Blue Jet Healthcare Limited's initial public offering (IPO), which opened on Wednesday, has seen a mixed response from investors. The IPO, priced at ₹329-₹346 per share, aims to raise ₹840.27 crore through an offer for sale (OFS). Despite trading at a ₹85 premium in the grey market, the shares were under-subscribed on their first day. The IPO is set to close on Friday, October 27th, 2023.
The company operates primarily as a Contract Development and Manufacturing Organization (CDMO), with about 75% of its business coming from these operations. Long-term contracts contribute approximately 70% of Blue Jet Healthcare's total business. The firm specializes in highly concentrated contrast media formulations and has plans to increase its installed capacity by around 50% over FY25E through brownfield and greenfield expansions.
Investors can apply for the IPO in lots of 43 shares each. The allocation and listing of shares are expected to occur on November 1st and November 6th, respectively. Both Choice Broking and Reliance Securities have recommended subscribing to the IPO due to strong growth prospects and valuation comfort.
On the first day of the IPO, it was subscribed to 69%. Retail investors subscribed to 78%, non-institutional investors (NIIs) to 1.37 times, and Qualified Institutional Buyers (QIBs) to just 1% of their portions. Bids were received for 1,16,53,645 shares against the offered 1,69,99,612 shares.
Promoters Shiven Akshay Arora, Akshay Bansarilal Arora, and Archana & Akshay Arora are offering an OFS of 24,285,160 equity shares as per the Red Herring Prospectus (RHP). The IPO has raised ₹252.08 crore from anchor investors, with Shiven Akshay Arora and Akshay Bansarilal Arora selling up to 5,918,849 and 18,366,311 equity shares respectively.
Link Intime India Private Ltd is the official registrar for this IPO, while Kotak Mahindra Capital Company Limited, ICICI Securities Limited, and J.P. Morgan India Private Limited are serving as the lead managers.
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