Jupiter Life Line Hospitals IPO: All You Need To Know

Jupiter Life Line Hospitals Ltd. will launch its initial public offering on Sept. 6.

The multispecialty hospital plans to raise Rs 869.08 crore via a fresh issue and an offer for sale.

The fresh issue will consist of 73.74 lakh equity shares aggregating Rs 542 crore, and the OFS includes 44,50,000 shares aggregating Rs 327.1 crore. The price band is fixed in the range of Rs 695–735 per share.

Out of the total IPO size, 50% is reserved for qualified institutional buyers, 15% for non-institutional investors, and the remaining 35% is to be allotted to retail individual investors.

Issue Details

• Issue opens: Sept. 6.

• Issue closes: Sept. 8.

• Fresh issue size: Rs 542 crore.

• OFS size: Rs 327.1 crore.

• Face value: Rs 10 apiece.

• Fixed price band: Rs 695–735 per share.

• Minimum lot size: 20 shares.

• Listing: NSE, BSE.

Shareholding Pattern

The pre-IPO shareholding stands at 58,191,859 and will change to 65,566,022 after the IPO.

The OFS includes up to 1.25 million shares from Devang Vasantlal Gandhi (HUF), up to 9 lakh shares by Devang Gandhi jointly with Neeta Gandhi, up to 1 million shares from Nitin Thakker jointly with Asha Thakker, and up to 4 lakh shares each by Anuradha Ramesh Modi, Megha Ramesh Modi and Bhaskar P Shah (HUF).

Business

Founded in 2007, Jupiter Life Line Hospitals is a multispecialty tertiary and quaternary healthcare provider in western India.

It currently operates three hospitals under the Jupiter brand in Thane, Pune and Indore. The company has a total operational bed capacity of 1,194 beds and 1,246 doctors—including specialists, physicians and surgeons as of March 31.

The business is currently building a multispecialty hospital in Dombivli, Maharashtra, with around 500 beds. The construction commenced in April.

In fiscal 2023, the company's in-patient and out-patient income was distributed among hospitals, with Thane, Pune and Indore hospitals accounting for 54%, 34% and 12% of revenue from operations respectively.

Use Of Proceeds

The funds that will be raised will be employed for the following purposes:

• Repayment/prepayment, in full or part, of borrowings availed from banks by the company and material subsidiary: Estimated Rs 463.9 crore.

• General corporate purposes.

Risk Factors

• The company's revenue is significantly dependent on its hospital in Thane. The hospital was responsible for 54% of the company's revenue in the last financial year.

• The company's industry is highly regulated and requires renewal and maintenance of regulatory permits, accreditations and licences. Any regulatory changes or violations may adversely affect the business.

• The business incurs high expenses in relation to medical equipment and infrastructure maintenance. Inability to obtain favourable pricing from suppliers or negotiate compensation for healthcare professionals could affect profitability.

• The company's ability to provide affordable healthcare depends on the volume of patients, occupancy rates and managing project costs.

• Inability to maintain optimum levels of doctor-patient ratio has an impact on operations.