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

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.

Blue Jet Healthcare branched out into contrast medium intermediates, which are utilised in MRI and CT examinations. The company primarily sells products in three categories: active pharmaceutical components and pharma intermediates, high-intensity sweeteners, and contrast media intermediates.

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.

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: Check latest GMP, other issue details ahead of opening

Furthermore, a sizable amount of the company’s operating revenue comes from sales in Europe and the US, two regulated markets; third, the business, its financial situation, and its future prospects will all suffer if new products are not successfully introduced to the market on time.

A fall in India’s credit ratings could have an impact on the equity share price on the external front.The company may not be able to transfer cost increases to clients in proportionately if inflation increases in India, which could result in a fall in profits.

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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%, as per reports.

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

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

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. 

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 +63, similar to the previous session. This indicates Blue Jet Healthcare share price were trading at a premium of ₹63 in the grey market on Tuesday, 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 ₹409 apiece, which is 18.21% 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.

Also Read: Blue Jet Healthcare IPO opens on October 25, price band set at ₹329-346 apiece

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Updated: 24 Oct 2023, 01:30 PM IST