Blue Jet Healthcare
Book Building issueMainboard₹840 Cr issue
+4.02%
Listing gain over issue price
Issue size
₹840 Cr
1 lot at cut-off
₹14,878
Lot size
43shares
Open
25 Oct 2023
Close
27 Oct 2023
Allotment
30 Oct 2023
Listing
01 Nov 2023
Listing performance
Issue price
₹346
Listed at
₹359.90
Listing-day close
₹413.40
Latest price
₹475.55
Close on 23 Oct 2026
Listing gain
+4.02%
Return since issue
+37.44%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 25 Oct 2023 – 27 Oct 2023
- Listing date
- 01 Nov 2023
- Face value
- ₹2 per share
- Issue price
- ₹346 per share
- Lot size
- 43 shares
- Issue type
- Book Building issue
- Total issue size
- ₹840 Cr
- Market cap at offer price
- ₹6,002 Cr
- Promoter holding
- 99.99% → 86.00% pre-issue → post-issue
- ISIN
- INE0KBH01020
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Kotak Mahindra Capital Co.Ltd.
- Registered office
- 701, 702, 7th Floor, Bhumiraj Costarica, Sector 18, Sanpada, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 72,85,548 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 43 shares per lot, in multiples, at ₹346
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 43 | ₹14,878 |
| Retail (max) | 13 | 559 | ₹1,93,414 |
| S-HNI (min) | 14 | 602 | ₹2,08,292 |
| S-HNI (max) | 67 | 2,881 | ₹9,96,826 |
| B-HNI (min) | 68 | 2,924 | ₹10,11,704 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
72,85,548
Anchor portion
₹252 Cr
at ₹346 per share
Valuation and performance
Valuation at offer price
₹346 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 9.23 | — |
| P/E (×) | 37.49 | — |
| Market cap | — | ₹6,002 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 23.48%
- ROCE
- 31.91%
- PAT margin
- 22.27%
- NAV per share
- ₹39.29
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Blue Jet Healthcare
Blue Jet Healthcare Limited, originally incorporated as 'Jet Chemicals Private Limited' on December 7, 1968, was renamed to 'Blue Jet Healthcare Limited' effective May 18, 2022. The company operates a contract development and manufacturing organization (CDMO) business, developing and supplying speciality pharmaceutical and healthcare ingredients and intermediates. It has specialized chemistry capabilities in contrast media intermediates and high-intensity sweeteners. The company supplies a critical starting intermediate and several advanced intermediates to three of the largest contrast media manufacturers globally (GE Healthcare AS, Guerbet Group, and Bracco Imaging S.p.A), and supplies high-intensity sweeteners to multi-national companies including Colgate Palmolive (India) Limited and Unilever. As of June 30, 2023, the company operates three manufacturing facilities in Maharashtra with an aggregate annual production capacity of 1,020.90 KL.
Company Analysis
from RHPBlue Jet Healthcare Limited develops and supplies speciality pharmaceutical and healthcare ingredients and intermediates under a contract development and manufacturing organization business model, with specialized capabilities in contrast media intermediates and high-intensity sweeteners.
Blue Jet Healthcare Limited, originally incorporated as 'Jet Chemicals Private Limited' on December 7, 1968, was renamed to 'Blue Jet Healthcare Limited' effective May 18, 2022. The company operates a contract development and manufacturing organization (CDMO) business, developing and supplying speciality pharmaceutical and healthcare ingredients and intermediates. It has specialized chemistry capabilities in contrast media intermediates and high-intensity sweeteners. The company supplies a critical starting intermediate and several advanced intermediates to three of the largest contrast media manufacturers globally (GE Healthcare AS, Guerbet Group, and Bracco Imaging S.p.A), and supplies high-intensity sweeteners to multi-national companies including Colgate Palmolive (India) Limited and Unilever. As of June 30, 2023, the company operates three manufacturing facilities in Maharashtra with an aggregate annual production capacity of 1,020.90 KL.
specialty pharmaceuticalspharmaceutical intermediateshealthcare ingredientscontract development and manufacturingcontrast media manufacturinghigh-intensity sweeteners
Objects of the Issue
- Achieve the benefits of listing the Equity Shares on the Stock Exchanges and carry out the Offer for Sale of up to 24,285,160 Equity Shares by the Selling Shareholders. The Selling Shareholders will be entitled to the entire proceeds of the Offer after deducting the Offer expenses and relevant taxes thereon. Our Company will not receive any proceeds from the Offer. p.19
- General corporate purposes and listing benefits p.103
- No proceeds to company from Offer for Sale p.55
- —
Issue Structure
- Total Issue
- Up to ₹[●] million
- Fresh Issue
- Not Applicable
- Offer for Sale
- Up to 24,285,160 Equity Shares of ₹2 each aggregating up to ₹[●] million
- Price Band
- Floor Price ₹[●] per Equity Share; Cap Price ₹[●] per Equity Share
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹2 each
Business Model
The company operates as a contract development and manufacturing organization (CDMO), earning revenue from the sale of speciality pharmaceutical and healthcare ingredients and intermediates. Revenue is generated through three main business segments: contrast media intermediates (70.57% of revenue in FY2023), high-intensity sweeteners (24.48% of revenue in FY2023), and pharma intermediates and API (4.73% of revenue in FY2023). The company supplies products to a concentrated customer base with long-term contracts ranging from one to five years with options for renewal.
Business Segments
Supplies critical starting intermediate and several advanced intermediates to three of the largest contrast media manufacturers in the world, including GE Healthcare AS, Guerbet Group, and Bracco Imaging S.p.A.
Supplies high-intensity sweeteners to several multi-national companies for use in oral care and non-alcoholic beverages.
Supplies pharmaceutical intermediates and active pharmaceutical ingredients.
Manufactures contrast media intermediates used in medical imaging contrast agents
Manufactures high-intensity sweeteners for industrial use
Manufactures pharmaceutical intermediates and active pharmaceutical ingredients
Manufactures critical starting intermediate and advanced intermediates for iodinated and gadolinium-based contrast media used in X-ray, CT and MRI diagnostic imaging. Supplies directly to three of the four largest global contrast media manufacturers (GE Healthcare AS, Guerbet Group, Bracco Imaging S.p.A). Commercialized portfolio comprises 19 products as of June 30, 2023.
Manufactures and markets saccharin and its salts (saccharin sodium, calcium saccharin, saccharin insoluble). Products used in oral care (toothpastes, mouthwashes), beverages, confectionery, pharmaceuticals, food supplements and animal feed. Over 300 customers globally including marquee customers Colgate-Palmolive, Unilever, Prinova US LLC, MMAG Co. Ltd. Portfolio comprises 4 products as of June 30, 2023.
CDMO providing pharma intermediates under contract manufacturing model to innovator pharmaceutical companies for new chemical entities (NCEs) and multi-national generic pharmaceutical companies in chronic therapeutic areas including cardiovascular system, oncology, and central nervous system. Commercialized portfolio comprises 20 products as of June 30, 2023, including 8 under CDMO model.
Manufacturing of saccharin and its salts
Manufacturing of contrast media intermediates including 5-NIPA (basic building block for contrast media)
Manufacturing of pharmaceutical intermediates and Active Pharmaceutical Ingredients
Manufactures critical starting intermediates and advanced intermediates used in medical imaging contrast agents for X-rays, CT scans, MRI, and ultrasound procedures. Supplies directly to three of the largest contrast media manufacturers globally: GE Healthcare AS, Guerbet Group, and Bracco Imaging S.p.A. Maintains long-term relationships ranging from 4 to 24 years. Portfolio comprises 19 commercialized products.
Manufactures saccharin and its salts with backward integration from key starting materials for environmental sustainability and zero by-products. Used in table-top sweeteners, oral care products (toothpastes, mouthwashes), beverages (soft drinks), confectionery, pharmaceuticals, food supplements, and animal feeds. Focus on marquee customers in oral care and non-alcoholic beverage markets.
CDMO activity focused on collaborating with innovator pharmaceutical companies and multi-national generic pharmaceutical companies by providing pharma intermediates serving as building blocks for APIs in chronic therapeutic areas (cardiovascular, oncology, CNS) including new chemical entities (NCEs). Engages customers early in drug development process.
Manufactures contrast media intermediates
Manufactures high-intensity sweeteners
Manufactures pharma intermediates and active pharmaceutical ingredients
SWOT Analysis
Strengths
- • Specialized chemistry capabilities in contrast media intermediates and high-intensity sweeteners with established customer base(p.18)
- • Critical supplier to three of the world's largest contrast media manufacturers with multi-year contracts(p.18)
- • Strong financial performance with revenue growth and profitability(p.20)
- • Long-term contracts with key customers ranging from one to five years with renewal options(p.35)
- • Backward integration enabling in-house manufacturing of key starting materials for high-intensity sweeteners(p.44)
- • Large manufacturer of contrast media intermediates in India with 75%+ export share of key intermediate(p.146)
- • Long-standing relationships with top three global contrast media manufacturers spanning 4-24 years(p.147)
- • More than 70% of sales backed by contracted volumes through annual and multi-year contracts(p.147)
- • Strong R&D capabilities recognized by DSIR with 100+ molecules developed and 40+ commercialized(p.147)
- • US-FDA establishment inspection report received for Unit II facility in November 2019(p.148)
- • Experienced management team with decades of combined experience in business operations and pharmaceutical industry(p.148)
- • Diversified product portfolio spanning multiple chemical sectors(p.176)
- • Long operational history and established market presence(p.177)
- • Multiple manufacturing facilities with capacity expansion(p.177)
- • US FDA inspection and quality certifications(p.177)
- • ISO quality management and environmental certifications(p.177)
- • Strong backward integration in saccharin production(p.270)
- • Long-term customer relationships with major pharmaceutical manufacturers(p.270)
- • Significant export market position in contrast media intermediates(p.270)
- • WHO certification and FDA registration of manufacturing facilities(p.271)
- • Substantial increase in production capacity to meet customer demand(p.274)
Weaknesses
- • High customer concentration with largest customer accounting for 63.36% of revenue(p.34)
- • Reliance on select group of customers may constrain ability to negotiate favorable terms(p.35)
- • All manufacturing facilities concentrated in one state (Maharashtra)(p.45)
- • Leasehold land arrangements with ongoing compliance requirements and no guaranteed renewal(p.41)
- • Missing corporate records and regulatory filings from 1972-2008 period(p.38)
- • Delayed filing of consolidated financial statements for FY 2020(p.39)
- • Trademark not owned by company but leased from promoter with termination rights(p.43)
- • High employee attrition averaging 16.97% annually(p.38)
- • Heavy customer concentration with largest customer accounting for 63.36% of revenue in FY2023(p.161)
- • Dependence on limited number of raw material suppliers with top three suppliers representing 53.04% of COGS in FY2023(p.159)
- • Declining profit margins with EBITDA margin declining from 41.30% in FY2021 to 30.39% in FY2023(p.145)
- • Pharma intermediates and API business declining with revenue falling from ₹417.67 million in FY2021 to ₹339.84 million in FY2023(p.151)
- • Significant capital expenditure required to expand capacity with Unit IV expected to come online in FY2025(p.149)
- • Historical loan defaults to multiple banks(p.178)
- • Trademark dependency on promoter without ownership(p.186)
- • Significant concentration of shareholding among promoters(p.200)
- • Missing corporate records from historical periods(p.176)
- • Non-compliance with working capital return filing requirements(p.223)
- • Heavy dependence on limited number of customers for significant revenue(p.255)
- • Asset titles held in names of other entities pending transfer(p.228)
- • Lease assets held in names of other entities pending transfer(p.232)
- • Income tax search operations conducted on company premises(p.246)
- • Declining EBITDA margins despite revenue growth(p.272)
Opportunities
- • Growth in global contrast media formulation market forecasted at 6-8% CAGR through 2025(p.18)
- • High-intensity sweetener market growth with end products expected to grow at 3-8% CAGR through 2026(p.18)
- • Expansion of production capacity through Unit III expansion and Unit IV commissioning(p.37)
- • Strategy to commercialize new products with eight products commercialized in FY 2023(p.36)
- • Opportunity to expand pharma intermediates and API business through dedicated manufacturing blocks at Unit IV(p.37)
- • Global contrast media market expected to grow at 6-8% CAGR between 2023-2025 led by volume growth(p.146)
- • High-intensity sweetener market expected to grow at 6-7% CAGR with saccharine representing 12-14% of market(p.128)
- • CDMO market opportunity driven by outsourcing trend and de-risking dependence on China(p.149)
- • India positioned as leading destination for CDMO services due to proven credentials and government support(p.136)
- • Forward integration strategy to manufacture key starting materials in-house by FY2024(p.159)
- • Capacity expansion through greenfield acquisition(p.177)
- • Semi-automated manufacturing capability for contrast media(p.177)
- • Merger integration synergies from Blue Circle Organics acquisition(p.177)
- • Strong profitability and cash generation(p.214)
- • Growth in global contrast media market at 6-8% CAGR(p.270)
- • Planned expansion of manufacturing capacity across units(p.274)
- • Forward integration into higher value-chain contrast media products(p.274)
- • Acquisition and development of Unit IV greenfield facility for pharma intermediates(p.274)
- • Growth opportunities in pharma intermediates and API business with higher margins(p.274)
Threats
- • Significant dependence on Europe for 74.49% of revenue subject to regulated market risks(p.35)
- • Risk of customer backward integration or discontinuation of purchases(p.35)
- • No exclusivity arrangements with customers creating competition risk(p.35)
- • Dependence on limited raw material suppliers with three largest suppliers accounting for 53.04% of COGS in FY 2023(p.43)
- • Significant foreign exchange exposure with 85.76% of FY 2023 revenue in foreign currencies(p.44)
- • Manufacturing facility fire incident in June 2023 resulting in injury and death with ongoing insurance claims(p.47)
- • Regulatory approvals required from international agencies with no assurance of timely renewal(p.47)
- • Product shelf life of 2-5 years creating inventory obsolescence risk(p.42)
- • Counterparty credit risk with trade receivables of ₹2,246.87 million as of June 30, 2023(p.40)
- • Global contrast media market faced decline post MAT June 2021 due to supply uncertainty and pricing pressure(p.120)
- • Dependence on three largest contrast media manufacturers who represent significant portion of revenue concentration(p.143)
- • Global contrast media market highly concentrated with four players controlling approximately 75% of market(p.125)
- • Raw material suppliers concentrated in China, Norway and India with vulnerability to geopolitical risks(p.159)
- • Regulatory compliance requirements and potential manufacturing or quality control problems could damage reputation(p.34)
- • Extensive regulatory compliance requirements across chemicals, pharmaceuticals, and environmental sectors(p.166)
- • Environmental and waste management regulatory obligations(p.168)
- • Labour law compliance and employment regulation burden(p.169)
- • Foreign trade restrictions and licensing requirements(p.170)
- • Potential income tax disputes and compliance exposure(p.219)
- • Heavy reliance on imported raw materials from limited suppliers(p.274)
- • Exposure to raw material price fluctuations and foreign exchange risk(p.274)
- • Significant impact from COVID-19 pandemic on supply chain and operations(p.275)
- • Regulatory compliance requirements and FDA inspections(p.275)
- • Highly concentrated contrast media market dominated by four major players(p.270)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Akshay Bansarilal Arora | Promoter | 79.58% | — |
| Shiven Akshay Arora | Promoter | 14.37% | — |
| Archana Akshay Arora | Promoter | 6.05% | — |
| Akshay Bansarilal Arora | Promoter | 79.58% | — |
| Shiven Akshay Arora | Promoter | 14.37% | — |
| Archana Akshay Arora | Promoter | 6.05% | — |
| Akshay Bansarilal Arora | Promoter | — | — |
| Akshay Bansarilal Arora | Promoter | 79.58% | — |
| Shiven Akshay Arora | Promoter | 14.37% | — |
| Archana Akshay Arora | Promoter | 6.05% | — |
| Akshay Arora | Promoter | 79.58% | — |
| Shiven Arora | Promoter | 14.37% | — |
| Archana Arora | Promoter/Promoter Group | 6.05% | — |
| Akshay Bansarilal Arora | Promoter | — | — |
| Shiven Akshay Arora | Promoter | — | — |
| Akshay Bansarilal Arora | Selling Shareholder | — | — |
| Shiven Akshay Arora | Selling Shareholder | — | — |
Leadership
Akshay Bansarilal Arora · Chairman
Ganesh Karuppannan · Chief Financial Officer
Sweta Poddar · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Blue Jet Healthcare IPO FAQs
What is the lot size of Blue Jet Healthcare IPO?
The minimum lot size of Blue Jet Healthcare IPO is 43 shares. One lot costs ₹14,878 at the cut-off price.
When does Blue Jet Healthcare IPO open and close?
Blue Jet Healthcare IPO opened for subscription on 25 Oct 2023 and closed on 27 Oct 2023.
What is the listing date of Blue Jet Healthcare IPO?
Blue Jet Healthcare IPO listed on 01 Nov 2023.