Blue Jet Healthcare IPO: Should you subscribe? Here’s what Anil Singhvi recommends

Blue Jet Healthcare IPO: The initial public offer (IPO) of Blue Jet Healthcare opened for subscription on Wednesday, October 25, with a price band of Rs 329 to Rs 346 per share. The IPO of the pharmaceutical company will be opened for subscription for three trading days, i.e., until October 27 (from 10 am to 5 pm). The public issue is entirely an offer for sale of 2.43 crore shares.

Blue Jet Healthcare IPO subscription status

On Thursday (Day 2), Blue Jet Healthcare IPO's share sale received bids for 1,51,94,179 crore shares against 1,69,99,612 shares on offer. Overall, the public issue has been subscribed 89 per cent so far on Day 2 of the bidding process.

Blue Jet Healthcare IPO review: Should you apply? Here’s what Anil Singhvi recommends

#IPOAlert | Blue Jet Healthcare का IPO : इश्यू का दूसरा दिन, अबतक करीब 70% भरा

रिटेल हिस्सा 78% और NII का हिस्सा 1.4x भरा

प्राइस बैंड ₹329-346/ शेयर

देखिए @AnilSinghvi_ की राय https://t.co/1HhsMb80N7#IPOToInvest #BlueJetHealthcare pic.twitter.com/XEjNOW6Qjw

— Zee Business (@ZeeBusiness) October 26, 2023

Here are some important things to know about the Blue Jet Healthcare IPO:

Blue Jet Healthcare IPO allotment date

The basis of the allotment of shares under the IPO of Blue Jet Healthcare is set to be finalised on November 1. Successful bidders will get shares credited into their demat accounts on November 3, whereas other participants will have refunds initiated on November 1.

Blue Jet Healthcare IPO listing date

Blue Jet Healthcare's stock is likely to be listed in the secondary market on November 6. The stock will be traded on the bourses- BSE and NSE.
 
Blue Jet Healthcare IPO: Book running lead managers:

Kotak Mahindra Capital Company Limited, ICICI Securities Limited, and J.P. Morgan India Private Limited are the book running lead managers of the IPO, while Link Intime India Private Ltd is the registrar for the public issue.

Blue Jet Healthcare apply or not? 

Rajan Shinde, Research Analyst at Mehta Equities, said, “The IPO offers an opportunity to invest in a specialty pharmaceutical company. 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.

"The issue, priced at an upper band of Rs 346, with a P/E of 34x on a consolidated basis, appears to be fully priced considering the growth," he added.

"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,” he further said.

What does Blue Jet Healthcare do?

Blue Jet Healthcare was incorporated in 1968 and is a pharmaceutical and healthcare ingredient firm and an intermediate company. It was the first manufacturer of saccharin and its salts (artificial sweeteners) in India and later expanded into contrast media intermediates, which are used in CT scans and MRIs. Blue Jet Healthcare mainly deals in three product categories: (i) contrast media intermediates, (ii) high-intensity sweeteners, and (iii) pharma intermediates and active pharmaceutical ingredients.

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