Shares of pharmaceutical ingredient maker Blue Jet Healthcare Ltd on Wednesday made a stock market debut and listed on the bourses with a premium of nearly 10 per cent against the issue price of Rs 346. On the NSE, Blue Jet’s shares were listed at Rs 380, rallying 9.82 per cent from the issue price. Later, it jumped 16.28 per cent to Rs 402.35.
The stock began the trade at Rs 359.90, registering a gain of 4 per cent on the BSE. It further zoomed 14.40 per cent to Rs 395.85. The Initial Public Offering (IPO) of Blue Jet Healthcare was subscribed 7.95 times on the final day of subscription on Friday.
Shivani Nyati, head (wealth) at Swastika Investmart, said, “Blue Jet Healthcare made its debut on the stock markets today (Wednesday), by listing at Rs 380 per share, a premium of around 10 per cent to its IPO price of Rs 346. The IPO was subscribed 7.95 times, which is a good subscription level.”
She added that Blue Jet Healthcare is a manufacturer of contrast media intermediates and high-intensity sweeteners. The company has a strong competitive advantage due to its high entry barriers and long-term relationships with multinational customers.
The company’s financial performance is also strong, with consistent revenue and profit growth in recent years, Nyati said.
“Overall, the listing of Blue Jet Healthcare was a success. The company’s strong fundamentals and good subscription levels were positive factors for this. Investors may hold it by keeping a stop loss at Rs 340,” she said.
The Rs 840.27-crore IPO had a price range of Rs 329-346 a share. The Mumbai-based firm, which operates under the brand name of “Blue Jet”, is offering niche products targeted towards innovator pharmaceutical companies and multinational generic pharmaceutical companies.
Its business model focuses on the collaboration, development and manufacturing of complex chemistry categories. Over the past five decades, the company has developed over 100 products, of which over 40 have been commercialised, the company said.
As of June 30, 2023, the company had three manufacturing facilities in Shahad, Ambernath, and Mahad in Maharashtra. Further, in its efforts to expand the capacity in FY21, it acquired a “greenfield” industrial facility on a leasehold basis in Ambernath.
Blue Jet IPO was subscribed 7.95 times on the final day of subscription on Friday. The Rs 840.27-crore IPO received bids for 13,51,86,496 shares, against 1,69,99,612 shares on offer, as per NSE data.
The portion for non-institutional investors was subscribed 13.59 times, while the category for Retail Individual Investors (RIIs) received 2.24 times subscription. The qualified institutional buyers (QIBs) part got 13.72 times subscription.
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