- By Vaamanaa Sethi
- Wed, 25 Oct 2023 12:01 PM (IST)
- Source:JND
BlueJet Healthcare initial public offering (IPO) opened for subscription today, October 25 and the last day to bid is Friday, October 27. The company has fixed its price band at Rs 329 to Rs 346 per equity share and the public issue is proposed for listing on BSE and NSE.
As per reports, 22 investors took part in the anchor book offering, according to the exchange filing of Blue Jet Healthcare Limited. Some of the prominent investors in the list included ICICI Prudential Funds, HDFC Mutual Fund, Nippon Life India, Aditya Birla Sun Life Insurance, Government Pension Fund Global, HSBC Global Investment Funds, Edelweiss Trusteeship, and BNP Paribas.
BlueJet Healthcare IPO GMP Today
The shares of BlueJet Healthcare have already made its grey market debut. As per the market observers, shares of Blue Jet Healthcare are available at a premium of Rs 85 per share in the grey market on Wednesday.
On Tuesday, Blue Jet Healthcare's shares were being traded in the grey market at a premium of Rs 63, as reported by investorgain.com.
Based on the upper end of the IPO price band and the present premium observed in the grey market, the anticipated listing price for Blue Jet Healthcare's shares stands at Rs 409 each, representing an 18.21% increase from the IPO price of Rs 346.
BlueJet Healthcare IPO subscription status
As of 10:36 AM on the first day of bidding, the public issue has achieved a subscription rate of 0.08, while the retail portion has been subscribed 0.12 times. Additionally, the NII (Non-Institutional Investors) portion of the book build issue has garnered a subscription rate of 0.09.
Analysts Review
“BJHL is mainly a Contract Development and Manufacturing Organization (CDMO), deriving around 75% of the business from CDMO operations. Its product profile is niche and over the period of operations, it has developed a long lasting relation with the clients. As a result, today it is able to generate around 70% of the total business from long term contracts with such clients. Over FY20-23, the company has reported a strong growth in the business, however higher raw material costs impacted the profitability. RoE was healthy, despite a 3x rise in net-worth. Going forward, BJHL will benefit from sustained demand of its products and lower/stabilizing raw material prices. It has planned certain brownfield and greenfield expansions, which will increase the installed capacity by around 50% over FY25E. So, Blue Jet Healthcare IPO has strong growth prospects and valuation comfort and one can subscribe to this public issue,” said Choice Broking in its report.
Meanwhile, Reliance Securities has also given ‘Buy’ tag to the BlueJet Healthcare IPO. "BJHL is one of the innovative companies in niche categories with more than two decades of experience and has specialized chemistry capabilities; with dedicated R&D laboratories to offer various products in highly concentrated contrast media formulations. The management is adopting a prudent strategy of diversifying revenues with a major thrust on exports with a high margin product mix going forward. The increased expansion over the next 2 years for envisaged increase in demand and leveraging the customer relationships for pharma intermediates and API categories will boost earnings over the next few years. We recommend a SUBSCRIBE to the issue,” Reliance Securities said.