Before subscribing to the Blue Jet Healthcare IPO, investors should be aware of these 10 major risks

 Before subscribing to the Blue Jet Healthcare IPO, investors should be aware of these 10 major risks

The subscription period for the initial public offering (IPO) of Blue Jet Healthcare began today (Wednesday, October 25) and ends on Friday, October 27. On Monday, October 23, the Blue Jet Healthcare initial public offering (IPO) collected 252.08 crore using an anchor book procedure in which 22 investors participated.

According to RHP, the Blue Jet Healthcare IPO is entirely an offer for sale (OFS) of 24,285,160 equity shares; there is no component for a new issuance. The 840.27 crore Blue Jet Healthcare IPO is sized.

Shiven Akshay Arora, Akshay Bansarilal Arora, as well as Archana & Akshay Arora are the organization's promoters. While Akshay Bansarilal Arora will sell approximately 18,366,311 equity shares, Shiven Akshay Arora will only sell up to 5,918,849 equity shares.

Blue Jet Healthcare's initial public offering (IPO) has set aside a maximum of 50% of the shares for qualified institutional buyers (QIB), a minimum of 15% for non-institutional investors (NII), and a minimum of 35% for retail investors.

The Blue Jet IPO's subscription status at 11:48 IST was 19%, with 29% of the retail part subscribed.

Also Read: GMP, subscription status, review, and other information for the Blue Jet Healthcare IPO. Do you want to apply or not?

In its Red-Herring Prospectus (RHP), the corporation cited the following significant risks:

Blue Jet IPO: Major Threats

The operations, finances, and cash flows of the firm might all be adversely affected by a drop in their demand for the company's goods, the loss of one or more of these customers, the deterioration of their financial status or prospects, or any one of these events.

Third, if new goods are not successfully released to the market on schedule, the company's operations, financial status, and future prospects will all suffer. Sales in Europe and the US, two controlled markets, account for a large portion of the company's operational revenue.

They did not submit their audited consolidated financial statements for the upcoming fiscal year, 2020, in a timely manner, and any delays in adhering to rules might harm their business.

Compliance issues, changes to environmental, health and safety, and labor legislation, as well as mishaps that result in civil or criminal penalties, might all have a negative impact on a company's operations, financial situation, and image.

Operating challenges, dilution, and other unfavorable outcomes might occur from investments in and acquisitions of other firms, assets, or technology.

Currently, the firm is eligible for several incentive programs. Any reduction in or ending of such initiatives might have an impact on its operational outcomes.

The firm emphasized that if it unintentionally violates the patents or intellectual property rights of others, it risked legal action, which might have a negative impact on its business and image.

If the firm engages in certain related party transactions in the regular course of business and is unable to guarantee that these transactions won't have a negative impact on its financial condition and operational outcomes.

The external share price of stock might be impacted by a decline in India's credit ratings.If inflation rises in India, the firm may not be able to pass on cost increases to customers proportionally, which might lead to a decline in earnings.

Changes in the exchange rate between the Indian Rupee and other currencies might have a detrimental effect on variations in the value of the firm's equity shares, regardless of the extent to which the company is performing.

Today's Blue Jet IPO GMP 

Today's Grey Market Premium (GMP) for the Blue Jet Healthcare IPO is +54, which is smaller than the +63 of the previous session. According to investorgain.com, this suggests that Blue Jet Healthcare's share price was trading at a premium of 54 on Wednesday.

The expected listing price of Blue Jet Healthcare shares was set at 400 per share, which is 15.61 percent more than the IPO price of 346. This was determined by taking into account the top end of the IPO pricing range and the existing premium on the grey market.

Based on gray market activity over the last nine sessions, today's IPO GMP is moving up, and a good listing is anticipated. The GMP ranges from 0 to 95, with 95 being the highest.

Investors' willingness to pay more than the issue price is indicated by the term "grey market premium."