Jupiter Life Line Hospitals IPO: Check Issue Size, Date and Price Band
Introduction:
With a gamut of companies launching their Initial Public Offerings (IPOs) these days, investors are spoilt for choice. One such company – Jupiter Life Line Hospitals – plans to hit the D-street through its IPO on Wednesday, 6 September 2023. It plans to raise approximately Rs. 869 via a fresh issue and an offer for sale.
Continue reading to learn more about Jupiter Life Line Hospitals IPO and decide whether you should subscribe or not.
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About Jupiter Life Line Hospitals:
Incorporated in 2007, Jupiter Life Line Hospitals Limited is a leading multi-specialty advanced-level healthcare provider in Western India, specifically the Mumbai Metropolitan Region (MMR). Currently, the company is running three hospitals in Pune, Thane, and Indore.
As of March 2023, combined bed capacity across the three hospitals stood at 1,194. With more than 1,246 doctors, including specialists, surgeons, and physicians, the hospital chain has positioned itself as a prominent player in India’s healthcare industry.
The company is also developing a new hospital with state-of-the-art facilities in Dombivli, MMR. The upcoming healthcare facility is estimated to accommodate around 500 beds.
Strengths of Jupiter Life Line Hospitals:
- A robust business model with a special focus on providing quality healthcare facilities
- Backed by modern infrastructure and technological capabilities
- 15 years of experience in the industry
- Ability to hire and retain trained healthcare staff, including doctors, nurses, and MRs
- A good track record of operational and financial performance
- A qualified and experienced management team
- Undertaken various environmental, social, and ethical initiatives
Key Risks or Weaknesses Of Jupiter Life Line Hospitals:
- Lower bed occupancy rate than most listed peers
- A significant portion of the revenue comes from the Thane hospital
- Operates in a heavily regulated industry. The company has to maintain several permits, accreditations, and licenses
- High operational expenses are required to acquire healthcare equipment and infrastructure
- The inability to maintain the optimum number of doctors can impact the business
Financial Snapshot of Jupiter Life Line Hospitals:
The financials of Jupiter Life Line Hospitals Limited for the last three financial years are as follows. All data has been taken from the company’s Draft Red Herring Prospectus (DRHP) on the Securities and Exchange Board of India (SEBI) website dated 30 August 2023:
| Particulars | As of and for FY Ending March 31 | ||
| 2023 | 2022 | 2021 | |
| Share Capital | 57 | 51 | 51 |
| Net Worth | 364 | 288 | 246 |
| Total Borrowings | 469 | 495 | 426 |
| Revenue From Operations | 893 | 733 | 486 |
| EBITDA Adjusted | 212 | 157 | 71 |
| Profit After Tax | 73 | 51 | -2 |
| Earnings Per Share (Diluted) | 13 | 10 | 0 |
| Net Asset Value (In Rs/share) | 64 | 57 | 48 |
| Return on Net Worth | 20% | 18% | -0.90% |
*Amount in Crores
Below are a few takeaways from the financials of Jupiter Life Line Hospitals Ltd. as seen in the table above
- The net worth of the company has grown steadily during the last two financial years from Rs. 246 crores in FY21 to Rs. 364 crores in FY23
- The revenue growth has been phenomenal in the last two years, reflecting the potential of the healthcare industry. The advent of the pandemic has also contributed to this growth
- The total borrowings of the company have also increased from Rs. 426 crores in FY21 to Rs. 469 crores in FY23
- After incurring a loss in FY21, the company has made steady profits in the last two financial years
- The company has maintained an impressive return on net worth despite being a capital-intensive business
Details of the IPO:
The total issue size of Jupiter Life Line Hospitals IPO is estimated to be around Rs. 869.08 crores. It comprises a fresh issue of up to Rs. 542 crores and an offer for sale of up to Rs. 327.08 crores. 50% of the offer has been reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and the remaining 35% is for retail investors.
The IPO opens for public subscription on 6 September and closes on 8 September 2023. As a retail investor, you can subscribe for at least 20 shares (one lot) and in multiples thereof in the price band of Rs. 695 to Rs. 735 per share.
The table below summarises IPO details:
| IPO Date | 6 Sept to 8 Sept 2023 |
| Listing Date | 18-Sep-23 |
| Face Value | Rs. 10 per share |
| Price Band | Rs. 695 to Rs. 735 per share |
| Lot Size | 20 shares |
| Total Issue Size | 11,824,163 shares (aggregating up to Rs. 869.08 crores) |
| Fresh Issue | 7,374,163 shares (aggregating up to Rs. 542 crores) |
| Offer for Sale | 4,450,000 shares (aggregating up to Rs. 327.08 crores) |
| Issue Type | Book-built IPO |
The final verdict
Considering the robust growth of the company in the last two years and the potential that the healthcare industry has, it makes sense to subscribe to this IPO. Its shares also command a health grey market premium (GMP) in the unlisted markets. If you need a Demat account to subscribe, you can open it within a few minutes with Motilal Oswal.
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