IPO Update: Blue Jet Healthcare Opens Today At Rs 329-346 Per Share

Blue Jet Healthcare's Initial Public Offering (IPO) with a total worth of Rs 840.27 crore is set to begin accepting subscriptions on October 25. Numerous analysts have advised potential investors to consider subscribing to the IPO due to the company's promising business prospects, ambitious greenfield expansion strategies, and favourable industry outlook. The IPO's price range has been established at Rs 329-346 per share.

It's important to note that this offering exclusively comprises a 2.42 crore share offer-for-sale. As there is no new equity component, the proceeds will be directed to the selling shareholders, and the company will not receive any capital from the offering. 

Nevertheless, the primary objective of this IPO is to realize the advantages of listing its shares on stock exchanges. The public offering is scheduled to conclude on October 27, with the shares anticipated to commence trading on November 6.

During the fiscal year 2022-23, the company experienced a 5.5 per cent increase in revenue, reaching Rs 721 crore, although the net profit decreased by 11.87 per cent to Rs 160 crore. In the initial quarter of the fiscal year 2023-24, Blue Jet Healthcare reported a 58.4 per cent surge in profit to Rs 44.1 crore compared to the corresponding period the previous year, with revenue climbing by 24.2 per cent to Rs 179.5 crore.

Blue Jet Healthcare operates within a Contract Development and Manufacturing Organization (CDMO) business model, specializing in three distinct product categories—contrast media intermediates, high-intensity sweeteners, and pharma intermediates and active pharmaceutical ingredients (APIs). 

Presently, the company runs three manufacturing facilities situated in Shahad (Unit I), Ambernath (Unit II), and Mahad (Unit III) in Maharashtra. Notably, Blue Jet Healthcare acquired a leasehold greenfield manufacturing site (Unit IV) in Ambernath in 2021, with plans to construct multiple multi-purpose blocks dedicated to the pharma intermediates and API business.