Ravi Lambah, the company has been investing $1 billion a year in India for the past six years, and as of last month, Temasek had $16 billion in underlying exposure to India or more than 5% of its $297 billion worldwide portfolio.
The negotiations for the deal also take place at a time when many Indian entrepreneurs are finding it difficult to find new funding, which has forced them to postpone their initial public offerings and lay off staff because investors are doubting their exorbitant valuations. According to data firm CB Insights, only $2 billion was raised by startups in the first quarter of 2023, which is a 75% decrease from the same period in 2018.
According to a joint statement released by the parties, Temasek previously bought a further 41% share in Manipal Health Enterprises to gain majority control of the Bengaluru-based company.
But according to sources, the Temasek equity purchase will cost more than Rs 16,300 crore, valuing Manipal Health Enterprises (MHE) at over Rs 40,000 crore. This would make it the biggest acquisition ever in the Indian healthcare industry.
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