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MUMBAI : Mumbai-based pharmaceutical ingredients maker Blue Jet Healthcare is planning to tap the markets to raise funds, joining a long queue of specialty chemicals companies that have raised funds through IPOs in the last 18 months, said two people aware of the development.

The company is engaged in making ingredients such as saccharin and intravenous contrast dye used in medical X-rays, MRI, CT scans, angiography and ultrasound imaging.

“The company is working with investment banks Kotak Mahindra Capital, ICICI Securities and JP Morgan on the proposed IPO, which is targeted for next year. They could raise around $100 million or more. Capital will be used for reducing debt, funding working capital requirements and future growth of the business," said one of the people cited above, requesting anonymity as he is not authorized to speak with the media.

“Speciality ingredient makers, whether for pharma or other industrial purposes, have seen a strong interest from investors post the pandemic. This has been driven by the supply chain realignment that has been seen owing to the ‘China plus one’ strategy adopted by large global companies. Indian companies have seen substantial gains from this trend," he added.

In the last 18 months several specialty ingredient makers such as Rossari Biotech, Laxmi Organic, Clean Science & Technology and Tatva Chintan Pharma Chem, have raised funds through IPOs. Rossari Biotech’s 496 crore IPO in July, for instance, received massive investor interest, resulting in the IPO getting subscribed 79.37 times on its final day. The company, which operates in 18 countries including India, had fixed price band of 423-425 for the IPO.

Emails and text messages sent to Blue Jet’s top management did not elicit a response till press time.

Blue Jet Healthcare, headquartered in Mumbai, has three operational manufacturing facilities and one recently acquired manufacturing site in Maharashtra. The company is promoted by Akshay Arora.

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