Blue Jet Healthcare files draft papers with SEBI to raise funds via IPO

Mumbai-based pharmaceutical ingredients maker Blue Jet Healthcare Ltd has filed a draft red herring prospectus with Securities Exchange Board of India (SEBI) to raise funds via an initial public offering.

The IPO consists of a pure offer for sale of upto 21.68 million shares by its existing promoters and shareholders. Akshay Bansarilal Arora will sell around 18.37 million shares while Shiven Akshay Arora will offload upto 3.32 millions shares in the IPO.

Kotak Mahindra Capital, ICICI Securities and JP Morgan are the lead managers to the issue.

The company has manufacturing capabilities in contrast media intermediates and high-intensity sweeteners, including saccharin and its salts. Its operations are primarily organized in three product categories: contrast media intermediates, high intensity sweeteners, and pharma intermediates and active pharmaceutical ingredients.

Contrast media are agents used in medical imaging to enhance the visibility of body tissues under X-rays, computed tomography (CT), magnetic resonance imaging (MRI) or ultrasound. Saccharin is primarily used in table-top sweeteners, oral care products such as toothpastes and mouthwashes, beverages (primarily soft-drinks), confectionary products (such as mints, candies, and bakery products), pharmaceutical products, food supplements and animal feeds.

Its pharma intermediate and API business primarily focuses on collaborating with innovator pharmaceutical companies and multinational generic pharmaceutical companies by providing them with pharma intermediates that serve as building blocks for APIs in chronic therapeutic areas, such as the cardiovascular system (CVS), oncology and central nervous system (CNS), including new chemical entities (NCEs).

Blue Jet Healthcare has three manufacturing facilities, which are located in Shahad (Unit I), Ambernath (Unit II) and Mahad (Unit III) in Maharashtra, with an annual installed capacity of 200.60 KL, 607.30 KL and 213.00 KL, respectively, as of March 2022. In FY21, it acquired a “greenfield” manufacturing site on a leasehold basis in Ambernath (Unit IV). Its total manufacturing capacity increased to 1020.90 KL as of FY22 from 230KL in FY18, according to the company's DRHP filed with SEBI.

For FY22, the firm reported a revenue of Rs 683.47 crore against Rs 498.93 crore a year ago. Net profit for the year stood at Rs 181.59 crore versus Rs 135.79 crore last year. EBITDA margin for the year declined to 36.47 percent from 41.30 percent last year.