Blue Jet Healthcare Limited

About Blue Jet Healthcare Limited IPO

Incorporated in 1968, Blue Jet Healthcare is a specialty pharmaceutical and healthcare ingredients maker. It offers niche products to pharmaceutical companies in three product categories, namely – contrast media intermediates, high-intensity sweeteners and pharma intermediates and active pharmaceutical ingredients (APIs).

Contrast media are agents used in medical imaging to enhance the visibility of body tissues under X-rays, computed tomography (CT), magnetic resonance imaging (MRI) or ultrasound. High-intensity sweeteners include saccharin used in table-top sweeteners, oral care products such as toothpastes and mouthwashes, beverages (primarily soft-drinks) and other confectionery products. Pharma intermediates and APIs serve as building blocks for APIs in areas of the cardiovascular system (CVS), oncology and central nervous system (CNS). 

The company operates on a CDMO business model, which stands for contract development and manufacturing organisation. It also has a backward integration business model for the production of saccharin, which means that it carries out the entire process of development, manufacturing and marketing of saccharin and its salts. 

It operates three manufacturing facilities in Shahad, Ambernath and Mahad in Maharashtra. As of 30 June 2023, the annual installed capacity is 200.60 KL, 607.30 KL and 213.00 KL, respectively. 

As of 30 June 2023, it has served over 400 customers in 39 countries. Out of which, Europe accounted for 77.5% of its total revenue from sales, while India accounted for 12.2%. Meanwhile, contrast media intermediates contributed the highest (72%) to overall revenue. Some of its customers include GE Healthcare AS, Guerbet Group, Bracco Imaging S.p.A, Colgate Palmolive (India), Unilever, Prinova US LLC, and MMAG Co.

In the last three years, the company has seen a CAGR rise of 13% in its revenue from operations and over 5% in its profit. During the same period, EBITDA margin was in the range of 30% to 41%. Moreover, the company supplies its products to three of the four largest contrast media manufacturers in the world which make up 70% of the market. It is expected to grow at a CAGR of 6% to 8% between FY23 and FY25. It also supplies Saccharin to the dominant global players in the oral care and non-alcoholic beverages market. All of which could be beneficial for the company. 

And now, Blue Jet Healthcare Limited is coming out with its initial public offer (IPO). The entire IPO will be an offer for sale and all the offer proceeds will be received by its selling shareholders. Its shares will be listed on the NSE and the BSE.

Here are key details about the Blue Jet Healthcare IPO:

 Financial snapshot

Here’s a quick look at Blue Jet Healthcare Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)

Strengths and opportunities

1. Large manufacturer of contrast media intermediates in India with an experience of more than two decades.
2. Presence in niche categories with high barriers to entry because of strict internal standards of contrast media manufacturers and the relationships between them and their existing suppliers, typically supported by long-term supply contracts.
3. Long-term customer relationships ranging from four to 24 years in the contrast media intermediate category, and three to 14 years in the high-intensity sweetener category. 
4. Strong R&D capabilities approved by the Department of Scientific and Industrial Research (DSIR) in 2018. 
5. Manufacturing facilities with regulatory accreditations, one of which has been subjected to US-FDA inspections in FY18. 

Risks and threat

1. Dependent on revenue from its five largest customers which accounted for over 74% of its total income from operations in FY23.
2. Dependent on the limited number of clients for its raw material supply. China, Norway and India are the most prominent suppliers. Hence, delays or interruptions in these countries could lead to shortages of raw material.
3. Exposed to counterparty credit risk with gross trade receivables of ₹239 crore as of 31 March 2023. 
4. Derives significant revenue from Europe and India, accounting for 74% and 13% of the total income from sales in FY23. 
5. Faces forex risks as exports to regions outside India accounted for 84%, 82%, and 85% of its total revenue from operations in FY21, FY22 and FY23 respectively. 
6. Operates a capital intensive business with significant working capital requirements.  

Blue Jet Healthcare Limited IPO details

| Blue Jet Healthcare Limited IPO date 

According to the offer document filed by the company with the SEBI, the Blue Jet Healthcare IPO’s opening date – in other words, the Blue Jet Healthcare IPO launch date – will be 25th October 2023. The Blue Jet Healthcare IPO closing date is 27th October 2023. After this, investors will be updated about the allotment status on 1st November 2023.

Investors, who have been allotted shares, can expect them to be credited to their demat account on 3rd November 2023. The Blue Jet Healthcare IPO listing date is 6th November 2023. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE. 

| Blue Jet Healthcare IPO Price Band

The entire IPO is an offer for sale. The Blue Jet Healthcare IPO price band has been set between ₹329 and ₹346 per share. Interested investors can choose a price within this band to apply for the IPO. 

The Blue Jet Healthcare IPO listing price will be determined on 6th November 2023. The listing price is the price at which a company’s shares debut on the stock exchanges.

| Blue Jet Healthcare IPO Lot size

The Blue Jet Healthcare IPO details have been declared. The Blue Jet Healthcare IPO lot size is set at 43 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Blue Jet Healthcare IPO issue size is approx ₹840 crore. 

How to apply for the Blue Jet Healthcare Limited IPO?

If you are interested in this investment opportunity but unsure how to apply for the Blue Jet Healthcare IPO, here are the steps that you need to follow.

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Blue Jet Healthcare Ltd IPO on Upstox: 

1. Log in to your Upstox account, using your six-digit PIN
2. After logging in, click on ‘Discover’
3. On the ‘Discover’ tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Blue Jet Healthcare IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

How to check the Blue Jet Healthcare Limited IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. 

Here’s a step-by-step guide on how to check the Blue Jet Healthcare Ltd IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After logging in, click on ‘Discover’
3. On the ‘Discover’ page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your Blue Jet Healthcare IPO allotment status will be mentioned

Open a demat account with Upstox to apply for the Blue Jet Healthcare Limited IPO

To apply for the Blue Jet Healthcare Ltd IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.

Here is a step-by-step guide on how to open a demat account with Upstox:

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details 
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque and your bank statement as needed
4. Complete the e-verification using the OTP sent to your registered mobile number

This is all it takes to open a demat account with Upstox. Easy and quick, right?  

Upstox – trading app to apply for the Blue Jet Healthcare Limited IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India. 

You can apply for the Blue Jet Healthcare IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero. 

In fact, due to its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.