Blue Jet Healthcare sets IPO price band at Rs 329-346, aims to raise Rs 840 crore

Blue Jet Healthcare has established a price range of Rs 329-346 for its initial public offering, which pertains to the development of specialty pharmaceutical and healthcare constituents.

Prior to the bidding for the anchor book, which will occur for a single day on October 23, the issue will be available for subscription from October 25th to October 27th.

Offer-for-sale (OFS) shares by promoters in excess of 2.4 crore comprise the sole offering portion of the IPO; no fresh issues are included. The selling shareholders, the Arora family, will therefore receive the entire issue proceeds; the company will receive no compensation from the offer.

Through an upper price band public offering, the organization intends to raise Rs 840.27 crore.

After that, investors are permitted to submit bids for an increment of 43 shares in multiples of 43. As a result, retail investors are restricted to an investment limit of Rs 2 lakh in the IPO, with a minimum application size of Rs 14,878 (43 shares) and a maximum investment of Rs 1,93,414 (559 shares).

Semi-qualified institutional purchasers will receive 50% of the offer size, while high-net-worth individuals will receive 15%. The pharmaceutical company is headquartered in Maharashtra. In addition, retail investors have been allocated the remaining 35% of the problem.

Blue Jet Healthcare functions within three product categories: contrast media intermediates, high-intensity sweeteners, and pharmaceutical intermediates and active pharmaceutical ingredients (APIs). The company adopted a contract development and manufacturing organization (CDMO) business model to sustain its operations.

GE Healthcare AS, Guerbet Group, Bracco Imaging SpA, Colgate-Palmolive (India), Unilever, Prinova US LLC, and MMAG Company are among the clients that the organization serves with its specialized chemistry capabilities in contrast media intermediates and high-intensity additives.

In FY23, revenue from operations in the European region accounted for 74.5 percent of total revenue. India and the United States followed with 14 and nearly 5 percent, respectively.

Profit for the quarter ended June FY24 at Rs 44.1 crore increased by 58.4 percent over the corresponding period in the previous fiscal year, while revenue from operations increased by 24.2 percent to Rs 179.5 crore. Revenue from operations increased by 5.5 percent year-over-year to Rs 721 crore for the year ended March FY23; however, net profit decreased by 11.87 percent year-over-year to Rs 160 crore during the same period.

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Korat Mahindra Capital Company, ICICI Securities, and JP Morgan India are the book running primary managers for this matter.