Blue Jet Healthcare makes its debut with a 4% premium but falls short of anticipated grey market projections.

Pharma intermediates manufacturer Blue Jet Healthcare made its debut on the stock market on Wednesday, opening at a 4% premium compared to its issue price. Although the stock had a positive start, it fell short of the grey market’s expectations of a 7% premium.

Blue Jet Healthcare’s IPO, valued at ₹840 crore, was oversubscribed 7.9 times, indicating strong institutional interest. Qualified institutional buyers (QIBs) and non-institutional investors showed significant interest in the offering.

In recent times, several companies that went public experienced volatility in the stock market. IRM Energy and Updater Services, for example, saw their stock prices drop around 5% on their debut days. However, most other recent IPOs have performed well, providing positive returns for investors.

Here are the listing gains from a few recent public debuts:

– IRM Energy: -5%
– Plaza Wires: 48%
– Updater Services: -5.3%
– JSW Infra: 28.5%
– Yatra: -4%

Blue Jet Healthcare fixed the price band for its IPO at ₹329-346 per equity share. The offering is a complete offer-for-sale, meaning the company will not receive any proceeds from the sale of shares.

Established in 1968 as Jet Chemicals, Blue Jet Healthcare is primarily engaged in manufacturing contrast media intermediates, high-intensity sweeteners, salts, and active pharmaceutical ingredients (APIs). With over 100 developed products, of which 40 are commercialized, the company operates three manufacturing facilities in Maharashtra.

Analysts praise Blue Jet Healthcare’s presence in niche categories with high entry barriers. They are also impressed the company’s product development and process optimization capabilities. Furthermore, Blue Jet Healthcare has established relationships and multi-year contracts with multinational clients for both supply agreements and logistics management.

Market experts have differing opinions on the valuation of Blue Jet Healthcare. Anand Rathi believes the company is fairly priced, while Rajan Shinde from Mehta Equities sees potential for significant listing gains due to the company’s unique product segment and lack of immediate competitors. Both recommend subscribing to the IPO, with Mehta Equities emphasizing the need for a risk perspective.

With a market capitalization of ₹6,001 crore post-issuance of equity shares, Blue Jet Healthcare’s future looks promising. It remains to be seen how the stock performs in the coming days and if it can meet or exceed the expectations set the grey market.

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