Blue Jet Healthcare’s initial public offering (IPO) has garnered strong interest from non-institutional and retail investors on its first day. The IPO, valued at ₹840 crore, is a complete offer-for-sale, meaning the company will not receive any proceeds from the share sale. The IPO will close on October 27, and investors can bid for a minimum of 43 shares.
At the end of the first day, Blue Jet Healthcare’s IPO was subscribed to 69%. The non-institutional investor portion was fully subscribed, while the retail portion saw a 78% subscription rate. However, the qualified institutional buyer (QIB) portion had very minimal bids on the first day.
The price band for the IPO is set at ₹329-346 per equity share, and the company will not receive any proceeds from the sale. The IPO has appointed Kotak Mahindra Capital, ICICI Securities, J P Morgan India as the book running lead managers, and Link Intime India as the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.
According to subscription numbers, the QIB portion was subscribed only 0.01 times, while the non-institutional investor portion was subscribed 1.37 times, and the retail investor portion was subscribed 0.78 times. The total subscription rate stood at 0.69 times.
Blue Jet Healthcare, formerly known as Jet Chemicals since its inception in 1968, specializes in the manufacturing of pharma intermediates. The company operates under the brand name Blue Jet and produces contrast media intermediates, high-intensity sweeteners, saccharin, salts, and active pharmaceutical ingredients (APIs). It has developed over 100 products, with 40 of them currently being commercialized. The company operates three manufacturing facilities in Maharashtra.
In its last fiscal year, Blue Jet Healthcare reported revenue of ₹721 crore, with a consolidated profit after tax of ₹160 crore. Analysts believe that the company’s presence in niche categories with high entry barriers, along with its product development and process optimization capabilities, are impressive. The company also has established relationships and multi-year contracts with multinational clients for long-term supply agreements and logistics handling.
The IPO has received mixed reviews from analysts. Anand Rathi recommends a “subscribe-long term” rating to the IPO, stating that the company is fairly priced at a P/E ratio of 34x. Mehta Equities, while noting that the issue is fully priced, suggests that Blue Jet’s unique niche product segment and lack of immediate peers may attract demand and potentially lead to significant listing gains.
With the IPO set to close soon, investors will have a crucial decision to make regarding Blue Jet Healthcare’s potential and their investment in the company’s future.
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