Specialty pharmaceutical and healthcare ingredients developer, Blue Jet Healthcare, has unveiled its initial public offering (IPO) price range at Rs 329-346.
The subscription window for this offering is scheduled to open on October 25 and will conclude on October 27, with an anchor book bidding day set for October 23.
It’s important to note that this IPO solely consists of an offer-for-sale (OFS) component involving over 2.4 crore equity shares offered by the promoters. Consequently, all proceeds from this offering will go to the selling shareholders, the Arora family, and the company itself will not benefit financially from the IPO.
Blue Jet Healthcare aims to raise Rs 840.27 crore from the public issue at the upper end of the price band.
For interested investors, the minimum bid quantity is 43 equity shares, with multiples of 43 shares for additional investments. Consequently, retail investors will need a minimum of Rs 14,878 (43 shares) to participate, and their maximum investment cannot exceed Rs 1,93,414 (559 shares) due to an investment limit of Rs 2 lakh for the IPO.
The pharmaceutical company based in Maharashtra has reserved 50% of the offering for qualified institutional buyers and allocated 15% for high net-worth individuals. The remaining 35% of the issue is designated for retail investors.
Blue Jet Healthcare operates under a contract development and manufacturing organization (CDMO) business model, with activities spanning three product categories: contrast media intermediates, high-intensity sweeteners, and pharmaceutical intermediates and active pharmaceutical ingredients (APIs).
With specialized chemistry capabilities in contrast media intermediates and high-intensity sweeteners, the company serves clients such as GE Healthcare AS, Guerbet Group, Bracco Imaging SpA, Colgate-Palmolive (India), Unilever, Prinova US LLC, and MMAG Company.
The European region is the primary contributor to its revenue from operations, accounting for 74.5% of FY23 revenues, followed by India at 14% and the USA at nearly 5%.
While revenue from operations in the fiscal year ending March FY23 grew by 5.5% year-on-year to reach Rs 721 crore, net profit declined by 11.87% year-on-year to Rs 160 crore during the last fiscal year. However, in the quarter ending June FY24, the company’s profit surged by 58.4% over the corresponding period in the previous fiscal, with revenue from operations rising by 24.2% to Rs 179.5 crore in the same period.
The book running lead managers for this IPO are Kotak Mahindra Capital Company, ICICI Securities, and JP Morgan India.
