Blue Jet Healthcare IPO: Issue opens, check live subscription here

25 Oct 2023 , 12:28 PM

Blue Jet Healthcare’s initial public offering (IPO) is set to hit the market on October 25 with a total size of Rs 840.27 crore. The pricing for this offering falls within the range of Rs 329 to Rs 346 per share. It’s important to note that this IPO is exclusively an offer-for-sale (OFS) of 2.42 crore shares, meaning there will be no infusion of fresh equity into the company. As a result, the proceeds generated from this IPO will be directed to the selling shareholders, and Blue Jet Healthcare itself will not receive any capital from the offering.

The subscription window for the public offer will remain open until October 27, and the stock is anticipated to make its debut on the stock exchanges on November 6. Click here to subscribe the IPO.

In a remarkable start to the subscription process, the IPO received substantial interest, with a 23% subscription rate recorded within the first two hours by 12:20 PM. Notably, the retail portion experienced a subscription rate of 34%, while non-institutional investors’ participation reached 29%. However, qualified institutional buyers (QIBs) have yet to subscribe to the offering.

Blue Jet Healthcare follows a business model centered around contract development and manufacturing organization (CDMO) operations, focusing on three key product categories—contrast media intermediates, high-intensity sweeteners, and pharma intermediates & active pharmaceutical ingredients (APIs).

At the upper end of the price band, which stands at Rs 346 per share, Blue Jet Healthcare’s valuation reflects a price-to-earnings (P/E) ratio of 34x based on the expected annualized earnings per share (EPS) for FY24.