Blue Jet Healthcare IPO: Five customers drive 76% of company's revenue

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₹329 to ₹346 per equity share with a total lot size of 43 shares. The total IPO size is ₹840 crore, which is completely an offer for sale (OFS). Blue Jet Healthcare is a specialty pharmaceutical and healthcare ingredient and intermediate company, offering niche products targeted towards innovator pharmaceutical companies and multi-national generic pharmaceutical companies.

Established in 1968, the company has evolved its business model into a Contract Development and Manufacturing Organization (CDMO), featuring specialised chemistry expertise in contrast media intermediates and high-intensity sweeteners. The company's operations are primarily categorised into these product segments: contrast media intermediates, high-intensity sweeteners, pharma intermediates, and active pharmaceutical ingredients (APIs). In FY22, the bulk of its revenue, approximately 70%, was generated from contrast media intermediates, with 23.27% coming from high-intensity sweeteners and 6.08% from pharma intermediates and APIs.

Furthermore, in terms of profit after tax (PAT), the company demonstrated improvement, with a net profit of ₹181.59 crore in FY22, representing an improvement from ₹135 crore in FY21 and ₹144 crore in FY20, according to the company's DRHP report. In FY22, the company generated ₹560 crore in revenue from 10 large customers, constituting a significant 84.06% of its total revenue. Among these top ten, the five large customers alone contributed ₹516 crore, amounting to approximately 76% of the total revenue.