The initial public offering (IPO) of Jupiter Life Line Hospitals Ltd opened for subscription on Wednesday, 6 September 2023. The Mumbai-based multi-specialty, tertiary, and quaternary healthcare service provider aims to raise Rs 869.08 through the public issue at the upper price band.
The Jupiter Life Line Hospitals IPO comprises a fresh issuance of shares worth Rs 542 crore and an offer-for-sale (OFS) of shares worth Rs 327.08 crore by selling including the promoter group.
The price band for the issue has been fixed at Rs 695-735 per share, and the offer will close on Friday, September 8.
The company will determine the basis of allotment on 13 September and start refunds on 14 September. The shares will be credited into the demat accounts of eligible allottees on 15 September.
The stock is expected to be listed on the NSE and BSE on 18 September.
The lot size for the IPO is 20 shares. Retail investors need a minimum investment amount of Rs 14,700 to apply for the issue.
As of 2:00 PM on 6 September, the IPO had been subscribed 0.48 times in total. Retail investors subscribed 0.69 times to the portion, qualified institutional investors (QIBs) subscribed 0.00 times, and non-institutional investors (NIIs) subscribed 0.63 times.
Ahead of the IPO, Jupiter Life Line Hospitals raised Rs 261 crore from anchor investors on Tuesday.
Jupiter Life Line Hospitals proposes to utilise the funds from the fresh issue to retire debt and for general corporate purposes.
Jupiter Life Line Hospitals is one of the major multi-specialty tertiary and quaternary healthcare providers in the Mumbai Metropolitan Area (MMR) and western region of India, with a total bed capacity of 1,194 hospital beds across three hospitals as of 31 March. It currently runs three hospitals in Thane, Pune, and Indore under the "Jupiter" brand. The company is developing a multispecialty hospital in Dombivli, Maharashtra, which is likely to accommodate over 500 beds.
Grey Market Premium
Jupiter Life Line Hospitals IPO was commanding a premium of Rs 215 in the grey market on 6 September, according to IPOWatch.in.
"We believe that Jupiter Life Line Hospitals is a well-positioned company with good growth prospects. The P/E (price-earnings) valuation of the IPO is around 52.68 times, which is in line with the industry’s average," said Anubhuti Mishra, Equity Research Analyst at Swastika Investmart. She recommended investors to ‘Subscribe’ to the IPO for the long term.
However, Mishra added that there are some risks to consider, such as the high level of competition in the healthcare industry, the company’s regional concentration, and its relatively high expenses.
"Additionally, the occupancy rate of its hospitals is lower than that of its listed peers. However, the company is working to improve this metric," she said.