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Jupiter Life Line Hospitals’ IPO subscribed 63.7x

Jupiter Life Line Hospitals’ IPO subscribed 63.7x
  • QIBs bid aggressively for the issue, which also received good interest from non-institutional and retail investors.
  • The net proceeds from the fresh issue will be used for loan payment and general corporate purposes.
Jupiter Life Line Hospitals’ ₹869 crore initial public offer (IPO) was subscribed 63.72 times the shares on offer, on the last day of the issue.

Qualified institutional buyer (QIBs) portion was subscribed 187 times, as they bid aggressively for the issue. Non-institutional investor portion was subscribed 34.7 times and retail portion was subscribed 7.7 times.

The company had undertaken a private placement of 1.67 million shares at ₹735 per equity share aggregating to ₹123 crore in a pre-IPO placement. Consequently, the fresh issue size was reduced from ₹665 crore to ₹542 crore.

It has set a price band at ₹695-735 per equity share.

Category

No of times subscribed

QIBs

187.32

Non institutional investors

34.75

Retail

7.73

Total

63.72


Source: BSE

The company intends to use net proceeds from the fresh issue towards re-payment or pre-payment, in full or part, of borrowings availed from banks and general corporate purposes.

ICICI Securities, Nuvama Wealth Management and JM Financial are the book running lead managers and KFin Technologies is the registrar to the offer. The shares are proposed to be listed on BSE and NSE.

About the company

The company has three hospitals with a total capacity of 1,194 hospital beds as of March 2023. It has been operating for over 15 years as a corporate quaternary care healthcare service provider with hospitals in Thane, Pune and Indore under the ‘Jupiter’ brand.

It’s also in the process of developing a multispecialty hospital in Dombivli, Maharashtra, with over 500 beds.

Its revenue from operations grew by 21.6% in FY23 and by 50.8% in FY22, as compared to the year before. Its net profit grew 43% in FY23 as compared to FY22, while it posted losses in FY21.

Its bed occupancy rate is lower than the majority of listed peers and it might have to offer services at discounted and competitive rates to increase them. Its inability to pass on high expenses of medical equipment, manpower cost and mre can impact its business.

Medical errors, malpractice, negligence, or misconduct by its staff or by third parties that provide products or services such as diagnostic tests, drugs, devices or equipment – can affect its operations. Its patients may contract serious communicable infections or diseases at its hospitals.

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