Blue Jet Healthcare IPO Closing Subscription Levels

The IPO of Blue Jet Healthcare Ltd closed for subscription on 27th October 2023. It has a face value of ₹2 per share and the price band for the book building IPO was fixed in the range of ₹329 to ₹346. The final price will be discovered within this band through the process of book building. The entire IPO of Blue Jet Healthcare Ltd will be an offer for sale (OFS) with no fresh issue component in the IPO. 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 OFS size of ₹840.27 crore. The promoter shareholders will be offering shares in the OFS. Since there is no fresh issue component, the OFS will also be the total IPO size. Thus, the overall IPO of Blue Jet Healthcare Ltd will also entail the sale of 2,42,85,160 shares, which at the upper price band of ₹346 per share will translate into a total IPO issue size of ₹840.27 crore.

How subscriptions evolved in the IPO

While the QIB portion and the HNI / NII portion picked up traction on the last day, the overall journey was quite slow in the first 2 days of the IPO with most of the action on the last day only. In fact, the QIB portion got fully subscribed only on the last day of the IPO while the HNI / NII portion got subscribed on the first day and the retail portion got fully subscribed on the second day. The overall IPO also got subscribed only on the second day of the IPO as can be seen in the table below. The table below captures the day-wise progress in IPO subscription.

As can be seen from the above table, the overall IPO got 7.95 times subscribed at the close of the third and final day of the IPO on 27th October 2023. The IPO had been kept open for 3 days in all. The subscription performance was led by QIBs in terms of oversubscription, followed closely by HNIs / NIIs and after a large gap by the Retail investors in that order.

Rapid update on the overall IPO response

The IPO saw fairly steady and tepid flows on Day-1 and Day-2 of the IPO but closed with relatively modest subscription numbers at the close of Day-3, which was the last day of the IPO. In fact, the company got fully subscribed only on the second and penultimate day of the IPO, with only the HNI / NII portion getting fully subscribed on the first day of the IPO. As per the combined bid details put out by the BSE at the close of Day-3, Blue Jet Healthcare Ltd IPO was subscribed 7.95X overall, with best demand coming from the QIB segment followed by the HNI / NII segment. The response of the retail segment was relatively tepid I comparison. In fact, the institutional segment and the HNI / NII segments saw some very good traction on the last day. The HNI portion did do well and a lot of the surge of funding applications and corporate applications did come in on the last day of the IPO. Retail portion was relatively timid, although it was fully subscribed on Day-2 of the IPO itself. Firstly, let us look at the details of overall allocation.

The QIB shares are at a gross level and the anchor portion was carved out of this QIB portion, as we shall see subsequently in the subscription of the anchor allocation as part of the QIB portion. Having understood the allocation of shares across various categories, let us quickly look at how the subscription data played out for the IPO at an overall level and at a more granular level.

As of close of 27th October 2023, out of the 170.00 lakh shares on offer in the IPO, Blue Jet Healthcare Ltd saw bids for 1,351.86 lakh shares. This implies an overall subscription of 7.95X overall. The granular break-up of subscriptions was in favour of the QIB investors followed by the HNI / NII investors and followed by the retail investors in that order. QIB bids and NII bids typically gather most of the momentum on the last day, and that was the case in this issue also in the case of QIB bids. Both the QIB and the NII bids picked momentum on the last day and added to its heft of the previous days. Here are the details of the category-wise subscription.

Subscription status of QIB Portion

On 23rd October 2023, Blue Jet Healthcare Ltd completed the bidding for its anchor allocation. There was a robust response as the anchor investors participated through the process of book building. A total of 72,85,548 shares were allotted to the anchor investors. The allocation was done at the upper IPO price band of ₹346 per share (including premium of ₹344 per share) which resulted in an overall allocation of ₹252.08 crore. The anchors absorbed 30% of the total issue size of ₹840.27 crore. This was adjusted to the QIB portion.

The QIB portion (net of anchor allocation as explained above) had a quota of 48.57 lakh shares of which it has got bids for 666.51 lakh shares at the close of Day-3, implying a subscription ratio of 13.72X for QIBs at the close of Day-3. QIB bids typically get bunched on the last day and while the heavy demand for the anchor placement had given an indication of the institutional appetite for the Blue Jet Healthcare Ltd IPO subscription overall, the actual demand did turn to be quite robust for the IPO.

Subscription status of HNI / NII Portion

The HNI portion got subscribed 13.59X (getting applications for 495.14 lakh shares against the quota of 36.43 lakh shares). That is a relatively strong response at the close of Day-3 largely because this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, come in on the last day of the IPO, and that was visible as the overall HNI / NII portion added to its heft on the last day of the IPO. Apart from the QIB portion, even HNIs saw good traction on the last day.

Now the NII/HNI portion is reported in two parts viz. bids below ₹10 lakhs (S-HNI) and bids above ₹10 lakhs (B-HNI). The bids above the ₹10 lakh category (B-HNIs) typically represents most of the major funding customers. If you break up the HNI portion, the above ₹10 lakh bid category got subscribed 15.65X while the below ₹10 lakh bid category (S-HNIs) got subscribed 9.48X. This is just for information and is already part of the overall HNI bids explained in the previous para.

Subscription status of Retail Individuals

The retail portion was subscribed just 2.24X at the close of Day-3, showing relatively strong appetite. It must be noted that retail allocation is 35% in this IPO. For retail investors; out of the 85.00 lakh shares on offer, valid bids were received for 190.21 lakh shares, which included bids for 160.47 lakh shares at the cut-off price. The IPO is priced in the band of (₹329 to ₹346 per share) and has closed for subscription as of the close of Friday, 27th October 2023.