Blue Jet Healthcare IPO Commences Trading with GMP Soaring by Over 18% - Is Subscribing to the Offering a Wise Choice?

Blue Jet Healthcare IPO Opens for Subscription

Blue Jet Healthcare's initial public offering (IPO) is now open for public subscription, with a closing date set for Friday, October 27, 2023. The offering includes a price range of Rs 329-346 per equity share, with a face value of Rs 2 each. At the upper end of this price range, the company's promoters and shareholders aim to raise an impressive Rs 840.27 crore from the IPO.

Growing Market Premium (GMP)

In anticipation of the IPO, the Grey Market Premium (GMP) for Blue Jet Healthcare shares has witnessed a remarkable surge, reaching 18.21%. This boost in GMP reflects the investor enthusiasm surrounding the offering.

Anchor Investor Bidding Success

The bidding phase for anchor investors, which concluded on Monday, proved to be fruitful, with the company accumulating Rs 252.08 crore in investments.

IPO Structure

The Blue Jet Healthcare IPO primarily consists of an offer-for-sale (OFS), involving the divestment of 24,285,160 shares at Rs 2 each, collectively amounting to Rs 840.27 crore. For potential investors, the minimum bidding requirement starts at 43 equity shares, with subsequent bids allowed in multiples of 43 equity shares each. Retail investors are expected to invest a minimum of Rs 14,878.

It's noteworthy that the proceeds from the IPO will be directed solely to the Selling Shareholders, in proportion to the Offered Shares sold by the respective Selling Shareholders.

Blue Jet Healthcare: A Specialized Player

Blue Jet Healthcare specializes in pharmaceutical and healthcare ingredients and intermediates, offering a range of niche products tailored for innovator pharmaceutical companies and multinational generic pharmaceutical companies. The company has established a contract development and manufacturing organization (CDMO) business model, bolstered by specialized chemistry capabilities in contrast media intermediates and high-intensity sweeteners, thanks to strategic investments in R&D and manufacturing infrastructure. This approach allows Blue Jet Healthcare to manufacture various products in-house, including key starting intermediates and advanced intermediates, ensuring control over production processes for consistent quality and cost-efficiency.

Analyst Recommendations

Considering the dynamics of the Blue Jet Healthcare IPO, various analysts and brokerage firms have offered their perspectives:

Choice Broking: Recommends subscribing, citing the company's robust growth and advantageous valuation.

Geojit: Suggests subscribing on a medium- to long-term basis due to the company's promising prospects, strong return ratios, expansion plans, and favorable industry outlook.

Mehta Equities: Recommends subscribing with a risk perspective, anticipating potential listing gains, despite the IPO being fully priced.

Stoxbox: Recommends subscribing, emphasizing the company's financial performance, growth prospects, and reasonable valuation.

Please note that these recommendations are provided by research analysts and brokerage firms. Investors should consult their financial advisors before making investment decisions as capital market investments are subject to regulations.