Company and IPO Overview:
Jupiter Life Line Hospitals Limited is a prominent provider of comprehensive healthcare services in the Mumbai Metropolitan Area and the western region of India. With over 15 years of experience, Jupiter Life Line Hospitals has earned a reputation as a leading corporate quaternary care healthcare service provider in densely populated areas of western India.
Currently, Jupiter Life Line Hospitals operates three hospitals under the "Jupiter" brand, located in Thane, Pune, and Indore. These hospitals collectively offer a total of 1,194 beds and boast a medical staff of 1,306 doctors, including specialists, physicians, and surgeons, as of March 31, 2023.
Additionally, the company is actively involved in the development of a state-of-the-art multi-specialty hospital in Dombivli, Maharashtra. This facility is designed to accommodate more than 500 beds and construction commenced in April 2023.
One of the core principles guiding Jupiter Life Line Hospitals is a "patient-first" ideology. This means they prioritize the well-being of their patients by providing top-notch infrastructure, cutting-edge technology, and comprehensive support. They also embrace innovation and forward-thinking approaches to healthcare delivery. As of March 31, 2023, their hospitals offer over 30 key specialties. According to the CRISIL Report, the company’s Thane and Indore hospitals are among the few in India’s western region to offer neuro-rehabilitation treatments via a specialized robotic and computer-assisted neuro-rehabilitation centre. Furthermore, it operates one of Thane’s few multi-organ transplant centres.
Each of the hospitals in Thane, Pune, and Indore has received certifications from the National Accreditation Board for Hospitals & Healthcare Providers ("NABH") and accreditation in the field of medical testing from the National Accreditation Board for Testing and Calibration Laboratories ("NABL"). The Thane Hospital has also achieved the NABH Safe-I certification and the NABH 'Nursing Excellence' accreditation in the past.
Jupiter Life Line Hospitals IPO is the next main board IPO which is ready to set its footprints in the stock market and the company is about to raise around ₹ 869.08 crores via IPO comprising Fresh Issue of ₹ 542 crores and Offer For Sale upto ₹ 327.08 crores. The price band of the issue is ₹ 695 to ₹ 735 with a minimum market lot of 20 shares. Jupiter Life Line Hospitals IPO subscription quota for retail is 35.00%, NII is 15.00% and QIB is 50.00%.
Financials (rounded off):
Date | Total Revenue (₹ in cr) | PAT (₹ in cr) |
31/03/2021 | 490 | (2) |
31/03/2022 | 737 | 51 |
31/03/2023 | 903 | 73 |
Objectives of the Issue:
1. Repaying or prepaying, either fully or partially, the borrowings obtained from banks by our company and significant subsidiary.
2. Meeting general corporate requirements.
IPO Details:
IPO Date | 06/09/2023-08/09/2023 |
Face Value | ₹10 per share |
IPO Price Band | ₹695-₹735 per share |
IPO Lot Size | 20 Shares |
Listing at | NSE, BSE |
Basis of Allotment | 13/09/2023 |
Credit of Shares in Demat | 15/09/2023 |
Listing Date | 18/09/2023 |
Pre-Issue Shareholding | 40.69% |
Post-Issue Shareholding | - |
Retail Minimum Lot Size | 20 shares (₹14,700) |
Valuations & Margins:
Indicators | FY 21 | FY 22 | FY 23 |
EPS | (0.45) | 9.65 | 12.95 |
P/E | - | - | 56.76 |
EBITDA (%) | 14.54 | 21.35 | 23.45 |
Debt/Equity | - | - | 1.29 |
ROCE (%) | 6.07 | 16.08 | 20.94 |
Important things to note about the Company:
Top reasons to consider the IPO:
1. Jupiter Life Line has advanced levels of hospitals which are highly specialized and are located in the populated micro markets in the western region of India.
2. Each of the company’s three hospitals is a full-service hospital, operating on an ‘all-hub-no-spoke’ model where each hospital is independent, individually well-equipped to serve the healthcare needs of the patients, right from diagnostics to surgery and rehabilitation.
3. Jupiter Life Line Hospitals attracts and retains skilled and experienced healthcare professionals which helps it maintain its standard of quality healthcare services.
4. The management of Jupiter Life Line Hospitals including the founder has good experience in the field which helps them maintain its operational and administrative efficiency.
Risk Factors to watch out in the IPO:
1. Like others in the category Jupiter Life Line operates in a highly regulated industry. Any regulatory changes or a failure to comply with any regulations can adversely affect its business.
2. The hospital industry faces high expenses in relation to medical equipment costs, manpower costs, infrastructure maintenance and repair costs, ancillary items and pharmaceuticals. Any inability to attain these at a reasonable cost can impact Jupiter Life Line’s profitability.
3. Jupiter Life Line has certain public interest litigations in relation to the land on where Thane Hospital is situated. Proceedings against the company’s favour can adversely impact its business.
4. Jupiter Life Line’s affordable healthcare depends on patient volume, occupancy rates, project cost management, and capital efficiency. Any increase in such costs could adversely affect its business, financial condition and results of operations.
Crisp Insights:
Jupiter Life Line Hospitals IPO GMP Today: The Company is commanding a GMP of around Rs.215.
Jupiter Life Line Hospitals IPO Review: Listing gains likely as per GMP data.
Jupiter Life Line Hospitals GMP is strong and hence, investors can look to invest for listing as well as long term gains.
Disclaimer: All information is provided for educational and informational purpose only. Data is fetched from publicly available sources such as the DRHP filed by the company. The website or the author takes no guarantee for the accuracy of the data however, we have tried our best to present accurate data to out readers. Please consult a financial advisor or do your own analysis before investing/trading in the stock market.
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