Blue Jet Healthcare IPO: 9 Important Things You Should Know Before Investing

Get ready for a financial opportunity as Blue Jet Healthcare, a pharmaceutical company based in Maharashtra, prepares to kickstart its Rs 840.27-crore initial public offering (IPO) on October 25. Now, before we start, let's know a little about Blue Jet Healthcare.

About Blue Jet Healthcare

Blue Jet Healthcare operates on a contract development and manufacturing organization (CDMO) business model, with its focus spanning three key product categories: contrast media intermediates, high-intensity sweeteners, and pharma intermediates & active pharmaceutical ingredients (APIs).

Here are 9 critical points to consider before diving into this investment:

1) Important Dates

Mark your calendar! The IPO subscription window opens on October 25 and closes on October 27.

2) Price Range

What's the cost of entry? Blue Jet Healthcare's IPO is priced between Rs 329 and Rs 346 per share.

3) The Offer Details

Blue Jet Healthcare is seeking to raise Rs 840.27 crore through this IPO, but there's a twist—it's entirely an offer-for-sale (OFS) of over 2.4 crore equity shares by the promoters. This IPO doesn't include a fresh issue portion.

In preparation for the main offering, Blue Jet Healthcare has already secured Rs 252.08 crore from 22 anchor investors, including heavyweights like Government Pension Fund Global, ICICI Prudential Mutual Fund, and HDFC Mutual Fund. Anchor investors get early access to the shares before the IPO opens, which helps boost overall investor confidence.

4) What's the Goal?

In this case, there's no fresh issue component involved, so the proceeds from the IPO will solely benefit the selling shareholders. Blue Jet Healthcare itself won't be adding any money to its coffers through this offering.

5) Lot Size

How much can you bid for? The minimum bid starts at 43 equity shares, and you can increase your bid in multiples of 43 shares. For retail investors, this translates to a minimum investment of Rs 14,147, with the bidding amount potentially reaching Rs 14,878 at the upper end.

6) Financial Snapshot

In the fiscal year 2022-23, Blue Jet Healthcare witnessed a 5.5% growth in revenue compared to the previous year, amounting to Rs 721 crore. However, the net profit faced an 11.87% decline, resting at Rs 160 crore. The first quarter of FY24 brought a different story—profits soared by 58.4% to reach Rs 44.1 crore compared to previous year, and revenue jumped by 24.2% to Rs 179.5 crore.

7) The Power Behind the IPO

The IPO is being managed by industry leaders: Kotak Mahindra Capital Company, ICICI Securities, and JP Morgan India are the lead managers, with Link Intime India serving as the registrar.

8) The People Behind Blue Jet Healthcare

The company is driven by its promoters, namely Akshay Bansarilal Arora, Shiven Akshay Arora, and Archana & Akshay Arora.

9) When Will It List?

While the official announcement is yet to come, we anticipate the stock to make its debut on both the NSE & BSE on November 6.

This guide equips you with a comprehensive understanding of the Blue Jet Healthcare IPO, helping you make an informed investment decision.