Blue Jet Healthcare Ltd. has officially initiated its Initial Public Offering (IPO) for public subscription today, on Wednesday. The IPO, structured as an Offer for Sale (OFS) by its promoters, Akshay Bansarilal Arora and Shiven Akshay Arora, will remain open for investors until October 27, 2023. The shares are competitively priced in the range of Rs 329 to Rs 346 per equity share, potentially accumulating a total of Rs 840 crore at the upper end of the price band.
The IPO encompasses an OFS of over 24 million shares. It is important to note that the funds generated from this offering will not directly benefit Blue Jet Healthcare but rather accrue to its existing shareholders. Post-IPO, the P&PG entities will continue to retain an 86% stake in the company, which signifies a substantial increase in public shareholding from nil to 14%.
In anticipation of the public offering, the Grey Market Premium (GMP) for Blue Jet Healthcare rose to an impressive 18.21%. Additionally, the company garnered Rs 252.08 crore from anchor investors, including prominent names such as ICICI Prudential Funds, HDFC Mutual Fund, Nippon Life India, Government Pension Fund Global, Aditya Birla Sun Life Insurance, HSBC Global Investment Funds, BNP Paribas, and Edelweiss Trusteeship.
Blue Jet Healthcare operates on a Contract Development and Manufacturing Organisation (CDMO) business model, with a primary focus on high-intensity sweeteners and contrast media intermediates. The company has successfully secured multi-year contracts with multinational clients, and its strategic investments in research and development, along with cutting-edge manufacturing infrastructure, ensure precise control over production processes, ensuring consistent quality and cost-effectiveness.
Prominent brokerage firms have highly recommended subscribing to the Blue Jet Healthcare IPO, citing its robust growth potential. Choice Broking underscores the future benefits anticipated from sustained product demand and stabilizing raw material prices. Geojit points out the healthy return ratios, forward integration strategies, expansion plans, and an optimistic industry outlook. Mehta Equities, despite concerns about the 100% OFS, recommends subscribing with a risk perspective, expecting substantial listing gains.
The management of this IPO is entrusted to Kotak Mahindra Capital Company Limited, ICICI Securities Limited, and J.P. Morgan India Private Limited, with Link Intime India Private Ltd serving as the registrar.
