Blue Jet Healthcare's initial public offering (IPO) opened for subscription on Wednesday, with a price band of Rs 329-346 per share. The company aims to raise about Rs 840 crore at the higher end of this range. The shares are currently trading at a premium of Rs 85 in the unlisted market. Investors can bid starting from 43 shares and in multiples thereafter.
The offering, which includes selling up to 2.42 crore shares each with a face value of Rs 2, by promoters Akshay Bansarilal Arora and Shiven Akshay Arora. The offer is split between qualified institutional buyers (50%), retail investors (35%), and non-institutional investors (15%).
Analysts from Choice and StoxBox recommend the IPO due to Blue Jet's unique Contract Development and Manufacturing Organization (CDMO) business model, which generates 75% of its revenue. Other factors contributing to their positive outlook include the company's niche product portfolio, long-term contracts securing 70% of its business, and robust financial performance. The company has shown a compound annual growth rate (CAGR) of 20.2% and 8.6%, with trailing twelve-month earnings per share of Rs 10.2.
The allotment process is expected to be completed by November 1, with a tentative listing date on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) set for November 6. The grey market premium (GMP) for Blue Jet Healthcare's IPO is Rs 54, with an estimated listing price of Rs 400.
The lead managers for this IPO are Kotak Investment Banking, ICICI Securities, and JP Morgan, while Link Intime India serves as the registrar.
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