Blue Jet Healthcare IPO Opens
On Wednesday, October 25, 2023, Blue Jet Healthcare, a pharmaceutical company based in Maharashtra, opened subscriptions for its initial public offering (IPO). The company intends to raise approximately ₹840 crore by pricing its IPO between ₹329 and ₹346 per share, taking into account the upper end of the price band.
The offer for sale (OFS) of up to 2.42 crore shares is the only thing that the IPO is. Shares will be offloaded by promoters Akshay and Shiven Arora in this OFS.
Anchor investors responded favorably to the IPO, contributing ₹252.08 crore from 22 of them on October 23. The Blue Jet Healthcare IPO’s grey market premium (GMP) has increased by more than 18% to ₹63, a sign of robust investor demand.
What is GMP?
The price at which a company’s shares trade in the black market prior to being listed on stock exchanges is known as the “grey market premium,” or GMP. It serves as a gauge of interest in the IPO and anticipated listing price.
Why is Blue Jet Healthcare IPO getting a good response?
According to analysts, there are several reasons why investors are responding favorably to the Blue Jet Healthcare IPO, including:
- The company has a strong track record of profitability and growth.
- The company has a diversified product portfolio, including APIs, intermediates, and finished dosage forms.
- The company has a strong presence in the global market, exporting its products to over 50 countries.
- The company is operating in a growing sector, the pharmaceutical sector.
Here are some key factors to consider before subscribing to the Blue Jet Healthcare IPO:
- Good commercial prospects: The company boasts a global consumer base and a varied product line. Healthy return ratios: The company has a strong track record of profitability and growth.
- Positive industry outlook: In the upcoming years, it is anticipated that the pharmaceutical and healthcare sectors would expand at a robust rate.
- OFS issue: The initial public offering (IPO) is only an OFS made by the promoters and current shareholders. This indicates that no new funding will be raised by the firm through the IPO.
Investors should carefully consider the company’s fundamentals and their own investment objectives before subscribing to the IPO.
Should you subscribe to the Blue Jet Healthcare IPO?
Analysts have mostly given a ‘Subscribe’ rating to the Blue Jet Healthcare IPO, considering the company’s strong business prospects, healthy return ratios, and promising industry outlook.
However, investors should do their own research before subscribing to any IPO. They should carefully read the company’s red herring prospectus (RHP) to understand the company’s business, financials, and risks.
Conclusion
The Blue Jet Healthcare IPO looks like a good investment opportunity for investors with a long-term investment horizon. The company has a strong track record of profitability and growth, and it is well-positioned to benefit from the growing demand for pharmaceuticals and healthcare products globally.