Blue Jet Healthcare lists at 10% premium on bourses; Should you hold or book profit? Blue Jet Healthcare shares listed at 9.82 % premium over IPO price on bourses amid weak domestic market. The share debuted at Rs 380 on the NSE and at Rs 359.90 on the BSE, as compared to the issue price of Rs 346. The investors have made a profit of Rs 34 per share as the scrip gave nearly 10% return to investors on the listing. “Blue Jet Healthcare made its debut on the stock markets today, by listing at Rs 380 per share, a premium of around 10% to its IPO price of Rs 346. The IPO was subscribed 7.95 times, which is a good subscription level. Blue Jet Healthcare is a manufacturer of contrast media intermediates and high-intensity sweeteners. The company has a strong competitive advantage due to its high entry barriers and long-term relationships with multinational customers. The company’s financial performance is also strong, with consistent revenue and profit growth in recent years. Overall, the listing of Blue Jet Healthcare was a success. The company’s strong fundamentals and good subscription levels were positive factors for this. Investors may hold it by keeping a stop loss at Rs 340,” said Shivani Nyati, Head of Wealth, Swastika Investmart. The IPO comprised an offer-for-sale (OFS), with promoters offloading 24,285,160 shares of Rs 2 aggregating up to Rs 840.27 crore. For potential investors, the bidding started at a minimum of 43 equity shares, with subsequent bids in multiple lots of 43 equity shares each. The minimum amount of investment required by retail investors was Rs 14,878.
Logistics, good or bad, are driven by the states and the commerce ministry has a LEADS (Logistics Ease Across Different States) report, based on perceptions. The 2023 version was released in December. Since states are heterogenous, in the reporting, they are divided into four groups—coastal, landlocked, north-east, and UTs. States that do well are called achievers. Nomenclature matters. Thus, states that are middling aren’t called average. They are called fast movers. States that are sub-par are called aspirers. Let me highlight coastal states, since 75% of export cargo is estimated to originate from them. Among coastal states, ones that do well are Andhra Pradesh, Gujarat, Karnataka, and Tamil Nadu. The ones that lag are Goa, Odisha, and West Bengal. While India’s logistics performance may have improved over time, that’s not true of every state. Some have slipped. Most states have a state-level logistics policy, including Goa and Odisha. West Bengal, bottom of the pecking order in the coastal category, doesn’t have one. To quote from LEADS 2023, “Looking ahead, the State (West Bengal) could benefit from formulating a State Logistics Master Plan and State Logistics Policy to drive efficiency improvements and facilitate investments within the logistics sector and undertake consultation with the logistics stakeholders for educating and informing them about the initiatives State is undertaking for the development and improvement of logistics sector.”
Logistics has been talked about for a long time and India has also focused on improving performance. We are now getting some precise data on measurement and quantification. That helps.
Bibek Debroy, chairman, EAC-PM. Views are personal.