Blue Jet Healthcare shares settled the listing day with a 19.5 percent gain on November 1, and this was despite correction and volatility in the equity markets. The BSE Sensex was down nearly 300 points during the day.
The stock opened nearly 10 percent higher at Rs 380, backed by decent IPO subscription numbers (7.94 times), and gained major strength in the later part of the session to hit an intraday high of Rs 418 in the last hour of trade.
Finally, the stock closed at Rs 413.4 on the NSE, rising 19.5 percent over the issue price of Rs 346, with a volume of 2.2 crore equity shares, while on the BSE, it ended the session with 14.4 percent gains at Rs 395.85, with a volume of 23.09 lakh shares.
"The company's strong fundamentals and good subscription levels were positive factors for the listing," Shivani Nyati, Head of Wealth at Swastika Investmart said. She advised that investors may hold it by keeping a stop-loss at Rs 340.
"The company has a strong competitive advantage due to its high entry barriers and long-term relationships with multinational customers. Its financial performance is also strong, with consistent revenue and profit growth in recent years," Nyati said.
Also read: Blue Jet Healthcare: Should you buy, hold, or book profit?
Maharashtra-based Blue Jet Healthcare which manufactures contrast media intermediates and high-intensity sweeteners has raised Rs 840.27 crore via public issue, comprising only an offer-for-sale by the Arora family.
The price band for the offer was Rs 329-346 per share.
On the financials front, the pharma company recorded revenue from operations at Rs 721 crore for the year ended March FY23, growing 5.5 percent over the previous year, but the net profit was down by 11.87 percent on-year to Rs 160 crore during the last fiscal.
The net profit during the quarter ended June FY24 at Rs 44.1 crore jumped by 58.4 percent over the corresponding period last fiscal, and revenue from operations rose by 24.2 percent to Rs 179.5 crore in the same period.
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