Blue Jet Healthcare sets IPO price band at Rs 329-346, aims to raise Rs 840 crore

Blue Jet Healthcare IPO opens on October 25

Speciality pharmaceutical and healthcare ingredients developer Blue Jet Healthcare has set the price band for its initial public offer at Rs 329-346.

The issue opens for subscription on October 25 and closes on October 27, while the bidding for anchor book will take place for a day on October 23.

The IPO consists of only an offer-for-sale (OFS) component of over 2.4 crore equity shares by promoters, and there is no fresh issue portion. Hence, the entire issue proceeds will go to selling shareholders, the Arora family, and the company will not get any money from the offer.

The company is planning to raise Rs 840.27 crore from the public issue, at the upper price band.

Investors can bid for a minimum of 43 equity shares and in multiples of 43 shares thereafter. Hence, the minimum application size by retail investors would be Rs 14,878 (43 shares) and their maximum investment can be Rs 1,93,414 (559 shares) as they cannot exceed an investment limit of Rs 2 lakh in the IPO.

The Maharashtra-based pharma company has reserved half of its offer size for qualified institutional buyers, and 15 percent for high net-worth individuals. And the remaining 35 percent portion of issue has been set aside for retail investors.

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Blue Jet Healthcare, which established a contract development and manufacturing organization (CDMO) business model, operates its business in three product categories, one is contrast media intermediates, second is high-intensity sweeteners, and the last is pharma intermediates and active pharmaceutical ingredients (APIs).

Further, with specialised chemistry capabilities in contrast media intermediates, and high-intensity sweeteners, the company caters to customers like GE Healthcare AS, Guerbet Group, Bracco Imaging SpA, Colgate-Palmolive (India), Unilever, Prinova US LLC, and MMAG Company.

European region contributed the most to its revenue from operations, which was 74.5 percent of revenue in FY23, followed by India with 14 percent contribution and USA nearly 5 percent.

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The revenue from operations in the year ended March FY23 grew 5.5 percent year-on-year to Rs 721 crore, but the net profit was down by 11.87 percent on-year to Rs 160 crore during the last fiscal, while the profit during the quarter ended June FY24 at Rs 44.1 crore jumped by 58.4 percent over corresponding period last fiscal, and revenue from operations rose by 24.2 percent to Rs 179.5 crore in the same period.

The book running lead managers to the issue are Kotak Mahindra Capital Company, ICICI Securities, and JP Morgan India.