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Blue Jet Healthcare Limited IPO Company Profile :

Blue Jet Healthcare Limited is a specialty pharmaceutical and healthcare ingredient and intermediate company, offering niche products targeted toward innovator pharmaceutical companies and multi-national generic pharmaceutical companies. Since its incorporation in 1968, the company has established a contract development and manufacturing organization (“CDMO”) business model with specialized chemistry capabilities in contrast to media intermediates and high-intensity sweeteners, on the back of strategic and early investments in research and development (“R&D”) and manufacturing infrastructure. The company has competencies and manufacturing capabilities in contrast to media intermediates and high-intensity sweeteners, including saccharin and its salts. The company manufactures a range of products in-house, including the key starting intermediate and advanced intermediates, which allows it to control its production process for consistent quality and cost-effectiveness. In the past three Financial Years, the company invoiced a total of more than 350customers in 35 countries. The company believes its “Collaboration, Development, Manufacturing” approach has been, and will continue to be, critical to its success and a key factor for growing our CDMO business.

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    Blue Jet Healthcare Limited IPO Details:

    IPO Open Date Not Disclosed
    IPO Close Date Not Disclosed
    Listing Date Not Disclosed
    Face Value ₹2 per share
    Price Not Disclosed
    Lot Size Not Disclosed
    Issue Size Not Disclosed
    Fresh Issue Not Applicable
    Offer for Sale 21,683,178 equity shares
    (aggregating up to ₹[.] cr)
    Issue Type Book Built Issue IPO
    Listing At BSE, NSE
    QIB Shares Offered Not more than 50% of the Offer
    NII (HNI) Shares Offered Not less than 15% of the Offer
    Retail Shares Offered Not less than 35% of the Offer
    Company Promoters Akshay Bansarilal Arora, Shiven Akshay Arora, and Archana Akshay Arora

    Blue Jet Healthcare Limited IPO Product Categories:

    • Contrast Media Intermediates:

      Contrast media are agents used in medical imaging to enhance the visibility of body tissues under X-rays, computed tomography (“CT”), magnetic resonance imaging (“MRI”), or ultrasound. The global contrast media formulation market had a market size of US $6.7billion in terms of moving annualturnover2425for March 2022. The market is expected to grow at a CAGR of 8-10% between the Financial Years 2022 and 2025, with growth expected to be primarily led by volume. It is dominated by four contrast media manufacturers, namely GEHealthcare, Guerbet, Bracco, and Bayer. The company supplies a critical starting intermediate and several advanced intermediates primarily to three of the largest contrast media manufacturers in the world, including GE Healthcare, Guerbet, and Bracco, directly.

    • High-intensity Sweeteners:

      High-intensity sweetener business involves the 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. The global high-intensity sweetener market was estimated to be between US$2.3 billion to US$2.4 billion in size, as of the calendar year 2021, comprising products such as sucralose, aspartame, saccharin and stevia, and neotame. As a result of the consistent quality of the company’s high-intensity sweeteners, it has become part of the select supplier base of several multi-national companies in the oral care and non-alcoholic beverage markets, such as Colgate Palmolive (India) Limited, Unilever, Prinova US LLC, and MMAG Co. Ltd, and many other international and domestic customers across all end product categories.

    • 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 by providing them with pharma intermediates that serve as building blocks for APIs in chronic therapeutic areas, such as the cardiovascular system (“CVS”), oncology and central nervous system (“CNS”), including new chemical entities (“NCEs”).

    Revenue from the products:

    Segment FY-22(in cr.) % FY-21(in cr.) % FY-20(in cr.) %
    Contrast media intermediates 477.83 70.64 353.58 71.57 416.59 78.72
    High-intensity sweeteners 157.48 23.28 98.72 19.98 87.80 16.59
    Pharma intermediates and API 41.15 6.08 41.76 8.45 24.79 4.68
    Total 676.46 100.00 494.06 100.00 529.18 100.00

    Blue Jet Healthcare Limited IPO Financial Analysis:

    Particulars FY-22(in cr.) FY-21(in cr.) FY-20(in cr.) CAGR
    Revenue from sale of products 676.78 494.21 529.51 8.5%
    other operating revenue 6.68 4.72 8.68  
    Cost of goods sold 287.45 169.45 210.41  
    Employee Cost 33.03 28.95 23.87
    Other expenses 113.71 94.46 90.18
    EBITDA 242.59 201.35 205.05 5.8%
    EBITDA margin% 35.84% 40.74% 38.72%  
    Depreciation 22.14 19.66 18.04
    Interest 3.3 5.3 7.36
    PBT 217.15 176.39 179.65 6.5%
    Total tax 61.63 48.87 49.16
    PAT 155.52 127.52 130.49 6.0%
    Dep./revenue% 3.27% 3.98% 3.41%
    Int./revenue% 0.49% 1.07% 1.39%

    Blue Jet Healthcare Limited IPO Strengths:

    • With more than two decades of experience in manufacturing contrast media intermediates, Blue Jet Healthcare Limited is a large manufacturer of contrast media intermediates in India. The contrast media market is a fast growing category, driven by a growing global population, especially in the age group aged 65 years and above, the growing prevalence of lifestyle diseases, rising healthcare expenditures, advancements in diagnostic technologies, increasing convenience of diagnostics services, and increasing demand for preventive healthcare.

    • As a CDMO, Blue Jet Healthcare Limited collaborates and not compete with the customers. With its research and development capabilities, process optimization, technical know-how, knowledge of the regulatory environment, track record of timely fulfilment of customer orders and ability to ramp up manufacturing capacities in close coordination with its key customers, the company has been able to establish long-standing customer relationships in each of the product categories where it operates. More than 60% of the total sales in each of the Financial Years 2020, 2021 and2022 were backed by contracted sales volumes, through both annual and multi-year contracts.

    • In the high-intensity sweetener category, the company’s ability to deliver quality products has enabled it to establish long-term relationships with several key customers, such as Colgate-Palmolive (India) Limited, Unilever, Prinova US LLC, and MMAG Co. Ltd, which have provided the company with a stable stream of revenue from operations.

    • Blue Jet Healthcare Limited’s business is driven by medium-to-long-term supply contracts with agreed-upon volume forecasts by its customers. Accordingly, the company is required to maintain adequate production capacity to meet the volume demands of its customers. The company’s capital expenditure cycles have been planned on the basis of such supply contracts and volume forecasts, which provides it with better predictability regarding its product offtake before it invests in any increases in production capacity, allowing it to optimize its capacity utilization and asset turnover ratio.

    Blue Jet Healthcare Limited IPO Risk factors:

    • Blue Jet Healthcare Limited’s business is dependent on the sale of its products to a few key customers, including those in Europe and the United States, which are regulated markets. The loss of one or more such customers, the deterioration of their financial condition or prospects, or a reduction in their demand for its products could adversely affect the company’s business, results of operations, financial condition, and cash flows.

    • A significant portion of the total revenue from operations is denominated in currencies other than Indian Rupees, due to which the company faces foreign exchange risks that could adversely affect its results of operations and cash flows.

    • Failure to adhere to contractually agreed timelines to deliver the products on a timely basis, or at all, may have the following consequences, which could adversely affect the company’s business, results of operations, and financial condition: (i) payments to the company for its products may be delayed; (ii)liquidated damages may become payable by ; (iii) performance guarantees may be invoked against the company; (iv)claims may be brought against the company for losses suffered as a result of its non-performance; (v) the clients may terminate the contracts; and (vi) the company’s reputation may be damaged.


    GO DIGIT General Insurance Limited IPO FAQ

    Ans.Blue Jet Healthcare Limited IPO will comprise fresh share issue and new offer share issue. The company aims to go public to accelerate its growth and expansion plan.

    Ans. The company will open for subscription on <>.

    Ans. The minimum lot size that investors can subscribe to is <> shares.

    Ans. The Blue Jet Healthcare Limited IPO listing date is <>.

    Ans. The minimum lot size for this upcoming IPO is <> shares.