Blue Jet Healthcare IPO: Bidding ends today. Check GMP, subscription status, apply or not? | Mint
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Business News/ Markets / Ipo/  Blue Jet Healthcare IPO: Bidding ends today. Check GMP, subscription status, apply or not?
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Blue Jet Healthcare IPO: Bidding ends today. Check GMP, subscription status, apply or not?

Blue Jet Healthcare IPO receives positive response from investors. Blue Jet Healthcare IPO subscribed 7.94 times on day 3. Blue Jet Healthcare IPO opened for subscription on Wednesday, October 25 and will close today (Friday, October 27).

Blue Jet Healthcare IPO will open on Wednesday, October 25, and close on Friday, October 27. (https://bluejethealthcare.com/)Premium
Blue Jet Healthcare IPO will open on Wednesday, October 25, and close on Friday, October 27. (https://bluejethealthcare.com/)

Blue Jet Healthcare IPO opened for subscription on Wednesday, October 25 and will close today (Friday, October 27). Investor response to Blue Jet's IPO over the past two days has been overall quite favourable. On day 2, Blue Jet Healthcare IPO has been subscribed 1.32 times. Blue Jet IPO retail investors portion was subscribed 1.37 times, NII portion was subscribed 2.84 times, and Qualified Institutional Buyers (QIB) portion were booked just by 9%.

On day 1, Blue Jet Healthcare IPO was subscribed 69%, where the retail investors portion was subscribed 78%, NII portion was subscribed 1.37 times, and Qualified Institutional Buyers (QIB) portion was booked 1%.

Blue Jet Healthcare IPO price band has been fixed in the range of 329 to 346 per equity share of face value of 2.

Blue Jet Healthcare IPO has reserved not more than 50% of the shares in the public issue 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.

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Blue Jet IPO subscription status

Blue Jet Healthcare IPO has been subscribed 7.94 times on day 3. Blue Jet IPO retail investors portion was subscribed 2.22 times, NII portion was subscribed 13.59 times, and Qualified Institutional Buyers (QIB) portion were booked 13.72 times.

Blue Jet Healthcare IPO has received bids for 13,50,46,488 shares against 1,69,99,612 shares on offer, at 17:00 IST, according to data from the BSE.

Also Read: Blue Jet Healthcare IPO: Blue Jet IPO fully booked on day 3, subscribed 1.77 times so far

Blue Jet Healthcare IPO details

Blue Jet Healthcare IPO is completely a offer for sale (OFS) of 24,285,160 equity share; there is no fresh issue component, according to Red Herring Prospectus (RHP). Blue Jet Healthcare IPO size is 840.27 crore.

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.

Also Read: Blue Jet Healthcare IPO: Check GMP, subscription status on day 2, apply or not?

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.

Blue Jet IPO GMP today

Blue Jet Healthcare IPO GMP today or grey market premium was +10. On Thursday, Blue Jet Healthcare share price were trading at a premium of 34 in the morning, but drastically dropped to 2 in the evening, and settled at 10.

Today's GMP indicates Blue Jet Healthcare share price were trading at a premium of 10 in the grey market on Friday, according to investorgain.com 

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Blue Jet Healthcare share price was indicated at 356 apiece, which is 2.89% higher than the IPO price of 346.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Also Read: Blue Jet Healthcare IPO open for subscription: GMP, price band, issue details, 10 key things to know

Blue Jet IPO Review

Motilal Oswal Financial Services

“We like Blue Jet given its complex product portfolio, presence in niche space, strong client relationship and high entry barriers. The IPO is valued at 34x Q1FY24 P/E on an annualized basis. We believe the company could benefit from the planed capacity expansion and sector tailwinds. Hence, we recommend Subscribe to the IPO," said the brokaerage in the report.

Reliance Securities 

The brokerage claims that Blue Jet Healthcare is one of the cutting edge businesses in specialised markets, with over 20 years of experience, specific chemical skills, and specialised R&D labs to provide a range of goods in highly concentrated contrast media formulations. Going forward, the management is implementing a sensible strategy of diversifying revenues, with a focus on exports and a high-margin product mix.

"The increased expansion over the next 2 years for envisaged increase in demand and leveraging the customer relationships for pharma intermediates and API categories will boost earnings over the next few years. We recommend a SUBSCRIBE to the issue," said the brokerage.

Also Read: Blue Jet Healthcare IPO: GMP, subscription status, review, other details. Apply or not?

Nirmal Bang 

Blue Jet Healthcare has a solid track record of overall performance, according to the brokerage's analysis. Topline growth was robust, growing at a 10% CAGR between FY20 and FY23 and 24% on a year-over-year basis in Q1FY24. With the exception of FY23, when it recorded an EBITDA margin of 30.4% due to an increase in raw material prices and labour costs, it has consistently produced high operating margins of more than 35%.

On the other hand, Q1FY24 saw improvement due to a slowdown in the price of raw materials and other costs. We are unable to compare Blue Jet Healthcare with exact peers since there are no identified businesses that operate in a similar capacity to it, the brokerage explained. 

Also Read: Blue Jet Healthcare IPO: 10 key risks investors should know before subscribing to the issue

“However, we have done peer comparison with the set of companies having strong financials in pharmaceutical industry. Company’s ROE and ROCE for FY23 stood at 23.5% and 32.0% are slightly better compared with the average rate of peer performance of 23.3% and 30.2%, respectively. The issue is valued PE valuation of 33.9x based on Q1FY24 annualized EPS which appears reasonable when compared with an average valuation of selected peers of 34.3x. Thus, we recommend SUBSCRIBE to the issue," the brokerage said.

Choice Equity Broking

The brokerage claims that Blue Jet Healthcare is primarily a Contract Development and Manufacturing Organisation (CDMO), accounting for about 75% of its total revenue. It has a specialised product line and has built enduring relationships with its customers over the course of its business. Because of this, it can now generate almost 70% of its entire revenue from long-term contracts with these kinds of clients.

Also Read: Blue Jet Healthcare IPO: Blue Jet IPO raises 252.08 crore from anchor investors; details here

The company claimed significant commercial growth in FY20–23, but rising raw material costs had an adverse effect on profitability. Despite a threefold increase in net wealth, RoE was strong. In the future, Blue Jet Healthcare will profit from lower/stabilizing raw material prices as well as continued demand for its products. It has planned a number of brownfield and new construction projects, raising installed capacity by roughly 50% over FY25E.

Also Read: Blue Jet Healthcare IPO: Five customers drive 76% of company's revenue

"There are no comparable peer having product and business operations similar to Blue Jet Healthcare. The above peers are considered only to benchmark the demanded valuation. At higher price band, Blue Jet Healthcare is demanding a TTM P/E multiple of 34x (to its TTM EPS of Rs. 10.2), which is at discount to the adjusted peer average. Thus considering the above observations, we assign a “SUBSCRIBE" rating for the issue," the brokerage said. 

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 27 Oct 2023, 09:48 AM IST
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