Blue Jet Healthcare IPO: Apply Oct 25-27, Expect 25% Return
Blue Jet Healthcare Limited is poised to offer its shares to the public through an Initial Public Offering (IPO) scheduled to open on October 25. In a strategic move, the company aims to raise a substantial sum of 840.27 crore through this IPO.
Retail investors keen to participate in Blue Jet Healthcare Limited’s IPO have the opportunity to submit their bids until October 27. This window offers retail investors a crucial timeframe to express their interest in acquiring shares of the company.
Following the successful closure of the subscription period, Blue Jet Healthcare Limited intends to list its shares on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on November 1. The listing date signifies when the company’s shares will be officially traded on these prominent stock exchanges, making them accessible to a broader spectrum of investors.
What is the Maximum and Minimum Amount That Can Be Invested?
For Blue Jet Healthcare Limited’s IPO, there are specific guidelines regarding the minimum and maximum amounts that retail investors can invest:
- Minimum Investment: Retail investors are required to apply for at least one lot of shares, which amounts to 43 shares.
- Maximum Investment: Retail investors have the option to bid for a maximum of 13 lots, which totals 559 shares.
Given the IPO’s price band set by the company at 329-346 per share, let’s break down the investment amounts for different scenarios:
- Minimum Investment: If a retail investor applies for 1 lot at the IPO’s upper price band of Rs 346 per share, they will need to invest Rs 14,878 (Rs 346 * 43 shares).
- Maximum Investment: If a retail investor applies for the maximum of 13 lots at the upper price band of Rs 346 per share, their investment would amount to Rs 193,414 (Rs 346 * 559 shares).
840.27 Crores Worth of New Shares Will Be Issued by the Company
Blue Jet Healthcare Limited’s IPO is structured as a fresh issue, with the company intending to issue new shares worth a total of 840.27 crores. This represents a significant capital infusion into the company and a means to raise funds for various corporate initiatives.
It is important to note that this IPO is comprised entirely of new shares, totaling 24,285,160 shares. In this issuance, there is no involvement of the company’s promoters or other existing investors selling their shares through an Offer for Sale (OFS). The entire offering consists of newly issued shares, making it an exclusive opportunity for investors to participate in the company’s growth by acquiring fresh equity in Blue Jet Healthcare Limited.
Retail Investors Are Given 35% of the Shares
In the IPO of IRM Energy Limited, the allocation of shares is structured as follows:
- Qualified Institutional Investors (QIB): 50% of the IPO has been reserved for Qualified Institutional Investors. These are typically large financial institutions such as mutual funds, insurance companies, and foreign institutional investors.
- Retail Investors: A significant portion, 35% of the IPO, has been specifically reserved for retail investors. Retail investors are individual investors who participate in the stock market, and this reserved portion is intended to encourage their participation.
- Non-Institutional Investors (NII): The remaining 15% of the IPO is designated for Non-Institutional Investors. Non-Institutional Investors can include high-net-worth individuals, corporate bodies, and other investors who do not fall under the category of qualified institutional investors.
You Can Expect a Return on Investment of 24.57%
Prior to its official listing, Blue Jet Healthcare Limited’s shares have demonstrated strong demand in the gray market, with a significant premium. The gray market price (GMP) for the company’s shares reached a premium of 24.57%, equivalent to Rs 85 per share. This heightened interest in the shares suggests a high level of anticipation among investors.
With this robust gray market performance in mind, there are expectations that the company’s shares may be listed at the upper end of the price band, which is Rs 346. Considering the gray market premium, the potential listing price could be as high as Rs 431 per share (346 + 85). This indicates that investors who secured shares in the IPO and were able to sell them at this premium in the gray market could realize a return on investment of 24.57%.
