Jupiter Life Line IPO

The Grey Market Premium (GMP) for Jupiter Life Line Hospitals is today-click here.

The Jupiter Hospitals IPO is scheduled to launch on September 6th and will conclude on September 8th. This IPO aims to raise approximately ₹869 crores. It consists of a fresh issue of ₹542 crores and an offer for sale of up to 4,450,000 shares, each valued at ₹10.

The allocation breakdown is as follows:

• Retail investors are eligible for a 35% allocation.
• Qualified Institutional Buyers (QIBs) can receive up to 50% of the allocation.
• High Net Worth Individuals (HNIs) have an allocation of 15%.

What does Jupiter Life Line Hospitals do?

The company operating hospitals under the Jupiter brand is recognized as a prominent multi-specialty tertiary and quaternary healthcare provider in the Mumbai Metropolitan Area (MMR) and the western region of India. As of March 2023, it boasts a total bed capacity of 1,194 across three hospitals.

These hospitals are located in Thane, Pune, and Indore and are supported by a dedicated team of 1,306 doctors, including specialists, physicians, and surgeons. Furthermore, the company has initiated the construction of a new multi-specialty hospital in Dombivli, Maharashtra, with plans for over 500 beds. Construction for this facility commenced in April 2023.

In terms of performance, the company has demonstrated significant growth. The average occupancy rate has improved consistently, reaching 62.61 percent at the end of March FY23, compared to 53.96 percent in the preceding year. Additionally, the average revenue per occupied bed (APROB) increased to Rs 50,990 in FY23, up from Rs 48,711 in FY22.

Operationally, the company has seen robust growth in both in-patient and out-patient volumes, achieving a compound annual growth rate (CAGR) of over 30 percent from FY21 to FY23. This underscores its position as a key player in the healthcare sector in the MMR and western region of India.

Industry Overview

The healthcare sector in India encompasses both government and private providers, offering a range of inpatient (IPD) and outpatient (OPD) services. However, the healthcare landscape in India predominantly leans towards the private sector for both IPD and OPD treatments. This is primarily attributed to the limited healthcare expenditure by the government and the strain on the existing state health infrastructure.

The share of treatments in terms of value provided by private healthcare providers is on an upward trajectory, expected to rise from 62% in FY17 to nearly 73% by FY27. Although there was a slight decline in this share in FY21, the overall trend points towards a growing dominance of private players in the healthcare industry. This skew towards private providers is driven by their robust expansion strategies and increasing reliance on private healthcare facilities, especially in the absence of a fully developed government healthcare infrastructure. This trend is likely to continue until government investments and infrastructure catch up with the rising healthcare demand.(resourse)

Here are the Jupiter Hospitals IPO details:

• Total IPO Size (Rs cr): ₹869
• Offer for Sale (Rs cr): ₹327
• Fresh Issue (Rs cr): ₹542
• Price Band (Rs): ₹695-735
• Subscription Dates: September 6-8, 2023
• Face Value: ₹10 Per Equity Share
• IPO Listing on: BSE & NSE
• Retail Quota: 35%
• QIB Quota: 50%
• NII Quota: 15%
• Discount: N/A
• DRHP Draft Prospectus: Click Here
• RHP Draft Prospectus: Click Here
• Purpose of Issue:
• Repayment/Pre-payment of Borrowings: The funds raised from the IPO will be used to repay or pre-pay borrowings that the company and its Material Subsidiary have availed from banks. This is a step towards reducing debt and improving the financial stability of the company.
• General Corporate Purposes: In addition to debt repayment, the IPO proceeds will also be utilized for general corporate purposes. This may include working capital requirements, strategic investments, expansion plans, and other operational needs that contribute to the overall growth and development of the company.

Here are the market lot details for the Jupiter Hospitals IPO:

• Retail Minimum: 1 lot
  • Shares: 20
  • Amount: ₹14,700
• Retail Maximum: 13 lots
  • Shares: 260
  • Amount: ₹191,100
• S-HNI Minimum: 14 lots
  • Shares: 280
  • Amount: ₹205,800
• B-HNI Minimum: 69 lots
  • Shares: 1,380
  • Amount: ₹1,014,300

This information specifies the minimum and maximum lot sizes and the corresponding number of shares and application amounts for different categories of investors.

Jupiter Hospitals IPO Allotment & Listing Dates

Event	Date
Anchor Investors Allotment	September 5, 2023
IPO Open Date	September 6, 2023
IPO Close Date	September 8, 2023
Basis of Allotment	September 13, 2023
Refunds	September 14, 2023
Credit to Demat Account	September 15, 2023
IPO Listing Date	September 18, 2023

The following table provides a summary of the significant financial data for Jupiter Life Line Hospitals Ltd over the last three concluded fiscal years:

Particulars	FY23	FY22	FY21
Net Revenues (₹ in crore)	902.96	737.14	490.27
Sales Growth (%)	22.50%	50.35%
Profit after Tax (₹ in crore)	72.91	51.13	-2.30
PAT Margins (%)	8.07%	6.94%	-0.47%
Total Equity (₹ in crore)	363.91	288.43	246.44
Total Assets (₹ in crore)	985.53	908.70	788.91

Ratios	3Y average (%)	FY23	FY22	FY21
ROE (%)	12.3	20	17.7	-0.9
ROCE (%)	14.4	20.9	16.1	6.1
EBIT margin (%)	13.9	18.2	16	7.5
Debt-to-equity		1.3	1.7	1.8

Jupiter Hospitals’ IPO valuation for FY2023:

Earning Per Share (EPS): ₹13.95 per Equity Share

Net Asset Value (NAV): ₹64.39 per Equity Share

the positive aspects of Jupiter Life Line Hospitals Ltd:

• Established and knowledgeable promoters with a wealth of experience.
• Demonstrated a robust and consistent financial performance over the years.
• The hospital is situated on company-owned land, providing stability and control over assets.
• The company is poised to eliminate its debt burden following the initial public offering (IPO), enhancing its financial health.
• The planned addition of a new hospital facility positions the company for future expansion and growth.
• The company has secured a highly substantial anchor book, reflecting strong investor interest and confidence.

The Negaitive aspects of Jupiter Life Line Hospitals Ltd:

• A significant portion of Jupiter’s revenue (54.2% in FY23) relies heavily on the Thane hospital. Any adverse developments affecting the Thane hospital’s performance or any changes in economic or political circumstances in the western region of India, especially around Thane, could have a substantial impact on the company’s business, financial stability, and operational outcomes.
• The hospital’s operations are highly dependent on healthcare professionals, including doctors and nurses. Any challenges in attracting and retaining qualified healthcare professionals may have an adverse effect on Jupiter’s business, financial health, and operational results.
• The healthcare industry is subject to rigorous regulation, requiring Jupiter to obtain, renew, and maintain various statutory permits, accreditations, licenses, and compliance with safety, health, environmental, labor, and other governmental regulations. Any alterations in these regulations or violations of them could potentially harm the company’s business, financial condition, and operational performance.
• Jupiter incurs substantial expenses related to medical equipment, workforce, infrastructure maintenance and repairs, ancillary supplies, and pharmaceuticals. An inability to secure favorable pricing from suppliers or effectively negotiate compensation for healthcare professionals could impact profitability. Moreover, if Jupiter cannot pass these costs on to patients, it may have an adverse effect on the company’s business, financial stability, and operational results.

The lead managers, also known as merchant bankers, for the Jupiter Hospitals IPO are:

• ICICI Securities Limited
• Nuvama Wealth Management Limited
• JM Financial Limited

Based on the recommendations from leading analysts and stockbrokers for the Jupiter Life Line Hospitals IPO, here is a summary:

Leading analyst and leading stock brokers	Read
BP Equities (BP Wealth)	Apply
DALAL & BROACHA STOCK BROKING PVT	Apply
Dilip Davda	Apply
Geojit Securities Ltd	Apply
HENSEX Securities	Apply
Nirmal Bang	Apply
Reliance Securities	Apply
SBICAP Securities Limited	Apply
SMIFS Limited	Apply
Sushil Finance Ltd	Apply
Ventura Securities Limited	Apply

Here is the information you provided:

Peer Group:

• Apollo Hospitals Enterprise Limited
• Fortis Healthcare Limited
• Max Healthcare Institute Limited
• Narayana Hrudayalaya Limited
• Global Health Limited
• Krishna Institute of Medical Sciences Limited

Company Promoters:

• Dr. Ajay Thakker
• Dr. Ankit Thakker
• Western Medical Solutions LLP

Jupiter Hospitals IPO Registrar:

• Registrar: Kfin Technologies Limited
• Phone: 04067162222, 04079611000
• Email: jupiterlife.ipo@kfintech.com
• Website: Kfin Technologies Limited

Here is the address and contact information for Jupiter Life Line Hospitals Limited:

Company Address: Jupiter Life Line Hospitals Limited 1004, 10th Floor, 360 Degree Business Park, Maharana Pratap Chowk, LBS Marg, Mulund (West), Mumbai – 400 080

Phone: +91 22 2172 5623

Email: cs@jupiterhospital.com

Website: Jupiter Hospitals Official Website