Blue Jet Healthcare IPO, there was a strong show of interest from investors, with the issue witnessing a subscription rate of 0.69 times. Notably, retail investors showed substantial enthusiasm by subscribing to the retail portion at 0.78 times the allocated shares.”
Blue Jet Healthcare IPO Witnesses Strong Response from Investors on Day 1; Retail and HNIs Lead the Way”
Investors responded favorably to Blue Jet Healthcare’s initial public offering (IPO) on its first day of subscription, with both retail and high-net-worth individual (HNI) participants. On Wednesday, October 25th, subscriptions for the IPO became available.
Pharmaceutical company Blue Jet Healthcare IPO is offering its shares at ₹329 to ₹346 per share in a lot size of 43 shares. The company will not receive any funds from the IPO, which aims to raise up to ₹840.27 crores. The IPO is solely an offer for sale (OFS) by its promoters.
By 1:45 PM on Wednesday, October 25, investors placed bids for 63,50,627 equity shares, or 37% of the 1,69,99,612 equity shares available for subscription. Non-institutional investors (NIIs) displayed a 60% subscription rate in their allocation, whereas retail investors held 49% of the subscription quota. The quota of qualified institutional bidders (QIBs) is still unfulfilled because they have not yet demonstrated any discernible interest.
Global pharmaceutical company Blue Jet Healthcare also functions as a middleman and manufacturer of healthcare components. The company was founded in India to produce saccharin and sodium saccharin, but it has since moved into the production of contrast media intermediates, which are used in MRIs and CT scans.
The majority of brokerage firms monitoring this matter have rated it favorably. Its debt-free status, potential for growth, distinctive business plan, and sound financial standing have impressed them. But as of yet, the company doesn’t have any comparable peers.
After the issuance of equity shares, the company’s market capitalization is 6,002 crores, or 34 times its price to earnings (P/E) and 27 times its price to earnings per share (EPS) at the upper price band. It is advised to think about giving the IPO a “subscribe” rating because it is thought that the company is fairly valued at this price.
The registrar for the IPO is Link Intime India, and the book-running lead managers are ICICI Securities, JP Morgan India, and Kotak Mahindra Capital Company. The BSE and NSE will list the company’s shares.
On Monday, Blue Jet Healthcare raised ₹252.08 crores by issuing 72,85,548 shares at a price of ₹346 a share to anchor investors.
With specialized chemical knowledge, Blue Jet Healthcare is a major player in the market for high-intensity sweeteners and contrast media intermediates. Long-term connections with clients from abroad and high entry barriers are advantageous to the business. Despite a drop in profitability, the company has consistently grown financially in the fiscal year 2023, according to Swastika Investmart.
The company must manage risks associated with quality control and market regulations given its performance and global presence. Taking into account all the variables, we recommend a “subscribe” rating for this IPO because the current 37.48 times P/E valuation appears justified.
Disclaimer: Business Today does not offer investment advice; the news it covers about the stock market is provided solely for informational purposes. Before making any investing decisions, readers are urged to consult with a licensed financial advisor.
