Blue Jet Healthcare IPO Lists at 9.83% Premium and Continues to Rally

Listing day story of Blue Jet Healthcare IPO

Blue Jet Healthcare IPO had a very robust listing on 01st November 2023, listing at a smart premium of 9.83%, and rallying further from the listing price on the day of listing. While the closing price on 01st November 2023 was above the IPO issue price for the day, it also closed comfortably above the listing price and the issue price of the IPO. For the day, the Nifty closed 91 points lower while the Sensex closed a full 284 points lower. Both the Nifty and the Sensex stayed under pressure through the day and this performance by Blue Jet Healthcare Ltd  on the day of listing was appreciable in the light of the weariness in the overall market indices.

IPO subscription and pricing details

The stock had seen a modest subscription in the IPO. The subscription was 7.95X  overall and QIB subscription was at 13.72X. In addition, the retail portion had got subscribed 2.24X in the IPO while the HNI / NII portion also got a healthy subscription of 13.59X. Hence the listing was expected to be modest to strong for the day. However, while the listing was modest, the performance strength got reinforced during the trading day as the stock rallied by a full 8.75% from the listing price by the close of trade on 01st of November 2023. Let us also look at how the IPO was priced for Jet Blue Healthcare Ltd.

The IPO price was fixed at the upper end of the band at ₹346 which was anyways along expected lines considering the modest to strong subscription in the IPO. The price band for the IPO was ₹329 to ₹346 per share. On 01st November 2023, the stock of Blue Jet Healthcare Ltd listed on the NSE at a price of ₹380, a modest premium of 9.83% over the IPO issue price of ₹346 per share. On the BSE also, the stock listed at ₹359.90, a premium of 4.02% over the IPO issue price of ₹346 per share. Here is the Blue Jet Healthcare Ltd listing story on 01st of November 2023.

How the stock of Blue Jet Healthcare IPO closed on both exchanges

On the NSE, Blue Jet Healthcare Ltd closed on 01st of November 2023 at a price of ₹413.25. That is a first day closing premium of 19.44% on the issue price of ₹346 and also a premium of 8.75% on the listing price of ₹380. In fact, the listing price turned out to be just above the low price of the day and the stock traded almost for the entire trading day above the opening listing price. On the BSE also, the stock closed at ₹395.85. That represents a first day closing premium of 14.41% above the IPO issue price and also a premium of 9.99% above the listing price on the BSE. On both the exchanges, the stock listed strongly above the IPO issue price and also managed to close Day-1 after rallying higher. In fact, the opening price turned out to be very near to the low price of the day on the NSE. There were two  differences on the BSE. On the BSE, the opening price actually turned out to be the low price of the day while the closing price was actually the 10% upper circuit band for the day. The high price of the day exactly the closing price of the day, since the stock closed on 01st of November 2023 with buyers and no sellers at the 10% upper circuit.

Price volume story on the NSE

The table below captures the opening price discovery in the pre-open period on the NSE.

Data Source: NSE

Let us look at how the stock traversed on the National Stock Exchange (NSE) on 01st November 2023. On Day-1 of listing, Blue Jet Healthcare Ltd touched a high of ₹417.95 on the NSE and a low of ₹378. The premium to the listing price sustained through most part of the day. While the low price of the day was just below the IPO opening price, the stock of Blue Jet Healthcare Ltd closed the day just below the 10% upper circuit. Mainboard IPOs do not have an upper circuit of 5%, unlike SME IPOs since they trade in the normal equity segment and not in the trade to trade segment.

If you look at the range of prices, the stock opening price turned out to be very near to the low point of the day while the closing price of the day was just below the upper circuit of the day for the stock. For the listing day, the stock of Blue Jet Healthcare Ltd had an upper circuit price of ₹418 and a lower circuit price band of ₹342 per share. On Day-1 of listing, the Blue Jet Healthcare Ltd stock traded a total of 224.40 lakh shares on NSE amounting to value of ₹884.49 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers, with serious buying emerging towards the end. The stock, however, closed the day with pending sell orders of 20,835 shares on the NSE.

Price volume story on the BSE

Let us look at how the stock traversed on the Bombay Stock Exchange (BSE) on 01st November 2023. On Day-1 of listing, Blue Jet Healthcare Ltd touched a high of ₹395.85 on the BSE and a low of ₹359.90. The premium to the listing price sustained through most part of the day. While the low price of the day was well below the IPO opening price, the stock of Blue Jet Healthcare Ltd closed the day exactly at the high price of the day, which also marked the 10% upper circuit. Mainboard IPOs do not have an upper circuit of 5%, unlike SME IPOs since they trade in the normal equity segment and not in the trade to trade segment.

If you look at the range of prices, the stock opening price turned out to be much above the low point of the day while the closing price of the day was exactly at the upper circuit of the day for the stock. For the listing day, the stock of Blue Jet Healthcare Ltd had an upper circuit price of ₹395.85 and a lower circuit price band of ₹323.95 per share. On Day-1 of listing, the Blue Jet Healthcare Ltd stock traded a total of 23.09 lakh shares on BSE amounting to value of ₹90.73 crore during the day. The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers, with serious buying emerging towards the end. The stock closed the day with pending buy orders on the BSE.

Market capitalization, free float, and delivery volumes

While the volumes on the BSE were not as much as on the NSE, the trend was once again the same. The order book through the day showed a lot of strength and that almost sustained till the close of trading session. The sharp correction in the Nifty and the Sensex really did not deter the stock too much as it continued its up move. That makes it a rather attractive stock after the strong listing on Wednesday. On the NSE, out of the total 224.40 lakh shares traded during the first day of trading, the deliverable quantity represented 115.31 lakh shares or a deliverable percentage of 51.39% on the NSE, which is higher than the routine listing day median on the IPO mainboard.

That shows a lot of delivery action in the counter. Even on the BSE, out of the total 23.09 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 7.06 lakh shares representing total deliverable percentage of 30.59%, which is lower than the delivery ratio on the NSE, indicating a lot of speculation in the counter on BSE. Unlike the SME segment stocks, which are on T2T on the day of listing, the mainboard IPOs permit intraday trading even on the day of listing.

At the close of Day-1 of listing, Blue Jet Healthcare Ltd had a market capitalization of ₹6,866.63 crore with free-float market cap of ₹686.66 crore. Blue Jet Healthcare Ltd has issued capital of 1,734.65 lakh shares with a par value of ₹2 per share.