Blue Jet Healthcare’s IPO, valued at Rs 840.27 crore, opened for subscription on October 25, prompting numerous analysts to advise investors to subscribe. The company’s robust business prospects, coupled with greenfield expansion plans and a promising industry outlook, have generated significant investor interest. The issue’s price band has been set at Rs 329-346 per share.
This offering, comprising an offer-for-sale of 2.42 crore shares, directs the proceeds to selling shareholders, as there is no fresh issue component. Although the company will not receive any funds from the offer, its primary objective is to secure the advantages of listing shares on stock exchanges. Investors have until October 27 to subscribe, with the stock anticipated to be listed on November 6.
In the financial year 2022-23, Blue Jet Healthcare recorded a 5.5 percent growth in revenue, reaching Rs 721 crore. However, net profit decreased by 11.87 percent to Rs 160 crore. The first quarter of FY24 saw a significant profit surge, with a 58.4 percent increase to Rs 44.1 crore compared to the previous year. Revenue also rose by 24.2 percent, reaching Rs 179.5 crore.
Operating under a contract development and manufacturing organization (CDMO) model, the company specializes in three product categories: contrast media intermediates, high-intensity sweeteners, and pharma intermediates & active pharmaceutical ingredients (APIs). Blue Jet Healthcare currently manages three manufacturing facilities in Shahad (Unit I), Ambernath (Unit II), and Mahad (Unit III) in Maharashtra. Additionally, the company acquired a leasehold greenfield manufacturing site (Unit IV) in Ambernath in 2021, dedicated to pharma intermediate and API businesses, enhancing its operational capabilities and potential for future growth.
Blue Jet Healthcare’s upcoming IPO offers important details
1. Grey Market Premium: Shares are trading at a premium of ₹85 per share in the grey market, as noted by market observers.
2. IPO Dates: The public issue is open for bidding from October 25th to October 27th, 2023.
3. Issue Price: Blue Jet Healthcare has set the price band for the IPO at ₹329 to ₹346 per equity share.
4. IPO Size: The company aims to raise ₹840.27 crore through its book build offer, which exclusively comprises an offer for sale (OFS).
5. Lot Size: Investors can apply for this IPO in lots, with one lot consisting of 43 company shares.
As per the reports
IPO Details
| IPO Date | October 25, 2023 to October 27, 2023 |
| Listing Date | [.] |
| Face Value | ₹2 per share |
| Price Band | ₹329 to ₹346 per share |
| Lot Size | 43 Shares |
| Total Issue Size | 24,285,160 shares (aggregating up to ₹840.27 Cr) |
| Offer for Sale | 24,285,160 shares of ₹2 (aggregating up to ₹840.27 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 17,34,65,425 |
| Share holding post issue | 17,34,65,425 |
Blue Jet Healthcare IPO Reservation
Blue Jet Healthcare IPO offers 24,285,160 shares. 4,857,032 (20.00%) to QIB, 3,642,774 (15.00%) to NII, 8,499,806 (35.00%) to RII 7,285,548 (30.00%) to Anchor investors. 197,669 RIIs will receive minimum 43 shares and 2,017 (sNII) and 4,034 (bNII) will receive minimum 602 shares. (in case of oversubscription)
Blue Jet Healthcare IPO Timeline (Tentative Schedule)
Blue Jet Healthcare IPO opens on October 25, 2023, and closes on October 27, 2023.
| IPO Open Date | Wednesday, October 25, 2023 |
| IPO Close Date | Friday, October 27, 2023 |
| Basis of Allotment | Wednesday, November 1, 2023 |
| Initiation of Refunds | Wednesday, November 1, 2023 |
| Credit of Shares to Demat | Friday, November 3, 2023 |
| Listing Date | Monday, November 6, 2023 |
| Cut-off time for UPI mandate confirmation | 5 PM on October 27, 2023 |
Blue Jet Healthcare IPO Lot Size
Investors can bid for a minimum of 43 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 43 | ₹ 14,878 |
| Retail (Max) | 13 | 559 | ₹ 1,93,414 |
| S-HNI (Min) | 14 | 602 | ₹ 2,08,292 |
| S-HNI (Max) | 67 | 2,881 | ₹ 9,96,826 |
| B-HNI (Min) | 68 | 2,924 | ₹ 10,11,704 |
| Lot Size Calculator | |||
Blue Jet Healthcare IPO Promoter Holding
Akshay Bansarilal Arora, Shiven Akshay Arora and Archana & Akshay Arora are the promoters of the company
| Share Holding Pre Issue | 100% |
| Share Holding Post Issue | 86% |
About the company
Established in 1968, Blue Jet Healthcare is a pharmaceutical and healthcare ingredient company. It was the pioneering manufacturer of saccharin and its salts in India, expanding its offerings to include contrast media intermediates used in medical imaging technologies like CT scans and MRIs. The company specializes in three product categories: contrast media intermediates, high-intensity sweeteners, and pharma intermediates and active pharmaceutical ingredients. Blue Jet Healthcare operates globally and provides services such as process development, production capabilities, global regulatory support, and collaboration for the development and manufacturing of advanced pharmaceutical intermediates and API.