Blue Jet Healthcare Ltd. opened its Initial Public Offering (IPO) for public subscription today, Wednesday. The IPO, which is an Offer for Sale (OFS) by promoters Akshay Bansarilal Arora and Shiven Akshay Arora, will remain open until October 27, 2023. The shares are priced between Rs 329–346 per equity share, potentially raising Rs 840 crore at the higher price band.
The IPO includes an OFS of over 24 million shares. However, the funds raised will not directly financially benefit Blue Jet Healthcare, as they will go to shareholders. Post-IPO, P&PG entities will retain an 86% stake in the company, increasing public shareholding from zero to 14%.
Prior to the public issue, Blue Jet Healthcare's Grey Market Premium (GMP) rose to 18.21%, and the company collected Rs 252.08 crore from anchor investors including ICICI Prudential Funds, HDFC Mutual Fund, Nippon Life India, Government Pension Fund Global, Aditya Birla Sun Life Insurance, HSBC Global Investment Funds, BNP Paribas (OTC:BNPQY) and Edelweiss Trusteeship.
Blue Jet Healthcare operates on a Contract Development and Manufacturing Organisation (CDMO) business model. The company specializes in high-intensity sweeteners and contrast media intermediates and has established multi-year contracts with multinational clients. Strategic investments in R&D and manufacturing infrastructure allow the firm to control production processes for consistent quality and cost-effectiveness.
Brokerage firms have recommended subscribing to the Blue Jet Healthcare IPO due to its strong growth prospects. Choice Broking highlighted future benefits from sustained product demand and stabilizing raw material prices. Geojit pointed to healthy return ratios, forward integration, expansion plans, and a promising industry outlook. Mehta Equities recommended subscribing with a risk perspective, expecting decent listing gains despite concerns about the 100% OFS.
The IPO is managed by Kotak Mahindra Capital Company Limited, ICICI Securities Limited, and J.P. Morgan India Private Limited with Link Intime India Private Ltd as the registrar.
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