Blue Jet Healthcare LTD. IPO -Review, Valuation & GMP

Blue Jet Healthcare Limited - Complete Overview

Established in 1968, Blue Jet Healthcare is a specialized company in pharmaceutical and healthcare ingredients and intermediates. They offer unique products tailored for innovator pharmaceutical companies and multinational generic pharmaceutical companies.

Notably, the company holds the distinction of being the first manufacturer of saccharin and its salts (artificial sweeteners) in India. Over time, they diversified into the production of contrast media intermediates, which are essential components in CT scans and MRIs.

Blue Jet Healthcare's operations are primarily categorized into three product segments: (i) contrast media intermediates, (ii) high-intensity sweeteners, and (iii) pharmaceutical intermediates and active pharmaceutical ingredients.

The company provides robust capabilities in process development and production, global regulatory support, as well as collaboration and manufacturing of advanced pharmaceutical intermediates and APIs. As of June 2023, they have served over 400 customers across 39 countries.

Currently, Blue Jet Healthcare operates three manufacturing facilities situated in Shahad (Unit I), Ambernath (Unit II), and Mahad (Unit III) in the state of Maharashtra, India. These facilities have a combined annual installed capacity of 200.60 KL, 607.30 KL, and 213.00 KL, respectively, as of June 30, 2023.

 

What does the company do? 

Blue Jet Healthcare is a specialized company in pharmaceutical and healthcare ingredients and intermediates.

 

 

IPO Overview

The Blue Jet Healthcare Limited IPO date is scheduled to open from October 25, 2023, through October 27, 2023, with expectations of being listed on both the NSE and BSE markets on November 6, 2023.

The Blue Jet Healthcare Limited IPO price is set in the range of Rs. 329 to Rs. 346 per share. The company aims to raise Rs. 840.27 Cr in funds through this upcoming IPO.

It's important to note that this issue is exclusively an offer for sale. Regarding allocation, the company has earmarked 50% of the shares for institutional investors, 15% for non-institutional investors, and 35% for retail investors.

 

Blue Jet Healthcare Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	25 October 2023
IPO Closing Date	27 October 2023
IPO Allotment Date	1 November 2023
Refund initiation	1 November 2023
IPO Listing Date	6 November 2023

 

Blue Jet Healthcare Limited IPO Details

IPO Opening & Closing Date	25 October to 27 October 2023
Face value	Rs.2 per share
Issue Price	Rs. 329 to Rs. 346 per share
Lot Size	43 Shares
Price of 1 lot	Rs. 14,878
Issue Size	24,285,160 Shares (aggregating up to Rs. 840.27 Cr)
Offer for Sale	24,285,160 shares of Rs. 2 (aggregating up to Rs. 840.27 Cr)
Fresh issue	NA
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Pvt. Ltd.

 

Blue Jet Healthcare Limited IPO Lot Details 

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lot
Minimum Lot Investment (HNI)	14 Lot
Maximum Lot Investment (HNI)	67 Lot

 

Blue Jet Healthcare Limited IPO Reservation

Institutional share Portion	50%
Non-institutional share Portion	15%
Retail share Portion	35%

 

Company Financial

Amount in Crores

Period	31 Mar 2023	31 Mar 2022	31 Mar 2021
Total Assets	862.07	713.38	536.27
Total Revenue	744.94	702.88	507.81
PAT	160.03	181.59	135.79
Net worth	681.49	521.54	339.82
Reserve & Surplus
Total Borrowings

 

Geography-wise Revenue Bifurcation

(Amount in Million)

Particulars	FY 21	FY  22	FY 23
Europe	3,940.19	5,147.85	5,351.41
India	716.55	1,159.70	1,001.84
USA	170.13	282.96	350.81
Others	115.23	177.29	480.75
Total	4,942.10	6,767.80	7,184.81

 

Product-wise Revenue Bifurcation

(Amount in Million)

Product Category	FY 21	FY  22	FY 23
Contrast media intermediates	3,535.86	4,778.38	5,070.16
High-intensity sweeteners	987.24	1,574.83	1,758.97
Pharma intermediates and API	417.67	411.58	339.84
Others	1.33	3.01	15.84
Revenue from operations from a contract with customers	4,942.10	6,767.80	7,184.81

 

Objective of the Issue

Since this is an offer-for-sale issue, it's important to note that the company will not receive any proceeds, and instead, all the Offer Proceeds will go to the Selling Shareholders.

 

Promoters and Management of Blue Jet Healthcare Limited

Akshay Bansarilal Arora, Shiven Akshay Arora and Archana Akshay Arora are the promoters of the company. 

Pre-issue Promoter Shareholding	100%
Post-issue Promoter Shareholding	86%

 

Peer Comparison

According to Blue Jet Healthcare Limited's IPO DRHP, there are no companies listed in India that operate a business similar to that of the company.

 

IPO's Valuations

With an IPO price range of Rs. 329 to Rs. 346 per share and an EPS of 9.23, the P/E ratio for the IPO valuation, calculated based on the higher end of the price range, amounts to 37.48.

 

Dividend Policy

The company has not distributed any dividends on its equity shares, but it did disburse a total of Rs 15 million in dividends every year on its preference shares throughout the fiscal years 2021, 2022, and 2023.

 

IPO's Strengths

• A prominent Indian producer specializing in contrast media intermediates.
• Operates within specialized sectors featuring significant entry barriers.
• Maintains enduring partnerships and multi-year agreements with multinational clientele.
• Demonstrates robust product innovation and process enhancement competencies, emphasizing sustainability.
• Production facilities with recognized regulatory credentials.
• Guided by an experienced management team renowned for effective execution.

 

IPO weaknesses

• If the company fails to promptly bring new products to market, it could have adverse effects on its business, financial health, and prospects.
• Some of the documents filed by the company with the Registrar of Companies and certain corporate records and other documents are currently untraceable.
• The company encountered delays in filing its audited consolidated financial statements for the 2020 financial year, and such delays in complying with regulatory requirements may have a detrimental impact on the business.
• The company relies on a limited number of suppliers for its raw materials, with the three largest suppliers situated in China, Norway, and India.
• The company is exposed to foreign exchange risks, which have the potential to adversely affect its business.
• Both the manufacturing facilities and procurement operations of the company are concentrated within a single state.
• The company is subject to extensive government regulations, and its failure to obtain, maintain, or renew the necessary statutory and regulatory licenses, permits, and approvals could negatively affect its business.
• The company is currently or may become, embroiled in various legal and regulatory proceedings.

 

 

IPO GMP Today

The Latest GMP of Blue Jet Healthcare IPO is Rs. 85

 

Conclusion

The company holds a robust position within specialized global markets, boasting a substantial global consumer base. Moreover, it's actively exploring capacity expansion, anticipating favourable profits in the near future. Seasoned investors are encouraged to consider the issue following a thorough analysis to optimize potential outcomes.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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