Blue Jet Healthcare IPO bought 7.94 times on final day, grey market premium drops

Blue Jet Healthcare IPO closes today

The Blue Jet Healthcare IPO had been subscribed 7.94 times by the evening of October 27, the final day of bidding, with bids coming in for 13.5 crore equity shares against an offer size of 1.7 crore.

High networth individuals (HNIs) have bought 13.59 times their allotted quota followed by qualified institutional buyers who bought 13.72 times the portion set aside so far. Retail investors’ portion had been subscribed 2.22 times.

Half of the issue size, which is purely an offer of sale, has been reserved for qualified institutional buyers. The remaining is divided among HNIs and retail investors in the ratio of 30:70.

The Maharashtra-based pharmaceutical and healthcare ingredient firm intends to raise Rs 840.27 crore through the offer at the upper price band, comprising only an offer-for-sale by the Arora family. The company will not receive any money from the public issue.

Also read: Mamaearth sets price band of Rs 308-324 a share for October 31 IPO

The price band for the IPO, which opened on October 25, is Rs 329-346 a share.

The firm has already raised Rs 252 crore from several anchor investors, including HSBC Global, Societe Generale, Government Pension Fund Global, HDFC Mutual Fund, Troo Capital, ICICI Prudential Mutual Fund, Aditya Birla Sun Life Insurance Company, and BNP Paribas Arbitrage.

Blue Jet, which caters to pharmaceutical companies with its contract development and manufacturing organisation business model, will finalise the basis of allotment of IPO shares by November 1. The shares will be credited to the demat accounts of successful investors by November 3.

Also read: Diwali IPO Rush: Half a dozen companies expected to go public; all eyes on Tata Tech, Mamaearth

The trading in shares will commence on the BSE and NSE from November 6, as per the IPO schedule given by the company.

The prevailing weak market conditions have seen the grey market premium slip to 6 percent from 10 percent, analysts said.

The grey market is an unofficial platform for trading in IPO shares till the listing day. Investors keep a tab on grey market to get an idea of the listing price.

In the previous six trading days, the market has fallen almost 5 percent before showing some recovery on October 27, amid elevated US bond yields, and geopolitical tensions.