Company and IPO Overview:
Blue Jet Healthcare is a specialty pharmaceutical and healthcare ingredient and intermediate company. It has established a contract development and manufacturing organization (CDMO) business model with specialized chemistry capabilities in contrast media intermediates and high-intensity sweeteners, on the back of strategic and early investments in research and development (R&D) and manufacturing infrastructure. The company mainly deals in three product categories: (i) contrast media intermediates, (ii) high-intensity sweeteners, and (iii) pharma intermediates and active pharmaceutical ingredients.
Blue Jet Healthcare operations are primarily organized in three product categories:
1. Contrast Media Intermediates.
2. High-intensity Sweeteners.
3. Pharma Intermediates, and Active Pharmaceutical Ingredients (APIs).
Blue Jet Healthcare IPO is also a main board IPO which is ready to go public, the company is about to raise around ₹ 840.27 crores via IPO comprising Offer For Sale (OFS) only. The price band of the issue is ₹ 329 to ₹ 346 with a minimum market lot of 43 shares. Blue Jet Healthcare IPO subscription quota for retail is 35.00%, NII is 15.00% and QIB is 50.00%.
Financials (rounded off):
Date | Total Revenue (₹ in cr) | PAT (₹ in cr) |
31/03/2021 | 508 | 136 |
31/03/2022 | 703 | 182 |
31/03/2023 | 745 | 160 |
Objectives of the Issue:
The company will not receive any proceeds from the Offer and all the Offer Proceeds will be received by the Selling Shareholders, in proportion to the Offered Shares sold by the respective Selling Shareholders as part of the Offer.
IPO Details:
IPO Date | 25/10/2023-27/10/2023 |
Face Value | ₹2 per share |
IPO Price Band | ₹329-₹346 per share |
IPO Lot Size | 43 Shares |
Listing at | NSE, BSE |
Basis of Allotment | 01/11/2023 |
Credit of Shares in Demat | 03/11/2023 |
Listing Date | 06/11/2023 |
Pre-Issue Shareholding | 100% |
Post-Issue Shareholding | 86% |
Retail Minimum Lot Size | 43 shares (₹14,878) |
Valuations & Margins:
Indicators | FY 21 | FY 22 | FY 23 |
EPS | 7.98 | 10.47 | 9.23 |
P/E | - | - | 37.5 |
EBITDA (%) | 41.3 | 36.47 | 30.39 |
ROCE (%) | 49.7 | 47.13 | 31.91 |
Important things to note about the Company:
Top reasons to consider the IPO:
1. Blue Jet Healthcare’s strength lies in its integrated production process, which guarantees quality and cost-effectiveness. It manufactures crucial intermediates for contrast media and is a supplier to top manufacturers like GE Healthcare AS, Guerbet Group, and Bracco Imaging.
2. Blue Jet Healthcare operates in niche segments that have high entry barriers and complex chemistry requirements. It focuses on contrast media intermediate and high-intensity sweetener categories, where it has a strong market position and expertise.
3. Blue Jet Healthcare has long-term and stable relationships with multinational customers, including industry leaders in contrast media and tabletop sweeteners. It has been serving Colgate, Hindustan Unilever, and others giving it a competitive edge and customer loyalty.
4. Strong product development and process optimization capabilities with a focus on sustainability. Blue Jet Healthcare collaborates and enters into annual and multi-year supply contracts thus providing strong visibility and predictability of order book revenue.
Risk Factors to watch out in the IPO:
1. Blue Jet Healthcare is heavily reliant on the speciality pharmaceutical and healthcare sectors, with a significant portion of its business coming from a small number of key customers. In fact, 81% of its revenue is generated from its top ten customers.
2. A large portion of Blue Jet Healthcare’s revenue, 80% to be precise, comes from exports to Europe and the US. Any slowdown in market growth or entry of new competitors in these regions could affect the company’s revenue.
3. Blue Jet Healthcare depends on third-party suppliers for raw materials, with its three largest suppliers in China, Norway, and India. Any increase in raw material costs could affect the company’s operations.
Crisp Insights:
Blue Jet Healthcare IPO GMP Today: The Company is commanding a GMP of 25%.
Blue Jet Healthcare GMP is good and hence, listing gains are possible.
Blue Jet Healthcare IPO Review: Blue Jet Healthcare has created a niche place in the global markets for the products manufactured by it and enjoys long term relationship with marquee customers and FMCGs. With plans to enhance operational efficiency and expand production capacity, the company aims to meet growing customer demand. On the basis of annualized FY24 earnings, the issue appears fully priced. Application in the IPO can be rewarding in the long term.
Disclaimer: All information is provided for educational and informational purpose only. Data is fetched from publicly available sources such as the DRHP filed by the company. The website or the author takes no guarantee for the accuracy of the data however, we have tried our best to present accurate data to out readers. Please consult a financial advisor or do your own analysis before investing/trading in the stock market.
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