Blue Jet Healthcare IPO GMP (Grey Market Premium)

Blue Jet Healthcare IPO has a face value of ₹2 per share and the price band for the book built IPO has been fixed in the band of ₹329 to ₹346 per share. The final price will be discovered through the process of book building. The IPO of Blue Jet Healthcare Ltd is entirely an offer for sale (OFS), with no fresh issue component. The offer for sale (OFS) portion of the IPO comprises the sale of 2,42,85,160 shares (242.85 lakh shares approximately), which at the upper price band of ₹346 per share translates into an offer for sale (OFS) size of ₹840.27 crore. The entire OFS sale is by the promoters with Akshay Bansarilal Arora offering 183.66 lakh shares and Shiven Akshay Arora offering 59.19 lakh shares in the OFS. Since there is no fresh issue component, the total IPO will also entail the sale of 2,42,85,160 shares (242.85 lakh shares approximately), which at the upper price band of ₹346 per share will translate into a total IPO issue size of ₹840.27 crore

The company (Jet Blue Healthcare Ltd) was promoted by Akshay Bansarilal Arora, Shiven Akshay Arora, and Archana Akshay Arora. The promoter holding in the company stands at 100.00%, but post the OFS, the promoter stake will get diluted to 86%. The IPO has made allocations to all the three categories of investors, viz. QIB investors, HNI / NII investors and retail investors. The table below captures the gist of the allocation to various categories.

The stock of Blue Jet Healthcare Ltd will be listed on the IPO mainboard of NSE and also on the mainboard of the BSE.

About the Blue Jet Healthcare IPO GMP

The grey market price (GMP) trading normally starts about 4-5 days prior to IPO opening and continues till the listing date. In the case of Blue Jet Healthcare Ltd, we already have GMP data for the last 2 days, which should give a reasonable picture of the likely listing.

There are 2 factors that impact the GMP. Firstly, the market conditions have a deep impact on the GMP, especially the liquidity conditions in the market. Secondly, the extent of subscription for the IPO has a deep impact on the GMP as it is indicative of investor interest in the stock. GMP can also technically be in negative, which means the stock would list at a discount to the issue price.

There is one small point to remember here. The GMP is not an official price point, just a popular informal price point. However, in most cases, it has been observed to be a good informal gauge of demand and supply for the IPO. Hence it does give a broad idea of how the listing is likely to be and how the post-listing performance of the stock would be.

How has the GMP panned out in last few days

GMP tends to be a good mirror of the real stock story. More than the actual price, it is the GMP trend over time that gives insights about which direction the wind is blowing. Here is a quick GMP summary for Blue Jet Healthcare IPO for which the data is available.

In the above case, the GMP trend shows that the grey market premium has opened at around ₹95, but has since stayed at ₹22 for which GMP data is available. Of course, we have to await for the actual subscription numbers to flow in after the issue opens for subscription on 25th October 2023 and also watch the progress, as that would have a very significant impact on the GMP. In the past, stocks which got oversubscribed in the IPO also saw a very robust positive shift in the grey market pricing. For a start, Blue Jet Healthcare Ltd has shown good traction in the grey market.

If you consider the upper end of price band of the IPO of Blue Jet Healthcare Ltd at ₹346 per share as the indicative discovered price, then the likely listing price is being signalled at around ₹441 per share as per the GMP indicator on 20th October 2023. This is dynamic and keeps changing. One data point to track will be the subscription update on the stock as that would chart the GMP course.

The GMP of ₹95 on the upper end of the book built IPO price of ₹346 indicates a listing premium of a healthy 27.46% for Blue Jet Healthcare Ltd over the IPO issue price. That pre-supposes a listing price of approximately ₹441 per share, when Blue Jet Healthcare Ltd lists on 06th November 2023. Of course, these are purely approximations, so you must keep a margin of safety. One needs to observe the trend of GMP closely as that gives the best hints on listing status. Look at the time series trend instead of just the GMP absolute numbers.

How to apply for the Blue Jet Healthcare IPO

Let us first look at lot sizes. Lot size is the minimum number of shares that the investor has to put in as part of the IPO application. The lot size only applies for the IPO and once it is listed then it can be even traded in multiples of 1 share since it is a mainboard issue. Investors in the IPO can only invest in minimum lot size and in multiples thereof. In the case of Blue Jet Healthcare Ltd, the minimum lot size is 43 shares with upper band indicative value of ₹14,878. The table below captures the minimum and maximum lot sizes applicable for different categories of investors in the IPO of Blue Jet Healthcare Ltd.

It may be noted here that for the B-HNI category and for the QIB (qualified institutional buyer) category, there are no upper limits applicable.

The issue opens for subscription on 25th October 2023 and closes for subscription on 27th October 2023 (both days inclusive). The basis of allotment will be finalized on 01st November 2023 and the refunds will also be initiated on 01st November 2023. In addition, the demat credits are expected to happen on 03rd November 2023 and the stock will list on 06th November 2023 on the NSE and the BSE.