Blue Jet Healthcare Limited plans to launch an initial public offering (IPO) with subscriptions commencing on October 25, 2023. The company has shown solid revenue and profit growth in recent years. This article provides comprehensive details about Blue Jet Healthcare IPO, including important dates, size, price range, positive factors, risk factors, and a thorough review and analysis.
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Blue Jet Healthcare IPO – Key details
| IPO start date | October 25, 2023 |
| IPO deadline | October 27, 2023 |
| IPO listing date | November 6, 2023 |
| Type of problem | Book Built Issue IPO |
| face value | 2 rupees per share |
| IPO price range | 329 rupees to 346 rupees per share |
| lot size | 43 stocks |
| Exhibition location | BSE and NSE |
| Issue size | Rs. 840.27 billion |
Blue Jet Healthcare IPO Date and Schedule
| IPO start date | October 25, 2023 |
| The IPO will close in | October 27, 2023 |
| Basis for allocation | November 1, 2023 |
| Initiate refund | November 1, 2023 |
| Credit of shares to Demat. | November 3, 2023 |
| Listing date | November 6, 2023 |
| Deadline time for UPI obligation confirmation | October 27, 2023 – 5:00 p.m. |
About Bluejet Healthcare Limited
Established in 1968, Blue Jet Healthcare is a prominent pharmaceutical and healthcare ingredients company based in India. The company was initially known as the first manufacturer of saccharin and its salts, as well as artificial sweeteners. Over the years, the company has diversified its products to include contrast agent intermediates used in medical imaging such as CT scans and MRI. Blue Jet Healthcare primarily operates in three product categories: Contrast Media Intermediates, High Intensity Sweeteners, Pharmaceutical Intermediates and Active Pharmaceutical Ingredients. The company is known worldwide for its science-driven approach and offers a wide range of services including process development, manufacturing capacity, global regulatory support, and collaboration for the development and manufacturing of advanced pharmaceutical intermediates and active pharmaceutical ingredients. It offers.
Financial Insights into Blue Jet Healthcare
| Fiscal year end/period end (amount in billions) | ||||
| Period ends | March 31, 2021 | March 31, 22 | March 31, 23 | June 30, 2023 |
|---|---|---|---|---|
| assets | 536.27 | 713.38 | 862.07 | 903.80 |
| revenue | 507.81 | 702.88 | 744.94 | 184.60 |
| Profit after tax | 135.79 | 181.59 | 160.03 | 44.12 |
| net worth | 339.82 | 521.54 | 681.49 | 725.68 |
Purpose of IPO
Blue Jet Healthcare’s IPO size is Rs 840.27 crore, with the entire issue at offer price (OFS). Under OFS, the proceeds are paid to the selling shareholder and the company does not benefit directly.
Blue Jet Healthcare IPO valuation
- The IPO price band has been set at Rs 329 to Rs 346 per share.
- Based on last year’s FY23 EPS of Rs 9.23, the P/E ratio is 37x.
- Using the last three years’ weighted EPS of Rs 9.44, the P/E ratio is 37x.
- Annualized EPS for the June 2023 quarter yields a P/E ratio of 34x.
- Comparisons are difficult since there are no publicly traded companies with similar businesses, but a P/E ratio of 34x to 37x is generally considered to be a good value for the stock.
Blue Jet Healthcare IPO GMP
There are currently no active trades in the offline market.
Positive aspects of Blue Jet Healthcare IPO
Investors should also consider positive aspects such as:
- The company is one of India’s largest manufacturers of contrast media intermediates.
- We operate in niche categories with high barriers to entry and maintain long-term relationships with multinational customers.
- The company boasts strong product development and process optimization capabilities with a focus on sustainability.
- The company has historically shown solid revenue and profit growth.
Blue Jet Healthcare IPO Risk Factors
Investors should be aware of the following risk factors:
- Proceeds from the IPO will go to the selling shareholders, but the company will not benefit directly.
- The company relies on a limited number of key customers, and the loss of one or more such customers could impact its business.
- We rely on regulated markets in Europe and the United States for a significant portion of our revenue.
- If we are unable to commercialize new products in a timely manner, our business and financial condition may be adversely affected.
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Blue Jet Healthcare IPO Review – Should you invest or avoid?
In conclusion, investing in IPOs has both benefits and risks.
On the positive side, the company is India’s largest manufacturer of contrast agent intermediates, operates in a niche space with high barriers to entry, and has shown strong revenue and profit growth.
On the downside, IPO proceeds benefit selling shareholders, and the company faces dependence on a limited number of customers, primarily in regulated markets. Additionally, the IPO is considered fully priced.
Investors are advised to review the following: Blue Jet Healthcare IPO RHP To fully understand all risk factors before considering an investment.
Suresh KP is the founder of Myinvestmentideas. He is a NISM Certified Investment Advisor and he is a NISM Certified Research Analyst. I have been analyzing financial markets for the past 20 years. He can be reached at suresh@myinvestmentideas.com.
