Blue Jet Healthcare shares list at premium; rise 15% post debut

Shares of Blue Jet Healthcare made a decent debut on the stock exchanges today despite weakness in the broader market. The stock of the specialty pharmaceutical company listed at ₹380 on the NSE, a premium of 9.8% over the issue price of ₹346 per share. On the BSE, Blue Jet Healthcare shares opened at ₹359.90, up 4% over the IPO price.

Post listing, Blue Jet Healthcare shares extended gain and rose 15.2% to touch a high of ₹398.60 on the NSE, while it hit a high of ₹395.85 on the BSE. The market capitalisation rose to ₹6,866.6 crore.

In comparison, the BSE Sensex was down 214 points, or 0.33%, at 63,661 level, while the Nifty50 dropped 28 points, or 0.15%, to 19,051 mark.

The positive listing of Blue Jet Healthcare was broadly in line with market expectations after it received decent response from investors for its ₹840.27 crore IPO.

“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 ₹340,” says Shivani Nyati, Head of Wealth, Swastika Investmart Ltd. 

The public issue, having a price band of ₹329-346, was subscribed 7.94 times, led by strong demand from non-institutional and institutional investors. The quota reserved for Qualified Institution buyers (QIBs) and non-institutional buyers (NIIs) were booked 13.72 times and 13.59 times, respectively. The portion for retail investors was subscribed 2.24 times.

The company had reserved about 50% of the offer for QIBs, 35% for retail investors, and 15% for NIIs. The lot size was 43 equity shares and in multiples thereafter for retail investors.

IPO of Blue Jet Healthcare had received 'subscribe' recommendation from most analysts, which was entirely an offer for sale of 2.42 crore shares by promoters Akshay Bansarilal Arora and Shiven Akshay Arora.

Incorporated in December 1968, 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. Its core business includes three key product categories - contrast media intermediates, high-intensity sweeteners, and pharmaceutical intermediates and active pharmaceutical ingredients.

Ahead of the IPO, Blue Jet Healthcare raised ₹252.08 crore from 22 anchor investors by allocating 72,85,548 equity shares at a price of Rs 346 per equity share. Out of the total allocation to anchor investors, 32,29,687 shares were allocated to 5 domestic mutual funds through a total of 8 schemes.

The anchor book saw participation from some ace global and domestic investors such as Government Pension Fund Global, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Nippon Life, Bandhan Mutual Fund, Aditya Birla Sun Life Insurance Company, HSBC Global, Edelweiss Trusteeship, Troo Capital, Societe Generale, M3 Investment, BNP Paribas Arbitrage, Singularity Growth Opportunities Fund, and Integrated Core Strategies (Asia).

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