Blue Jet Healthcare IPO Analysis @ Chanakyanipothi.com,
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Bluejet Healthcare IPO Post Listing Review:
On 1 November 2023, the shares are listed at Rs. 380 (compared to the issue price of Rs. 346) marginally higher than the grey market expectations.
Blue Jet Healthcare IPO Grey market Updates
Premium: Rs.22
Kostak/Application Rs. 400
Retail subject to Rs. 350
Rs 10 L application Rs. 4000
Subject to Rs. 9800/ No trades
Blue Jet Healthcare IPO to the point Guidance
1.The company is a specialty pharmaceutical and healthcare ingredient and intermediate manufacturer.
2. IPO size of Rs. 588.18 Cr net of Anchor portion is not large and enough oversubscription is possible.
3. Undertone of the market is weak due to Isarael-Hamas conflicts.
4. Grey Market premium shows downward trend, since the opening of the IPO.
5. Valuation not so high.
6. IPO not so attractive.
Blue Jet Healthcare IPO Subscription
On 27 October 2023 @ 5.00 (Day 3) (Closed)
Review: flow of subscription very weak in 2 days
QIB: 48,57,032 Shares 13.72 T
NII(10L+): 24,28,516 Shares 9.44 T
NII (<10L) 12,14,258 Shares 15.65 T
NII (Total) 36,42,774 Shares 13.58 T
RII: 84,99,806 Shares 2.22 T
Total: 169,99,612 Shares 7.94 T
Blue Jet Healthcare IPO Promoters
AKSHAY BANSARILAL ARORA, SHIVEN AKSHAY ARORA AND ARCHANA AKSHAY ARORA
Elaborate Company details of Blue Jet Healthcare
Blue Jet Healthcare is a specialty pharmaceutical and healthcare ingredient and intermediate company, offering niche products targeted toward innovator pharmaceutical companies and multi-national generic pharmaceutical companies. Since its incorporation in 1968, it has established a contract development and manufacturing organization business model with specialized chemistry capabilities in contrast media intermediates and high intensity sweeteners, on the back of strategic and early investments in research and development and manufacturing infrastructure. It has competencies and manufacturing capabilities in contrast media intermediates and high-intensity sweeteners, including saccharin and its salts. it manufactures a range of products in-house, including the key starting intermediate and advanced intermediates, which allows it to control its production process for consistent quality and cost effectiveness.
In the past three Financial Years, it invoiced a total of more than 350 customers in 35 countries.
The operations are primarily organized in three product categories: (i) contrast media intermediates, (ii) high intensity sweeteners, and (iii) pharma intermediates and active pharmaceutical ingredients (“APIs”).
Contrast media are agents used in medical imaging to enhance the visibility of body tissues under X-rays, computed tomography (“CT”), magnetic resonance imaging (“MRI”) or ultrasound. The global contrast media formulation market had a market size of US$6.7 billion in terms of moving annual turnover2425 for March 2022. The market is expected to grow at a CAGR of 8-10% between the Financial Years 2022 and 2025, with growth expected to be primarily led by volume.
Its high-intensity sweetener business involves development, manufacture and marketing of saccharin and its salts, which is backward integrated with the aim to ensure environmental sustainability with zero by-products and cost-effective production processes. The global high-intensity sweetener market was estimated to be between US$2.3 billion to US$2.4 billion in size, as of the calendar year 2021, comprising products such as sucralose, aspartame, saccharin and stevia and neotame.
Qualitative factors are:
• Large manufacturer of contrast media intermediates in India
• Presence in niche categories with high barriers to entry
• Long-standing relationships and multi-year contracts with multi-national customers
• Strong product development and process optimization capabilities with a focus on sustainability.
For more information, click www.bluejethealthcare.com
Objects of the IPO
The Company will not directly receive any proceeds from the Offer and all the Offer Proceeds will be received by the Selling Shareholders.
Blue Jet Healthcare IPO Details | |
IPO opens on | 25 October ,2023 |
IPO closes on | 27 October ,2023 |
Issue Type | Book Built Issue IPO |
Issue Size | 24,285,160 Sh /Rs 840.27 Cr |
* Fresh Issue | ? Sh /Rs – Cr |
* Offer for Sale | 24,285,260 Shares /Rs 840.27 Cr |
Face Value per share: | Rs. 2 |
Price Band | Rs. 329-346 |
Retail Discount | Rs 0 per share |
Employee discount | Rs. 0 per share |
Retail Lot Size | 43 Shares |
Listing will at | BSE, NSE |
Shares offered to | Shares | Rs. in Cr |
QIB (50 %) | 12142580 | 420.14 |
NII (15 %) | 3642774 | 126.04 |
RII (35 %) | 8499806 | 294.09 |
Employees | – | – |
Total Shares | 24285160 | 840.27 |
Retail portion will be oversubscribed by | 197670 Forms. | |
How much Shares to Apply? | Net of RII discount | |
Min Retail Application | 43 Sh | Rs. 14878 |
Max Retail Application | 559 Sh | Rs. 193414 |
Small HNI (Min) application | 602 Sh | Rs. 208292 |
Small HNI (Max) application | 2881 Sh | Rs. 996826 |
Big HNI Application | 2994 Sh | Rs. 1011704 |
Blue Jet Healthcare IPO Tentative timetable | |
IPO opens on | 25 October 2023 |
IPO Closes on | 27 October 2023 |
IPO Allotment on | 1 November 2023 |
Unblocking of ASBA | 2 November 2023 |
Credit of Shares | 3 November 2023 |
Listing on | 6 November 2023 |
Registered Office of Blue Jet Healthcare | |
1924A/196, Banashankari Badavane, Near NH-4 Bypass, Davangere – 577 005, Karnataka, India | |
Lead Managers Kotak Securities, ICICI Securities, J.P. Morgan |
|
Registrar to IPO | |
Link Intime India Pvt ltd |
Blue Jet Healthcare IPO Financial & Analytical Ratios | ||||
Year | Total Income | Net Profit | EPS | RoE |
Rs. in Cr | Rs.in Cr | Rs. | % | |
2020-21 | 508 | 136 | 7.98 | 39.96 |
2021-22 | 703 | 182 | 10.47 | 34.82 |
2022-23 | 745 | 160 | 9.23 | 23.48 |
Book Value of the Share on | 31.03.2023 | Rs.39.29 | ||
Book Value of the Share | after the IPO | Rs.41.83 | ||
Offer Price at Cap | Rs.346 |
Ratio Analysis | |
Price /last EPS | 37.49 |
Price/Book Value Ratio | 8.81 |
Price/BV after IPO | 8.27 |
Blue Jet Healthcare IPO Peer Comparison
There are no listed companies in India that engage in a business similar to that of this Company. Accordingly, it is not possible to provide an industry comparison in relation to this Company.
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