Blue Jet Healthcare Limited is set to launch its Initial Public Offering (IPO), with subscriptions opening on October 25, 2023. The company has shown robust revenue and margin growth in recent years. In this article, we will provide comprehensive details about the Blue Jet Healthcare IPO, including key dates, size, price band, positive factors, risk factors, and a thorough review and analysis.
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Blue Jet Healthcare IPO – Key Details
| IPO Opening Date | 25-Oct-23 |
| IPO Closing Date | 27-Oct-23 |
| IPO Listing Date | 06-Nov-23 |
| Issue Type | Book Built Issue IPO |
| Face Value | Rs 2 per equity share |
| IPO Price band | Rs 329 to Rs 346 per equity share |
| Lot Size | 43 Shares |
| Listing at | BSE and NSE |
| Issue Size | Rs. 840.27 Crores |
Blue Jet Healthcare IPO Dates and Timetable
| IPO Opens on | 25-Oct-23 |
| IPO Closes on | 27-Oct-23 |
| Basis of Allotment | 01-Nov-23 |
| Initiation of Refunds | 01-Nov-23 |
| Credit of Shares to Demat | 03-Nov-23 |
| Listing Date | 06-Nov-23 |
| Cut-off time for UPI mandate confirmation | 27-Oct-23 – 5 pm |
About Blue Jet Healthcare Limited
Established in 1968, Blue Jet Healthcare is a prominent pharmaceutical and healthcare ingredient company based in India. It initially gained recognition as the first manufacturer of saccharin and its salts, artificial sweeteners. Over the years, the company diversified its offerings to include contrast media intermediates used in medical imaging procedures such as CT scans and MRIs. Blue Jet Healthcare primarily operates in three product categories: contrast media intermediates, high-intensity sweeteners, and pharma intermediates and active pharmaceutical ingredients. The company is globally renowned for its science-led approach and offers a wide range of services, including process development, production capabilities, global regulatory support, and collaboration for the development and manufacturing of advanced pharmaceutical intermediates and active pharmaceutical ingredients.
Financial Insights into Blue Jet Healthcare
| Financial Year ending / Period ending (Amt in Crores) | ||||
| Period Ended | 31-Mar-21 | 31-Mar-22 | 31-Mar-23 | 30-Jun-23 |
|---|---|---|---|---|
| Assets | 536.27 | 713.38 | 862.07 | 903.80 |
| Revenue | 507.81 | 702.88 | 744.94 | 184.60 |
| Profit After Tax | 135.79 | 181.59 | 160.03 | 44.12 |
| Net Worth | 339.82 | 521.54 | 681.49 | 725.68 |
IPO Objectives
The Blue Jet Healthcare IPO is sized at Rs 840.27 Crores, and the entire issue is an Offer for Sale (OFS). Under OFS, the proceeds will go to selling shareholders, and the company will not directly benefit.
Valuation of Blue Jet Healthcare IPO
- The IPO price band is set at Rs 329 to 346 per share.
- Based on last year’s FY23 EPS of Rs 9.23, the P/E ratio is 37x.
- Using the last three years’ weighted EPS of Rs 9.44, the P/E ratio is 37x.
- Considering the Jun-23 quarter EPS annualized, the P/E ratio is 34x.
- With no listed peers in similar business, it’s challenging to compare, but a P/E ratio of 34x to 37x is typically considered fully priced.
Blue Jet Healthcare IPO GMP
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Positive Aspects of Blue Jet Healthcare IPO
Investors should also consider these positive aspects:
- The company is one of the largest manufacturers of contrast media intermediates in India.
- It operates in niche categories with high entry barriers and maintains long-standing relationships with multinational customers.
- The company boasts strong product development and process optimization capabilities with a focus on sustainability.
- It has shown robust growth in revenues and margins in the past.
Risk Factors in Blue Jet Healthcare IPO
Investors should be aware of these risk factors:
- The IPO proceeds go to selling shareholders, with no direct benefit to the company.
- The company is reliant on a limited number of key customers, and the loss of one or more such customers could impact its business.
- It depends on regulated markets in Europe and the United States for a significant portion of its revenue.
- Failure to commercialize new products in a timely manner could adversely affect its business and financial condition.
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Blue Jet Healthcare IPO Review – Should you invest or avoid?
In conclusion, investing in the IPO has both merits and risks.
On the positive side, the company is the largest manufacturer of contrast media intermediates in India, operating in a niche category with high entry barriers and demonstrating strong revenue and margin growth.
On the negative side, the IPO proceeds benefit selling shareholders, and the company faces dependence on a limited number of customers, primarily in regulated markets. Furthermore, the IPO is considered fully priced.
Investors are encouraged to review the Blue Jet Healthcare IPO RHP for a complete understanding of all risk factors before considering an investment.
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Sir I am reading all your blog from 2015 onwards.. I have recommendation that pls provide your view regarding IPO which was you used to do previously
Akhil, All these IPO reviews has my view in the last 2-3 paragraphs.
dear Suresh, an off-topic matter for your advise pls ! I dabble in IPOs through ASBA route as RII !
My doubt is whether applying for higher multiples of minimum applicable qty increase chances of allotment ?
Eg if 25 no of shares is the minimum applicable qty, and if I apply for 50 or 100 instead, would my chances of allotment increase, compared to applying for 25 ?
Thks in anticipation, Tom
Hello tom, IPO allotment process mainly works based on PAN number and not based on how many lots you would apply. If you wish to increase your chances of getting IPO, try applying through various accounts (like from your parents account, spouse account etc.,)