Blue Jet Healthcare IPO open for subscription: GMP, price band, issue details, 10 key things to know | Mint
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Business News/ Markets / Ipo/  Blue Jet Healthcare IPO open for subscription: GMP, price band, issue details, 10 key things to know
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Blue Jet Healthcare IPO open for subscription: GMP, price band, issue details, 10 key things to know

Blue Jet Healthcare IPO opens for subscription. Blue Jet Healthcare IPO raised ₹252.08 crore through anchor book process. Blue Jet IPO has reserved shares for QIBs, NIIs, and retail investors.

Blue Jet Healthcare IPO opens for subscription on Wednesday, October 25, and closes on Friday, October 27. Premium
Blue Jet Healthcare IPO opens for subscription on Wednesday, October 25, and closes on Friday, October 27.

Blue Jet Healthcare Limited IPO: Blue Jet Healthcare IPO opened for subscription on Wednesday, October 25 and will close on Friday, October 27. On day 1 of bidding,  Blue Jet Healthcare IPO was subscribed 69%. Blue Jet IPO retail investors portion was subscribed 78%, NII portion was subscribed 1.37 times, and Qualified Institutional Buyers (QIB) portion were booked just by 1%.

Also Read: Blue Jet Healthcare IPO: Issue subscribed 69% on day 1; NII portion fully booked

On Monday, October 23, Blue Jet Healthcare IPO raised a capital of 252.08 crore through an anchor book process, where 22 investors took part in the anchor book offering.

Blue Jet Healthcare IPO floor price is 164.50 times the face value of the equity shares and the cap price is 173 times the face value of the equity shares. The price to earning ratio based on diluted earnings per share (EPS) for fisal 2023 at the floor price is 35.64 times at the cap price is 37.49 times.

Blue Jet Healthcare is an intermediary company that provides pharmaceutical and healthcare ingredients. In India, Blue Jet Healthcare was the pioneer in producing saccharin and its derivatives, or artificial sweeteners.

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There are no listed companies in India that engage in a business similar to that of Blue Jet Healthcare, said the company in its Red Herring Prospectus (RHP).

A few major risks that the company has identified in its Red Herring Prospectus (RHP) include that it depends on selling its products to a small number of important clients. A decline in their demand for the company's products, the loss of one or more of these clients, or a worsening of their financial situation or prospects could all have a negative impact on the business's operations, financial situation, and cash flows.

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

Here are the 10 key things to know about Blue Jet Healthcare IPO;

Blue Jet Healthcare IPO subscription status on day 2: Blue Jet Healthcare IPO has been subscribed 1.32 times on day 2. On day 2, 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%.

Blue Jet Healthcare IPO price band: 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 lot size: Blue Jet IPO lot size is 43 equity shares and in multiples of 43 equity shares thereafter.

Blue Jet 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 RHP. Blue Jet Healthcare IPO size is 840.27 crore.

Also Read: Blue Jet Healthcare IPO: Check latest GMP, other issue details ahead of opening

Blue Jet IPO 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.

Blue Jet IPO listing date and allotment details: Tentatively, Blue Jet IPO basis of allotment of shares will be finalised on Wednesday, November 1 and the company will initiate refunds on the same day, while the shares will be credited to the demat account of allottees on Friday, November 3. Blue Jet Healthcare IPO shares are likely to be listed on BSE and NSE on Monday, November 6. If in case, the company decides to switch to T+3 norm, the dates will get preponed.

Lead Manager and Registrar of Blue Jet Healthcare IPO: 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 Healthcare IPO reservation: 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.

Blue Jet IPO GMP today: Blue Jet Healthcare IPO GMP today or grey market premium is +34, similar to the previous session. This indicates Blue Jet Healthcare share price were trading at a premium of 34 in the grey market on Thursday, 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 380 apiece, which is 9.83% higher than the IPO price of 346.

Blue Jet IPO Review: “Blue Jet Healthcare has created a niche place in the global markets for the products manufactured by it and enjoys long term relationship with marquee customers and FMCGs. It is on capacity expansion spree and hopes to improve its performance in coming years. On the basis of annualized FY24 earnings, the issue appears fully priced. Investors may park funds for the medium to long-term rewards in this long race horse," said Dilip Davda, the contributing editor at Chittorgarh.

According to Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities, Blue Jet Healthcare IPO offer gives investors an opportunity to invest in a Speciality pharmaceutical company which offers niche products to innovator pharmaceutical companies. With 20 years’ experience in manufacturing of contrast media intermediates and presence in making complex chemistries niche product categories in high-intensity sweeteners and contrast media intermediates gives high entry barriers to its competitors.

"We also believe Blue Jets long standing relationships and multi-year contracts with multinational clients helps them to take care not only of the long term supply contracts but also to manage the warehousing and logistics for their customer.

By looking at the financials, Blue Jets has delivered good growth in FY 2022 but a subdued growth in FY 2023, achieving growth in Revenue/PAT of 37%/34% for FY 2022 and 5.49%/-12% in FY 2023. 

On Valuation parse at upper price band of 346/- and based on annualized earnings and fully diluted post-IPO paid-up capital, the issue is asking for a Market Cap of 6002 crore with P/E of 34x on consolidated basis, which appears the issue is fully priced-in looking at the revenue and profit growth. Due the company presence in niche product segment and has no immediate peers to compare so the issue may fetch demand on first mover advantage due to which there could be a decent listing gains expected. Long term Investors should look at offer with 100% OFS issue which is an area of concern for new investors hence we recommend investors to “SUBSCRIBE WITH RISK" in Blue Jet IPO offer with a decent listing gain perspective," added Tapse.

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

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: 26 Oct 2023, 11:50 AM IST
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