Blue Jet Healthcare Limited, a Mumbai-based company in the Air Freight & Logistics industry, witnessed its initial public offering (IPO) oversubscribed by 7.95 times, indicating robust investor sentiment in the healthcare sector. The company's IPO involved up to 24,285,160 equity shares, priced between ₹329-₹346. Qualified institutional buyers and non-institutional investors subscribed at 13.72 and 13.59 times respectively, while retail investors showed less enthusiasm with a subscription rate of 2.24 times.
Despite the company's listing under the 'B' Group of Securities and a weekly return of 38.94%, Blue Jet is grappling with a high debt burden and a rapid cash burn rate. This has resulted in a year-to-date total return of -65.53%. Nevertheless, considering the pricing of the equity shares and a low revenue valuation multiple, some investors may still find it an attractive investment opportunity.
In other IPO news, Honasa Consumer's first day saw a subscription rate of 13%. The parent firm of Mamaearth had employees oversubscribe their portion by almost double, and retail investors subscribed at a rate of 34%. However, interest from qualified and non-institutional investors was less robust with rates of only 10% and 3%, respectively. Prior to the IPO, Honasa raised Rs 765.2 crore from anchor investors such as Abu Dhabi Investment Authority, Fidelity, ICICI Prudential, WhiteOak Capital, Franklin Templeton, SBI Life Insurance, and Max Life Insurance by issuing 23.6 million equity shares at Rs 324 per share.
Meanwhile, ESAF Small Finance Bank Limited's IPO aims to raise Rs 463 crore at a price band of Rs 57 to Rs 60 per share. The bank, which caters to unbanked and under-banked segments, experienced a compound annual growth rate (CAGR) of 39% in its assets under management (AUM), which grew from Rs 8,425.93 crore to Rs 16,331.27 crore between March 31, 2021, and June 30, 2023. During the same period, deposits increased from Rs 8,999.43 crores to Rs 14,665.63 crores, with retail deposits accounting for Rs 13,977.27 crore. The IPO is managed by ICICI Securities Limited, DAM Capital Advisors Limited, and Nuvama Wealth Management Limited.
InvestingPro Insights
Diving deeper into the financial health of Blue Jet Healthcare Limited, InvestingPro data reveals a mixed picture. The company boasts an impressive gross profit margin of 22.41% as of Q2 2023, indicating strong operational efficiency. However, the company has been struggling with profitability, showing a negative P/E ratio of -1.00 and a negative EBITDA growth of 70.06% in the last twelve months as of Q2 2023.
In terms of stock performance, Blue Jet has experienced significant depreciation over the past few years. The company's stock has fallen by 37.72% over the past year and by 42.68% year-to-date, according to InvestingPro data.
InvestingPro Tips suggest that while Blue Jet's gross profit margins are commendable, investors should be cautious given the company's lack of profitability and poor price performance over the last decade. Furthermore, the company's high revenue valuation multiple and lack of dividend payments may also be points of concern for potential investors.
For those interested in a deeper dive into Blue Jet's financial performance and more investing tips, they can visit InvestingPro's platform, which offers an additional wealth of information and insights.
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