Blue Jet Healthcare IPO: Check GMP, subscription status on day 2, apply or not?

Blue Jet Healthcare IPO price band has been fixed in the range of ₹329 to ₹346 per equity share of face value of ₹2.

Blue Jet Healthcare IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors.

Blue Jet IPO subscription status

Blue Jet Healthcare IPO has been subscribed 1.32 times on day 2. Blue Jet IPO retail investors portion was subscribed 1.37 times, NII portion was subscribed 2.84 times, and Qualified Institutional Buyers (QIB) portion were booked just by 9%.

Also Read: Blue Jet Healthcare IPO: 10 key risks investors should know before subscribing to the issue

Blue Jet Healthcare IPO has received bids for 2,24,16,115 shares against 1,69,99,612 shares on offer, according to data from the BSE.

Blue Jet IPO GMP today

Blue Jet Healthcare IPO GMP today or grey market premium was +34, similar to the previous session. This indicates Blue Jet Healthcare share price were trading at a premium of ₹34 in the grey market on Thursday, according to investorgain.com in the morning. It has drastically dropped to ₹2 in the evening.

Also Read: Blue Jet Healthcare IPO: Five customers drive 76% of company’s revenue

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Blue Jet Healthcare share price was indicated at ₹348 apiece, which is 0.58% higher than the IPO price of ₹346.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

Also Read: Blue Jet Healthcare IPO: GMP, subscription status, review, other details. Apply or not?

Blue Jet IPO Review

Dilip Davda

“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. It is on capacity expansion spree and hopes to improve its performance in coming years. On the basis of annualized FY24 earnings, the issue appears fully priced. Investors may park funds for the medium to long-term rewards in this long race horse,” said Dilip Davda, the contributing editor at Chittorgarh.

“At the upper price band of Rs.346, Blue Jet Healthcare is available at a P/E of 34x (FY24E annualised EPS), which appears to be fully priced. Considering its strong business prospects, healthy return ratios, forward integration, greenfield expansion plans and promising industry outlook, we assign a “Subscribe” rating on a medium- to long-term basis,” said the brokerage in its report. 

Also Read: Blue Jet Healthcare IPO: Blue Jet IPO raises ₹252.08 crore from anchor investors; details here

Anand Rathi Share and Stock Brokers Ltd

According to the brokerage, at the upper price band company is valuing at P/E of 34x, EV/EBITDA 27x with a market cap of ₹ 60,019 million post issue of equity shares.

“We believe that valuations of the company is fairly priced and recommend a “Subscribe- Long Term” rating to the IPO,” the brokerage said.

Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities

According to Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities, Blue Jet Healthcare IPO offer gives investors an opportunity to invest in a Speciality pharmaceutical company which offers niche products to innovator pharmaceutical companies. With 20 years’ experience in manufacturing of contrast media intermediates and presence in making complex chemistries niche product categories in high-intensity sweeteners and contrast media intermediates gives high entry barriers to its competitors.

Also Read: Blue Jet Healthcare IPO: Check latest GMP, other issue details ahead of opening

“We also believe Blue Jets long standing relationships and multi-year contracts with multinational clients helps them to take care not only of the long term supply contracts but also to manage the warehousing and logistics for their customer.

By looking at the financials, Blue Jets has delivered good growth in FY 2022 but a subdued growth in FY 2023, achieving growth in Revenue/PAT of 37%/34% for FY 2022 and 5.49%/-12% in FY 2023.

On valuation parse at upper price band of ₹346/- and based on annualized earnings and fully diluted post-IPO paid-up capital, the issue is asking for a Market Cap of ₹6002 crore with P/E of 34x on consolidated basis, which appears the issue is fully priced-in looking at the revenue and profit growth. Due the company presence in niche product segment and has no immediate peers to compare so the issue may fetch demand on first mover advantage due to which there could be a decent listing gains expected. Long term Investors should look at offer with 100% OFS issue which is an area of concern for new investors hence we recommend investors to “SUBSCRIBE WITH RISK” in Blue Jet IPO offer with a decent listing gain perspective,” added Tapse.

Also Read: Blue Jet Healthcare IPO open for subscription: GMP, price band, issue details, 10 key things to know

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions

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Updated: 26 Oct 2023, 12:27 PM IST