Jupiter-Life-Line-Hospitals-Limited-IPO
With the healthcare industry being one of the booming sectors in India, investors are keen to explore Jupiter Life Line Hospitals Limited IPO. The hospital industry is a component of the overall healthcare sector and was valued at $61.79 billion in FY 2017. With the growing demand for quality healthcare in the country, this segment is expected to grow to approximately $132 billion by 2023 with a CAGR of about 16-17%.
Jupiter Life Line Hospitals Limited IPO will open for subscription from 6th September 2023 to 8th September 2023.
Here are all the important details of Jupiter Life Line Hospitals Limited, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.
The key details of Jupiter Life Line Hospitals Limited are as under.
The size of the IPO and different categories of the issue are:
| Category | Details |
| IPO Opening Date | 6th September 2023 |
| IPO Closing Date | 8th September 2023 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face value of shares | Re. 10 per share |
| IPO Price Band | Rs. 695 – Rs. 735 per share |
| IPO Size | Rs. 869 crores (1,18,24,163 shares) |
| Offer for Sale | Rs. 327 crores (44,50,000 shares) |
| Fresh Issue | Rs. 542 crores (73,74,163 shares) |
The important dates for Jupiter Life Line Hospitals Limited IPO are highlighted below:
| Event | Date |
| Opening date | 6th September 2023 |
| Closing Date | 8th September 2023 |
| Allotment date | 13th September 2023 |
| Refund Date | 14th September 2023 |
| Share Credit Date | 15th September 2023 |
| Listing Date | 18th September 2023 |
Investors can subscribe to Jupiter Life Line Hospitals Limited shares in pre-defined lots. The details of the lot sizes for this IPO are mentioned below:
| Category | Details |
| Investments in lots | Minimum – 1 lot Maximum – 13 lots |
| Investment amount | Minimum – Rs. 13,900 – 14,700 Maximum – Rs. 1,91,100 |
| Shares | Minimum – 20 Maximum – 260 |
Here’s the summary of reservation for different applicant categories in this IPO:
| Category of Investor | Reservation Percentage |
| Retail Individual Investor | 35% |
| QIB (Qualified Institutional Buyer) | 50% |
| NII (Non-Institutional Bidders) | 15% |
This IPO is a combination of Offer for Sale and Fresh Issue. The objectives of the IPO are mentioned below,
Jupiter Life Line Hospitals Limited, established in 2002, is a prominent healthcare provider offering a wide range of specialized medical services in the Mumbai Metropolitan Area (MMR) and the western region in the country. It operates as a leading corporate healthcare service provider, specializing in quaternary care, and currently manages three hospitals under the “Jupiter” brand located in Thane, Pune, and Indore. These facilities collectively provide a total of 1,194 operational beds and employ a dedicated team of 1,306 doctors, including various specialities such as physicians and surgeons, as of March 31, 2023. The company has also initiated construction on a state-of-the-art multi-speciality hospital in Dombivli, Maharashtra, with plans to accommodate over 500 beds.
As per the CRISIL Report, Jupiter Life Line Hospitals stands out for its unique neuro-rehabilitation services offered through specialized robotic and computer-assisted centres at its Thane and Indore hospitals. Additionally, they operate a distinct multi-organ transplant centre in Thane, setting them apart from regional healthcare providers. All of Jupiter’s hospitals in Thane, Pune, and Indore have earned certification from the National Accreditation Board for Hospitals & Healthcare Providers (NABH) and accreditation in medical testing from the National Accreditation Board for Testing and Calibration Laboratories (NABL).
The company’s revenue from both inpatient and outpatient services is evenly distributed among its hospitals. In Fiscal 2023, Thane, Pune, and Indore hospitals contributed 54.18%, 34.03%, and 11.79%, respectively, to the total operational revenue.
Jupiter Life Line Hospitals Limited’s financials are given in the table below:
| Year | Total Assets (Rs. in cr) | Revenue from Operations (Rs. in cr) | Profit After Tax (Rs. in cr) | Basic EPS | Return on Net Worth |
| Mar-2023 | 985 | 893 | 73 | Rs.13.95 | 20.03% |
| Mar-2022 | 909 | 733 | 51 | Rs.10.05 | 17.73% |
| Mar-2021 | 789 | 486 | (2) | (Rs.0.45) | (0.93%) |
(Source: RHP)
Some of the key strengths of Jupiter Life Line Hospitals Limited IPO that investors can take note of are
| Category | Details |
| Business model | Jupiter Hospitals boasts of being a strong brand name as a multi-speciality tertiary and quaternary healthcare provider with clinical expertise, and a diverse revenue mix.The company has a proven track record in both operations and finance and maintains a diversified revenue stream.Operating on an ‘all-hub-no-spoke’ model, the focus is on top-quality patient care, backed by modern infrastructure and technology and the ability to attract and retain skilled healthcare professionals. |
| Other merits | They are led by a capable management team, the organisation prioritises environmental, social, and governance (ESG) initiatives and has a strategic plan which includes expanding into Western markets |
Here are some of the risks that investors of Jupiter Life Line Hospitals Limited IPO should know:
| Category | Details |
| Business viability and profitability | The hospital’s reliance on the Thane location makes it vulnerable to revenue fluctuations due to economic or political changes in western India, specifically in Thane.Difficulties in recruiting and retaining healthcare professionals may disrupt operations while passing on costs for equipment, manpower, and infrastructure maintenance to patients could present financial challenges. |
| Other concerns | The company may be affected by adverse orders resulting from public interest litigations related to the land on which the Thane Hospital is situated.The company must contend with potential regulatory shifts in the healthcare sector and has to compete with a mix of large and small domestic players in the fragmented industry. |
As of September 4th, 2023, the grey market premium for the shares of Jupiter Life Line Hospitals Limited IPO is Rs. 180 as per market observers. This means the shares are expected to list at a premium of Rs. 180 per share over the listing cap price of Rs. 735.
Jupiter Life Line Hospitals Limited is a leading name in the hospital industry in the MMR. This hospital is a well-known name for providing quality health care in this region and is also increasing its presence across the western region. The company has shown huge financial growth over the past few years and also has one of the highest EBITDA margins among its listed peers. However, it is prudent for investors to consider the financial performance of the company with respect to its past performance as well as according to industry standards before making an investment decision.
Investors can invest in this IPO through the Fisdom app.
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