The Blue Jet Healthcare IPO, valued at Rs 840.27 crores, is solely comprised of a book-built offering consisting of 2.43 crore shares for sale.

Bidding for the Blue Jet Healthcare IPO commenced on October 25, 2023, concluding on October 27, 2023, with allotment finalized by Monday, October 30, 2023. Subsequently, the shares were listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on November 1, 2023.

The price range for Blue Jet Healthcare's IPO is set at ₹329 to ₹346 per share. Retail investors need a minimum investment of ₹14,878 for a lot size of 43 shares. Qualified individual investors (sNII) require a minimum investment of ₹208,292 for 14 lots (602 shares), while qualified institutional investors (bNII) need ₹1,011,704 for 68 lots (2,924 shares).

Kotak Mahindra Capital Company Limited, ICICI Securities Limited, and J.P. Morgan India Private Limited serve as the book running lead managers for the Blue Jet Healthcare IPO, with Link Intime India Private Ltd appointed as the registrar for the issue.

Objective of IPO.

The offer is completely “offer for sale”.

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About Blue Jet Hospital Limited

A specialty pharmaceutical and healthcare ingredients and intermediates company, offering niche products targeted toward innovator pharmaceutical companies and multi-national generic pharmaceutical companies. Company believes in “Collaboration, Development, Manufacturing”.

Since 1968, company have established a contract development and manufacturing organization (“CDMO”) business model with specialized chemistry capabilities in contrast media intermediates and high intensity sweeteners, on the back of strategic and early investments in R&D and manufacturing infrastructure. The company has built a long-term customer base with innovator pharmaceutical companies and multi-national generic pharmaceutical companies, supported by committed multi-year contracts of up to five years.

Products:

Contrast Media Intermediates: 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: Involves development, manufacture and marketing of saccharin and its salts, which is backward integrated with the aim to ensure environmental sustainability with zero by-products and cost-effective production processes.

Pharma Intermediates and APIs: CDMO activity in the pharma intermediate and API business primarily focuses on collaborating with innovator pharmaceutical companies and multi-national generic pharmaceutical companies, providing them with pharma intermediates that serve as building blocks for APIs.

Contrast Media Intermediates: The global contrast media formulation market had a market size of US$5.9 billion in terms of moving annual turnover1 for June 2023. The market is expected to grow at a CAGR of 6-8% between the calendar years 2023 and 2025, with growth expected to be primarily led by volume. It is dominated by four contrast media manufacturers, namely GE Healthcare AS, Guerbet Group, Bracco Imaging S.p.A and Bayer AG. Contributing to approximately 70% of the global moving annual turnover.

High-intensity Sweeteners: The global high-intensity sweetener market was estimated to be between US$2.9 billion to US$3.0 billion in size, as of the calendar year 2023, comprising products such as sucralose, aspartame, saccharin, stevia and neotame. The following table sets forth the expected CAGR of the high-intensity sweetener end product markets between calendar years 2023 to 2026:

Pharma Intermediates and APIs: Two pharm emerging markets, namely Brazil and India, together form 3.83% of the global pharmaceuticals market. Both Brazil and India pharmaceutical markets are forecast to grow at 10-11% CAGR over MAT June 2023 – MAT June 2027, which is one of the fastest growth rates among the pharm emerging markets.

Risk Analysis.

• About 80% of the revenue comes from the top 10 customers. Among the products available, contrast media intermediaries hold the majority share in sales. It also depends upon a limited number of raw material suppliers and three largest suppliers are located in China, Norway and India, bringing in the foreign exchange risks.
• Apart from India, company is dependent on Europe and USA. Europe holds about 74% sales then India holds 14% followed by USA 4%. All these markets are extensively regulated by the government.
• The company acquired a greenfield manufacturing site (Unit IV) in Ambernath, Maharashtra in the Financial Year 2021 to build several multi-purpose blocks. In addition, it is also expanding the production capacity at the Unit III facility. This information is based on various assumptions.
• The company is exposed to counterparty credit risk and any delay in receiving payments or non-receipt of payments. Also manufacturing facilities, R&D facilities, and Registered Office are situated on leasehold lands.
• The trademark used by company is licensed to the company by Promoter, Akshay Bansarilal Arora, and is not owned by company.
• Inefficiency and cost ineffectiveness may affect the profitability of the company.