Blue Jet Healthcare IPO dates, price, GMP and more details

Blue Jet Healthcare IPO: The initial public offering (IPO) of Blue Jet Healthcare opens on Wednesday, October 25, and closes on Friday, October 27. The allotment of shares for Blue Jet Healthcare IPO is expected to be finalised on Wednesday, November 1. The tentative listing date of the IPO is Monday, November 6.

Price band, lot and issue size

The price band of Blue Jet Healthcare IPO is set at Rs 329 to Rs 346 per share. The minimum lot size for an application is 43 shares and the minimum amount of investment required by retail investors is Rs 14,878. The minimum lot size for small non-institutional investors (sNII) is 14 lots amounting to Rs 2,08,292, and that for bNII, it is 68 lots amounting to Rs 10,11,704.

The face value of the IPO is Rs 2 per share. The total issue size is 24,285,160 shares (aggregating up to Rs 840.27 crore).

Blue Jet Healthcare IPO reservation

Not more than 50 per cent of the net issue is reserved for qualified institutional buyers (QIBs), up to 35 per cent of the net issue is reserved for retail shareholders and up to 15 per cent of the net issue is reserved for non-institutional (high net worth) investors.

Blue Jet Healthcare IPO GMP

The latest grey market premium of Blue Jet Healthcare IPO is Rs 63, as per Investor Gain. Blue Jet Healthcare IPO's estimated listing price is Rs 409 (cap price + today's GMP). The expected premium per share is 18.21 per cent.

Objects of the issue

The company will not receive any proceeds from the offer and all the offer proceeds will be received by the selling shareholders, in proportion to the offered shares sold by the respective selling shareholders as part of the offer, according to the DRHP filing.

About Blue Jet Healthcare Limited

Blue Jet Healthcare, a pharmaceutical and healthcare ingredient and intermediate company, was incorporated in 1968. Blue Jet Healthcare was the first manufacturer of saccharin and its salts (artificial sweeteners) in India. Later, they expanded into contrast media intermediates, which are used in CT scans and MRIs. The company mainly deals in three product categories:

• Contrast media intermediates.
• High-intensity sweeteners.
• Pharma intermediates and active pharmaceutical ingredients.

“Blue Jet Healthcare IPO offers an opportunity to invest in a specialty pharmaceutical company with a 20-year track record in manufacturing contrast media intermediates and producing niche products, creating high entry barriers for competitors. Blue Jet's established relationships and multi-year contracts with multinational clients not only secure long-term supply agreements but also handle warehousing and logistics.

Although Blue Jet showed substantial growth in FY 2022, growth in FY 2023 was subdued, with a 37 per cent revenue and 34 per cent profit growth in 2022, compared to 5.49 per cent in 2023. The issue, priced at the upper band of Rs 346, with a P/E of 34x on a consolidated basis, appears to be fully priced considering the growth. 

However, Blue Jet's unique niche product segment and lack of immediate peers might attract demand based on a first-mover advantage, potentially leading to significant listing gains. While the 100% offer for sale (OFS) is a concern for new investors, Mehta Equities recommends subscribing to the Blue Jet IPO with a risk perspective, expecting decent listing gains,” said Rajan Shinde, Research Analyst at Mehta Equities Ltd.