Blue Jet Healthcare IPO opens : GMP, issue details, 10 key things to know

Blue Jet Healthcare IPO opens for subscription, October 25, marking a significant event in the world of pharmaceutical and healthcare intermediaries. With a focus on delivering pharmaceutical and healthcare ingredients, this IPO is generating substantial interest from investors. In this article, we’ll delve into the details of the Blue Jet Healthcare IPO, including its price range, lot size, key company information, and other essential factors to consider.

About Blue Jet Healthcare

Blue Jet Healthcare is an intermediary company that specializes in the production and distribution of pharmaceutical and healthcare ingredients. The company has a notable history, being the pioneer in India for producing saccharin and its derivatives, which are artificial sweeteners. In addition to sweeteners, they’ve expanded into the production of contrast medium intermediates used in MRI and CT examinations. Blue Jet Healthcare primarily focuses on three categories of products: active pharmaceutical components and pharma intermediates, high-intensity sweeteners, and contrast media intermediates.

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Capital Raised Through Anchor Book Process

Prior to the IPO, Blue Jet Healthcare raised a capital of ₹252.08 crore through an anchor book process. This process involved 22 investors participating in the anchor book offering on October 23, 2023.

IPO Price Details

The Blue Jet Healthcare IPO has a price band ranging from ₹329 to ₹346 per equity share with a face value of ₹2. The price to earning ratio based on diluted earnings per share (EPS) for fiscal 2023 is 35.64 times at the floor price and 37.49 times at the cap price.

Unique Position in the Market

Blue Jet Healthcare stands out in the Indian market because there are no listed companies in India that engage in a similar line of business as them. This uniqueness could provide advantages for the company in terms of competition and market positioning.

Identified Risks

The company has identified several potential risks in its Red Herring Prospectus (RHP). These include a heavy reliance on a small number of important clients, exposure to regulated markets like Europe and the US, and the necessity of successfully introducing new products to the market. Additionally, factors like a fall in India’s credit ratings or the inability to transfer cost increases to clients due to inflation could impact the company’s profitability.

Financial Performance

As per reports, between March 31, 2022, and March 31, 2023, Blue Jet Healthcare Limited’s profit after tax (PAT) decreased by 11.88% while its revenue climbed by 5.98%.

10 Key Things to Know about Blue Jet Healthcare IPO:

1. IPO Dates: The Blue Jet Healthcare IPO opens for subscription on October 25, 2023, and closes on October 27, 2023.

2. Price Band: The IPO’s price band ranges from ₹329 to ₹346 per equity share.

3. Lot Size: The lot size for the IPO is 43 equity shares, with multiples of 43 equity shares thereafter.

4. IPO Type: It’s an offer for sale (OFS) of 24,285,160 equity shares, and there’s no fresh issue component.

5. IPO Size: The total size of the Blue Jet Healthcare IPO is ₹840.27 crore.

6. Promoters: The company’s promoters are Shiven Akshay Arora, Akshay Bansarilal Arora, and Archana & Akshay Arora. Shiven Akshay Arora will sell up to 5,918,849 equity shares, while Akshay Bansarilal Arora will sell up to 18,366,311 equity shares.

7. Listing Date and Allotment: The basis of allotment of shares is tentatively scheduled for November 1, 2023. Refunds will be initiated on the same day, and shares will be credited to the demat accounts of allottees on November 3, 2023. The IPO shares are expected to be listed on BSE and NSE on November 6, 2023.

8. Lead Manager and Registrar: The book running lead managers for the Blue Jet Healthcare IPO are Kotak Mahindra Capital Company Limited, ICICI Securities Limited, and J.P. Morgan India Private Limited. The registrar for the offering is Link Intime India Private Ltd.

9. IPO Reservation: The IPO has reserved not more than 50% of the shares for Qualified Institutional Buyers (QIB), not less than 15% for Non-Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors.

10. Grey Market Premium (GMP): As of the latest available information, the Grey Market Premium for Blue Jet Healthcare IPO stands at +34(Blue Jet IPO GMP Today), indicating that the shares were trading at a premium of ₹34 in the grey market. This suggests strong early demand for the shares.

Blue Jet IPO Review

Blue Jet IPO Review: Investor sentiment is positive regarding Blue Jet Healthcare’s future prospects. The company has carved a niche in the global market and enjoys strong relationships with renowned customers and FMCGs. It is actively expanding its capacity and aiming for improved performance in the coming years. However, some experts note that the IPO appears to be fully priced based on annualized FY24 earnings, suggesting that investors might be looking at medium to long-term rewards.

In conclusion, the Blue Jet Healthcare IPO is generating significant interest in the market, driven by the company’s unique position and strong growth potential. Investors are advised to carefully consider the risks and opportunities before making an investment decision, and it is always recommended to consult with certified experts for financial advice.

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