Blue Jet Healthcare IPO to open on Oct 25 with no fresh issue component

Blue Jet Healthcare IPO opens on October 25

Blue Jet Healthcare, a speciality pharmaceutical and healthcare ingredients and intermediates company, is ready to launch its maiden public issue on October 25. This would be the second offer in the mainboard segment this month after IRM Energy.

The anchor book of the issue, which is a part of the QIB (qualified institutional buyers) portion, will be opened for a day on October 23, while the offer will close on October 27. The company will announce the issue price band and lot size on October 19.

The public issue comprises only an offer-for-sale (OFS) portion of 2.4 crore equity shares by promoters Akshay Bansarilal Arora, and his son Shiven Akshay Arora, while there is no fresh issue component. It is 100 percent owned by the Arora family.

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Half of the issue size is reserved for QIBs, 15 percent for high net-worth individuals and the remaining 35 percent is kept for retail investors.

About the company

Since its incorporation in 1968, Blue Jet has established a contract development and manufacturing organization (CDMO) business model with specialised chemistry capabilities in three categories - contrast media intermediates, high-intensity sweeteners, and pharma intermediates and active pharmaceutical ingredients. It has built a long-term customer base, with invoicing more than 400 customers in 39 countries since FY21.

With three manufacturing facilities in Maharashtra, the company caters to several global and domestic customers, including GE Healthcare AS, Guerbet Group, Bracco Imaging SpA, Colgate-Palmolive (India), Unilever, Prinova US LLC, and MMAG Company.

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Financial performance

The financial performance was weak in the past financial years, though it was better in the first quarter of fiscal FY24. The company's net profit dropped 11.87 percent on-year to Rs 160 crore for the year ended March FY23, with 12.1 percent drop in EBITDA (earnings before interest, tax, depreciation amortisation) at Rs 219 crore and margin falling 609 bps at 30.4 percent, while the revenue from operations grew by 5.5 percent year-on-year to Rs 721 crore during the same period.

However, net profit during the quarter ended June FY24 surged 58.4 percent on-year to Rs 44.1 crore with revenue from operations rising 24.2 percent to Rs 179.5 crore from a year ago. EBITDA for the quarter at Rs 59 crore was increased by 54 percent with a margin expansion of 633 bps at 32.84 percent compared to the June quarter of FY23.

Listing date

Blue Jet, in consultation with the NSE, will finalise the basis of allotment of IPO shares by November 1 and the equity shares will be credited to demat accounts of successful investors by November 3.

The trading in equity shares will be commenced on the BSE and the NSE, with effect from November 6, which is T+6 timeline, as per IPO schedule.

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Kotak Mahindra Capital Company, ICICI Securities, and JP Morgan India are the merchant bankers to the offer, while Link Intime India is the registrar to the issue.