Blue Jet Healthcare IPO to Open on October 25, Price Band Set at Rs 329-346

19 Oct 2023 , 01:49 PM

Blue Jet Healthcare, a specialty pharmaceutical and healthcare ingredients developer, is planning to launch its initial public offering (IPO) with the following details:

• Price Band: The price band for the IPO has been set at Rs 329 to Rs 346 per share.
• Subscription Dates: The IPO subscription will open for investors on October 25 and close on October 27, 2023.
• Anchor Book Bidding: The anchor book bidding will take place for a day on October 23, 2023.
• Basis of Allotment: The basis of allotment will be finalized on Wednesday, November 1, 2023.
• Initiation of Refunds: Refunds, if applicable, will also commence on Wednesday, November 1, 2023.
• Credit of Shares to Demat: Shares are expected to be credited to investors’ Demat accounts by Friday, November 3, 2023.
• Listing Date: The company’s shares are scheduled to be listed on the stock exchange on Monday, November 6, 2023.

It’s important to note that the Blue Jet Healthcare IPO consists only of an offer-for-sale (OFS) component, with over 2.4 crore equity shares being offered by promoters. There is no fresh issue portion, which means that the entire proceeds from the IPO will go to the selling shareholders, specifically the Arora family, and the company will not raise any capital from the offering.

Investors can bid for a minimum of 43 equity shares and in multiples of 43 shares thereafter. Retail investors will have a minimum application size of Rs 14,878 (for 43 shares) and a maximum investment limit of Rs 1,93,414 (for 559 shares) as they cannot exceed an investment limit of Rs 2 lakh in the IPO.

Blue Jet Healthcare operates in three product categories: contrast media intermediates, high-intensity sweeteners, and pharma intermediates and active pharmaceutical ingredients (APIs). It has specialized chemistry capabilities in contrast media intermediates and high-intensity sweeteners and caters to various customers, including GE Healthcare AS, Guerbet Group, Bracco Imaging SpA, Colgate-Palmolive (India), Unilever, Prinova US LLC, and MMAG Company.

In terms of revenue distribution, the European region contributed the most to its revenue from operations at 74.5% in FY23, followed by India at 14% and the USA at nearly 5%. The company reported a 5.5% YoY growth in revenue from operations in FY23, reaching Rs 721 crore. However, the net profit was down by 11.87% YoY to Rs 160 crore during the last fiscal year. In the quarter ending June FY24, the profit increased by 58.4% over the corresponding period last fiscal, and revenue from operations rose by 24.2% to Rs 179.5 crore in the same period.

The book running lead managers for the IPO are Kotak Mahindra Capital Company, ICICI Securities, and JP Morgan India.