Blue Jet Healthcare debuts at a premium of 10% at Rs 380 per share on the NSE

Blue Jet Healthcare, a prominent player in the pharmaceutical and healthcare ingredients sector, made its debut on the Indian stock market today.

The stock debuted at a premium of 3.8%, at Rs 359.90 per share over the issue price on the BSE, and hit the upper circuit limit of 10%. However, on the NSE, the stock opened at Rs 380 per share, marking a 9.8% increase from its initial public offering price of Rs 346 per share.

At the time of writing, the stock is trading at Rs 395.85 per share on the BSE, with intraday highs and lows of Rs 395.85 and Rs 359.90, respectively. The current market capitalisation of the company stands at Rs 6866.63 crore. Furthermore, the stock has hit the upper circuit limit price of 10% on the BSE, and currently, there are no sellers ready to sell the shares in the market.

Kotak Mahindra Capital Company Limited, ICICI Securities Limited, and JP Morgan India Private Limited are the book-running lead managers of the IPO, while Link Intime India Private Ltd is the registrar for the issue.

IPO Proceeds: 

The company will not receive any proceeds from the offer and all the 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.

Company profile:

Blue Jet Healthcare is a prominent player in the pharmaceutical and healthcare ingredients sector. It holds the distinction of being the pioneering manufacturer of saccharin and its derivatives, artificial sweeteners, in India. It was incorporated in 1968. Over the years, the company has diversified its offerings to include contrast media intermediates crucial for CT scans and MRIs, in addition to their core product categories: contrast media intermediates, high-intensity sweeteners, pharmaceutical intermediates, and active pharmaceutical ingredients.

The company is a globally renowned pharmaceutical enterprise, distinguished by its strong commitment to scientific innovation. The company’s extensive capabilities encompass process development and production, bolstered by a robust global regulatory support system. Furthermore, Blue Jet Healthcare is a valued partner in the collaborative development and manufacturing of advanced pharmaceutical intermediates and active pharmaceutical ingredients, solidifying its status as a key player in the healthcare industry.

Subscription details:

On October 27, 2023, the final day of the IPO window, the IPO witnessed a response with a subscription rate of 7.95 times. The public issue interest, as the retail category was subscribed 2.24 times, the QIB category achieved a subscription rate of 13.72 times, and the NII category reached a subscription rate of 13.59 times.

The company attracted Rs 252.08 crore from various anchor investors by allocating 72.85 lakh equity shares at Rs 346 per share. The complete lock-in period for these anchor investors ends on March 7, 2024.

The IPO price range was set between Rs 329 and Rs 346 per share, with a face value of Rs 2 per share and a lot size of 43 shares. The total size of the company’s IPO was Rs 840.27 crore, and the final share issue price was fixed at Rs 346 each.

Financial Performance:

Conclusion: 

The essential question on everyone’s mind is whether to retain the shares. Considering the current market conditions, where broader indices have retraced from their all-time highs and are currently trading near the crucial level of 19,000, investors who primarily applied for listing gains have already earned a substantial 13.42% on the listing day itself. Furthermore, the stock has hit the upper circuit, making it a potential candidate for holding. Investors can consider maintaining their positions with a stop loss set at today’s lowest price of Rs 360 per share on the BSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.