Blue Jet Healthcare Limited is coming up with an IPO of INR 840.27 crores. The offer consists of a sale of equity shares worth INR 840.27 crores by the existing shareholders. The company will not receive any proceeds from the offer but intends to provide liquidity to the existing shareholders as well as help build the brand image.
Blue Jet Healthcare Ltd IPO – Important Details
| Blue Jet Healthcare Limited IPO Date | October 25, 2023 to October 27, 2023 |
| Blue Jet Healthcare Limited IPO Listing Date | November 1, 2023 |
| Blue Jet Healthcare Limited IPO Price | INR 329 to 346 per share |
| Blue Jet Healthcare Limited IPO Lot Size | 43 Shares |
| Blue Jet Healthcare Limited IPO Total Issue Size | INR 540.27crores |
| Blue Jet Healthcare Limited IPO Basis of Allotment | November 1, 2023 |
| Blue Jet Healthcare Limited IPO Initiation of Refunds | November 1, 2023 |
| Blue Jet Healthcare Limited IPO Credit of Shares to Demat | November 3, 2023 |
| Blue Jet Healthcare Limited IPO Issue Type | Book Built Issue IPO |
| Blue Jet Healthcare Limited IPO Listing At | BSE, NSE |
Blue Jet Healthcare Limited IPO – Company Profile
The company is a specialty pharmaceutical and healthcare ingredients and intermediates company, offering niche products targeted toward innovator pharmaceutical companies and multinational generic pharmaceutical companies.
Since its incorporation in 1968, the company has established a contract development and manufacturing organization (“CDMO”) business model with specialized chemistry capabilities in contrast to media intermediates and high-intensity sweeteners, on the back of strategic and early investments in research and development (“R&D”) and manufacturing infrastructure.
The operations are primarily organized into three product categories: (i) contrast media intermediates, (ii) high-intensity sweeteners, and (iii) pharma intermediates and active pharmaceutical ingredients (“APIs”).
The company currently operates three manufacturing facilities, which are located in Shahad (Unit I), Ambernath (Unit II), and Mahad (Unit III) in the state of Maharashtra.
Blue Jet Healthcare Limited IPO – Fundamental Analysis
Blue Jet Healthcare’s IPO displays consistent revenue growth, sound financial stability, and positive earnings. However, the declining RoNW, ROE, and net profit margin in 2023 raise concerns. Prospective investors should evaluate these factors along with market conditions before investing.
Revenue Growth:
Blue Jet Healthcare has demonstrated consistent revenue growth, increasing from ₹4,989.32 million in 2021 to ₹7,209.82 million in 2023.
Profitability:
While profitability improved from 2021 to 2022, there was a slight decline in 2023. The net profit in 2023 is ₹1,599.44 million.
Return on Net Worth (RoNW):
RoNW has gradually declined from 39.96% in 2021 to 23.48% in 2023, indicating a reduction in the utilization of net worth.
Earnings Per Share (EPS):
Diluted EPS has shown growth, reaching ₹9.23 in 2023, indicating a positive trend in earnings per share.
Financial Stability:
The debt-equity ratio increased slightly to 0.16 in 2023, indicating a small level of debt. The current ratio improved from 2.39 in 2021 to 3.82 in 2023, suggesting strong short-term liquidity.
Return on Equity (ROE) and Net Profit Margin:
ROE decreased from 50.18% to 26.60% over the years. Similarly, the net profit margin declined from 27.48% to 22.27%.
Blue Jet Healthcare Limited IPO Financial Information
| Particular | As at 31 March 2021(Consolidated) | As at 31 March 2022(Standalone) | As at 31 March 2023(Standalone) |
| Revenue (₹ in Million) | 4,989.32 | 6,834.69 | 7,209.82 |
| Equity (₹ in Million) | 3,398.18 | 5,215.42 | 6,814.86 |
| Expenses (₹ in Million) | 3,178.49 | 4,596.51 | 5,283.27 |
| Profit and Loss After Tax (₹ in Million) | 1,357.75 | 1,817.24 | 1,599.44 |
| RoNW (%) | 39.96% | 34.82% | 23.48% |
| Diluted EPS only (₹) | 7.98 | 10.47 | 9.23 |
| NAV per Equity Share (₹) | 19.59 | 30.07 | 39.29 |
| Total Assets (in million) | 5,362.70 | 7,133.75 | 8,620.65 |
| Total Liabilities (in million) | 1,964.54 | 1,1918.33 | 1,805.79 |
| Debt-Equity Ratio | 0.00 | 0.00 | 0.16 |
| Current Ratio | 2.39 | 3.14 | 3.82 |
| Return on equity ratio | 50.18% | 42.16% | 26.60% |
| Net profit ratio | 27.48% | 26.83% | 22.27% |
Blue Jet Healthcare Ltd IPO Peer Comparison
There are no listed companies in India that engage in a business similar to that of the company. Accordingly, it is not possible to provide a comparison of the KPIs of Blue Jet Healthcare and its listed peers.
Blue Jet Healthcare Limited IPO Objective
The IPO offer consists of an offer for sale, and the company will not receive any funds from the proceeds of the offer. The company aims to achieve the benefits of listing to enhance the visibility and brand image.
Blue Jet Healthcare Limited IPO Risks And Challenges
Blue Jet Healthcare Limited IPO faces substantial risks, including heavy reliance on its top 10 customers for 80% of revenue, potential product launch delays, and dependence on a few suppliers in China, Norway, and India, threatening business operations, financial stability, and growth prospects.
- Almost 80% of the revenue of the company is dependent on the top 10 customers. The loss of one or more such customers, the deterioration of their financial condition or prospects, or a reduction in their demand for the products could adversely affect the business, results of operations, financial condition, and cash flows.
- If the company cannot commercialize new products in a timely manner, the business, financial condition, and prospects will be adversely affected.
- The company depends upon a limited number of raw material suppliers, and the three largest suppliers are located in China, Norway, and India. Any delay, interruption or reduction in the supply or transportation of raw materials or an increase in the costs of such raw materials to manufacture our products may adversely affect the business, results of operations, financial condition, and cash flows.
Blue Jet Healthcare Limited IPO – Industry & Market Potential
The global contrast media formulations industry is highly concentrated, with four players garnering ~75% of global sales of contrast media formulations. Contrast media intermediate players are primarily based in India and China. Even before COVID-19, formulation companies were looking to de-risk their dependence on a single country. COVID-19 has further accentuated this need, and formulation companies are increasingly looking to source intermediates from a diverse set of countries (including India).
Global demand for saccharine is estimated to be around 37,000-40,000 MT per annum. Saccharine manufacturers are primarily based in Asia, with the majority of production capacity concentrated in China. The market is reasonably concentrated, with the top five players (arranged alphabetically, not in the order of their market share: Colgate, GSK, Johnson & Johnson, Proctor & Gamble, and Unilever) commanding nearly 60% of the market.
Growth in the global pharmaceutical market is a function of (a) the launch of novel therapies, including biologics, (b) the expansion of existing therapies into newer geographies and adjacent indications (c) growing demand for generic medicines, and (d) initiatives taken by pharmaceutical companies and governments globally for accelerated access to drugs.
Blue Jet Healthcare IPO – Type of Offer
The offer consists of a sale of equity shares worth INR 840.27 crores by the existing shareholders. The company’s promoters, Mr.Akshay Bansarilal Arora and Mr.Shiven Akshay Arora, are selling their shares worth INR 840.27 crores.
Blue Jet Healthcare IPO Offer Size
Blue Jet Healthcare Limited plans to launch an IPO valued at INR 840.27 crores. This offering entails the sale of INR 840.27 crores worth of equity shares by current shareholders. The company won’t directly benefit from this, but it aims to provide liquidity to existing shareholders and enhance its brand image.
Blue Jet Healthcare IPO Allotment Structure
Blue Jet Healthcare Limited’s IPO allocation designates 50% for Qualified Institutional Buyers, 15% for Non-Institutional Investors, and 35% for Retail Individual Investors, adhering to SEBI’s guidelines for a diversified investor base.
- Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
- Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs. 2 lakhs.
- Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs. 2 lakhs.
How to apply for a Blue Jet Healthcare IPO?
To apply for the Blue Jet Healthcare Limited IPO through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for Blue Jet Healthcare Limited’s IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for Blue Jet Healthcare Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Blue Jet Healthcare Limited IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Blue Jet Healthcare Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Blue Jet Healthcare Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Blue Jet Healthcare Limited IPO:
- Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Blue Jet Healthcare Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
- NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Blue Jet Healthcare Ltd IPO Offer Registrar
The registrar for the Blue Jet Healthcare Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai – 400 083, Maharashtra
Phone: 022-4918 6200
Email: [email protected]
Website: www.linkintime.co.in
Blue Jet Healthcare Ltd IPO FAQs
1. What is the allotment date of the Blue Jet Healthcare Limited IPO?
The allotment date of the company’s shares is November 1, 2023.
2. What is the price band of the Blue Jet Healthcare Limited IPO?
The price band is INR 329 to 346 per share.
3. What is the size of the Blue Jet Healthcare Limited IPO?
Blue Jet Healthcare Limited is launching an INR 840.27 crore IPO, comprising the sale of equity shares worth the same amount by current shareholders. The company won’t directly profit from this, but it aims to offer liquidity to existing shareholders and enhance its brand reputation.
4. What is the listing date of the Blue Jet Healthcare Limited IPO?
The listing date is November 1, 2023.
