Mumbai-based healthcare services provider, Jupiter Life Line Hospitals, has initiated its initial public offering (IPO), becoming the second company this month to offer shares for subscription after Ratnaveer Precision Engineering. Here are 10 key details that potential investors should consider:
IPO Dates: The IPO opened for bidding on September 6, 2023, and is scheduled to close on September 8, 2023.
Price Range: The offer price is set in the range of Rs 695 to Rs 735 per share.
Fund Raising: The IPO comprises a fresh issuance of shares worth Rs 542 crore and an offer-for-sale (OFS) of 44.5 lakh shares by ten selling shareholders, including Devang Vasantlal Gandhi (HUF) and Devang Gandhi jointly with Neeta Gandhi. The company aims to raise Rs 869.08 crore at the upper price band.
Objectives of the Issue: The net proceeds from the fresh issue will primarily go towards debt reduction (Rs 510.4 crore), with the remainder allocated to general corporate purposes. As of March 2023, the company and its material subsidiary had total borrowings of Rs 476.4 crore.
Lot Size: Investors can bid for a minimum of 20 equity shares and in multiples of 20 shares thereafter. Retail investors can apply for a minimum of Rs 14,700 per lot (20 shares) and a maximum of Rs 1,91,100 for 260 shares.
Company Profile: Jupiter Life Line Hospitals operates under the Jupiter brand and is a multi-specialty tertiary and quaternary healthcare provider in the Mumbai Metropolitan Area (MMR) and western India. It currently manages three hospitals in Thane, Pune, and Indore, with a total bed capacity of 1,194 as of March 2023. Additionally, it is constructing a multi-specialty hospital in Dombivli, Maharashtra.
Financial Performance: The company turned profitable in FY 2022, with a profit of Rs 72.9 crore in FY 2023, a 42.6% increase from the previous year. The revenue from operations reached Rs 892.5 crore, and EBITDA rose to Rs 201.3 crore in the same period. Jupiter Hospitals boasts strong metrics, with an EBITDA margin of 22.55% and a net profit margin of 8.07% in FY 2023.
Promoters and Management: Promoters currently hold 49.79% of Jupiter Hospital’s shareholding. The company’s board includes Ajay Thakker as Chairman and Managing Director, Ankit Thakker as Executive Director and CEO, Vadapatra Raghavan as Non-Executive Director, and several independent directors.
Risk Factors: Some key risks include revenue dependence on the Thane hospital, concentration in western India, reliance on healthcare professionals, regulatory compliance, and cost management.
Listing Date: The basis of allotment for IPO shares will be finalized by September 13, and shares will be credited to demat accounts by September 15. Refunds for unsuccessful investors will be processed by September 14. Jupiter Hospital’s equity shares are set to debut on both the BSE and NSE on September 18, 2023.
The grey market suggests a premium of 29% over the upper price band of Rs 735 per share for IPO shares. However, this unofficial market should be considered with caution.
