Blue Jet Healthcare IPO gets green signal from Sebi. Details here


Blue Jet Healthcare has received market regulator Sebi’s approval to raise funds from an initial public offering (IPO). Blue Jet’s issue is entirely offer for sale (OFS), hence, the company will not receive any proceeds. The company filed for an IPO in September last year. Blue Jet offers niche products targeted toward innovator pharmaceutical companies and multinational generic pharmaceutical firms.

Blue Jet received its final observation letter on January 9 from Sebi. Kotak Mahindra Capital Company is the co-ordinating lead manager for the issue.

As per the draft prospectus, the IPO is purely an offer for sale (OFS) where selling shareholders will offload up to 21,683,178 equity shares. Of the total, promoter Akshay Bansarilal Arora will sell 18,366,311 equity shares, and Shiven Akshay Arora to sell 3,316,867 equity shares.

Book-running lead managers for the IPO are Kotak Mahindra Capital Company, ICICI Securities, and JP Morgan India. Link Intime India is the registrar of the offer.

Since the IPO is entirely OFS, the company will not receive any proceeds from the offer as all of it will go to the promoter-selling shareholder.

Incorporated in the year 1968 as Jet Chemicals by Late Shri BL Arora, Blue Jet Healthcare is promoted by its Executive Chairman; Akshay Bansarilal Arora. The company operates under the “Blue Jet” brand name and has competencies and manufacturing capabilities in contrast to media intermediates and high-intensity sweeteners, including saccharin and its salts as well as active pharmaceutical ingredients.

Saccharin is primarily used in table-top sweeteners, oral care products such as toothpastes and mouthwashes, beverages (primarily soft drinks), confectionary products (such as mints, candies, and bakery products), pharmaceutical products, food supplements, and animal feeds. Globally the high-intensity sweetener market potential stood at $2.4 billion and shows promise to grow between 3-8% CAGR between FY 2021-2025.

Its business model focuses on collaboration, development, and manufacturing of complex chemistry categories. Over the past 5 decades, it has developed over 100 products with over 40 products commercialized.

The company has continued to record growth in the past three fiscals. Total income climbed robustly to 702.9 crore in FY22 versus 507.8 crore in FY21 and 544 crore in FY20. PAT jumped to 181.59 crore in FY22 against 135.79 crore in FY21 and 144.96 crore in FY21.

Post IPO, the equity shares will be listed on BSE and NSE.

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