Jupiter Life Line Hospitals IPO: All you need to know

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Jupiter Life Line Hospitals IPO

The initial public offering (IPO) for Jupiter Life Line Hospitals is set to open for subscription from 6 September 2023 to 8 September 2023. The set IPO price range is ₹695 and ₹735 with a lot size of 20 shares with a minimum investment of ₹14,700.

The listing date of the IPO is 18 September 2023. The total IPO size is ₹ 869.08 crore which includes a ₹ 542 Crore fresh issue and ₹ 327 crore Offer-for-Sale (OFS).

Jupiter Life Line Hospitals IPO: Business Overview

Jupiter Life Line Hospitals is a major healthcare provider in the Mumbai area and western India. It was founded in 2007 and runs three hospitals in Thane, Pune, and Indore. As of March 2023, they have 1,194 beds and 1,306 doctors, including specialists. They're also building a new hospital in Dombivli, Maharashtra, that will have more than 500 beds. Construction started in April 2023.

According to a CRISIL Report, Jupiter Life Line Hospitals' locations in Thane and Indore are some of the few in western India that offer specialized brain and nerve treatment through a high-tech center. The Thane Hospital also has a rare center for doing transplants of multiple organs. All their hospitals in Thane, Pune, and Indore have received quality certifications from Indian healthcare and medical testing authorities.

Jupiter Life Line Hospitals IPO Details

IPO Open and Close DateSep 6, 2023 to Sep 8, 2023
IPO price range₹695 to ₹735 per share
Lot Size20 Shares
IPO size₹869.08 Cr
Basis of AllotmentWednesday, 13 September 2023
Credit of Shares to DematFriday, 15 September 2023
Listing DateMonday, 18 September 2023

Jupiter Life Line Hospitals Reservation:

Shares to offerSharesRs in Crores
QIB Shares Offered(50%)5912075434.5
NII (HNI) Shares Offered(15%)1773623130.35
Retail Shares Offered (35%)4138452304.15
Total Shares11824150869

ICICI Securities Limited, Edelweiss Financial Services Limited, and JM Financial Limited have been appointed as the book-running lead manager for the Jupiter Life Line Hospitals IPO, while KFin Technologies Limited will serve as the registrar to the issue. The shares are expected to be listed on  NSE, with a tentative listing date of September 18, which falls on a Monday.

Objective of the Jupiter Life Line Hospitals IPO issue:

  • The net proceeds of the fresh issue are proposed to be utilised in the following manner:
  • Repayment/pre-payment, in full or part, of borrowings availed from banks by company and material subsidiary, and
  • General corporate purpose

Jupiter Life Line Hospitals Financial Analysis:

ParticularsFY23(in Rs Crores)FY22(in Rs Crores)FY21(in Rs Crores)
Total Revenue902.96737.14490.27
Profit After Tax72.951.128-2.30
Current Assets209.26180.44112.76
Current Liabilities132.13123.2095.852

The Current Assets have increased from Rs 180.44 Crores in March 2022 to Rs 209.26 Crores in March 2023, with an increase of 15.9721%% indicating overall Asset performance.

In terms of revenue, the Company has experienced significant growth in operating revenue resulting in an increase in Total revenue, rising from Rs. 737.14 Crores in FY22 to Rs. 902.96 Crores in FY23, with an increase of 22.495%. Moreover, Net profits have also seen an increase, going up from Rs. 51.128 Crores in FY22 to Rs. 72.9 Crores in FY23, with a striking increase of three times to 42.5833% over the past year.

Key Performance IndicatorValues
Market Cap (₹ Cr.)4819.1
EPS (Rs)13.95
P/E (x)52.68

Competitive Strengths of Jupiter Life Line Hospitals IPO:

  • A well-known healthcare provider that offers a wide range of specialized medical services and has over 15 years of experience and a strong reputation for medical skills.
  • A centralized approach focused on high-quality patient care, backed by up-to-date facilities and technology.
  • The talent to bring in and keep highly trained and experienced medical staff.
  • A skilled management team that not only has expertise but also cares about environmental, social, and ethical issues.

Risk of Jupiter Life Line Hospitals :

  • The success of the business strongly depends on having good medical staff; not being able to hire or keep doctors and nurses could negatively impact its finances.
  • The business is highly dependent on its Thane location and operates mainly in western India. Any economic or political shifts in this area could have a big impact on its financial stability.
  •  Operate in a strictly regulated industry and need to keep up with various permits and rules. Any changes in regulations or violations could seriously harm our financial standing.
  • Failing to transfer increasing expenses such as equipment, staff, and upkeep to our patients could have a detrimental effect on our financial situation.
  • Delays in building new hospitals or expanding in western India could harm business and finances.

Peers Comparison of  Jupiter Life Line Hospitals:

Name of the CompanyRevenue (In Crore)PAT (In Crore)EPS ( in Rs)P/E RatioMcap (In Crore)
Jupiter Life Line Hospitals Limited902.9672.913.9552.684819.1
Apollo Hospitals Enterprise Limited4,318.55145.6456.9784.6469,591.77
Fortis Healthcare Limited1,656.49138.307.840.2624,536.14
Max Healthcare Institute Limited1,254.73250.9211.3845.9755,881.49
Narayana Hrudayalaya Limited1,236.27173.2429.8533.1421,024.64
Global Health Limited731.83101.0712.5853.718,865.73
Krishna Institute of Medical Sciences Limited580.81986.7342.0345.0915,445.36