Blue Jet Healthcare IPO: Check Issue Size, Date and Price Band | Motilal Oswal

Blue Jet Healthcare IPO: Check Issue Size, Date and Price Band


Ever since the COVID-19 pandemic, investors have taken a lot of interest in the Initial Public Offerings (IPOs) of growing companies. More often than not, they have been rewarded with excellent returns. A pharmaceutical and healthcare ingredients manufacturing company – Blue Jet Healthcare Limited – recently announced its IPO, and will be launching it on 25 October 2023.

This article aims to provide a comprehensive overview of the Blue Jet Healthcare IPO, offering potential investors a clear understanding of what to expect from this public issue, and decide if they should invest in it or not.

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About Blue Jet Healthcare

Incorporated in 1968, Blue Jet Healthcare Limited is a global pharmaceutical and healthcare ingredient manufacturing and intermediary company. The company’s products can be fragmented into three distinct categories – contrast media intermediates, high-intensity sweeteners, and Active Pharmaceutical Ingredients (APIs).

Over the years, the company has established a significant presence in the healthcare industry, ranging across hospitals and clinics to diagnostic centers and telemedicine. Some top clients of the company include GE Healthcare AS, Guerbet Group, Bracco Imaging SpA, Colgate-Palmolive, Unilever India, Prinova US LLC, and MMAG Company.

Strengths of the Company

Below are the key strengths of Blue Jet Healthcare Ltd. as stated in its Draft Red Herring Prospectus (DRHP) filed with the Securities and Exchange Board of India (SEBI):

  • It is India’s largest manufacturer of contrast media intermediaries
  • Largest manufacturer of saccharine sodium in India with 3,000 metric tonnes annual capacity
  • It has more than 24 years of manufacturing experience in its field
  • Operates in an industry with high entry barriers
  • There are no listed companies with similar business as that of the company
  • Established relationships and long-term contracts with major clients across the globe
  • Boasts excellent in-house research and development (R&D) capabilities
  • All three manufacturing facilities have regulatory accreditations

Key Weaknesses Highlighted

Key weaknesses or risks associated with Blue Jet Healthcare Ltd. include:

  • A significant portion of the revenue comes from the top ten clients
  • The company is highly dependent on the European and US markets for its revenues
  • Profits are subjected to fluctuations in currency exchange rates
  • The company has to abide by several government regulations 
  • Disruptions in the supply of raw materials may impact the business

Core Financials of Blue Jet Healthcare Ltd.

Financials of the issuing company play a crucial role for investors to make investing decisions. The table below portrays key financials of Blue Jet Healthcare Ltd. as per its RHP on the SEBI website dated 17 October 2023:

Particulars For Period Ended June 30, 2023 As of and for FY Ended March 31
2023 2022 2021
Share Capital 35 35 35 10
Net Worth 726 681 522 340
Total Borrowings - - - 52
Revenue From Operations 180 721 683 499
EBITDA Adjusted 59 219 249 206
Profit After Tax 44 160 182 136
Earnings Per Share (Diluted) 3 9 10 8
Net Asset Value (In Rs/share) 42 39 30 20
Return on Capital Employed 8% 32% 47% 50%
Return on Equity 6% 27% 42% 50%

*Amount in Crores

As you can conclude from the table above, the company’s net worth has grown considerably from Rs. 340 crores in FY21 to Rs. 681 crores in FY23. However, the profits have been erratic, reflecting the unpredictable nature of the API business.

The ROE and ROCE are highly impressive, justifying the IPO valuation. Factors like zero borrowings and constantly improving revenues make this company an attractive proposition for investors.

Details of the IPO

Blue Jet Healthcare IPO opens for public subscription on Wednesday, 25 October 2023, and closes on Friday, 27 October 2023. The issue will be an entire offer for sale of up to Rs. 840.27 crores. The company has reserved 50% of the issue for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and the remaining 35% for retail investors.

Retail investors can apply for at least 43 shares (and in multiples thereof) in the price band of Rs. 329 to Rs. 346 per share. More details of the IPO are mentioned in the table below:

IPO Date 25 October to 27 October 2023
Listing Date 06-Nov
Face Value Re. 2 per share
Price Band Rs. 329 to Rs. 346
Lot Size 43 shares
Total Issue Size 24,285,160 equity shares (aggregating up to Rs. 840.27 crores)
Offer for Sale 24,285,160 equity shares (aggregating up to Rs. 840.27 crores)
Issue Type Book Built Issue

The final word

Considering the potential in the healthcare industry and the company’s growing prowess, it makes sense to invest in the Blue Jet Healthcare IPO. But you should conduct thorough research, and consider your financial goals and risk tolerance before making investment decisions. Should you need a Demat account to invest in IPOs and stocks, you can open it for free with Motilal Oswal.


Related Articles:  How to Analyse an IPO | What is IPO Grading? | What is Cut Off Price In IPO Application 


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