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Jupiter Life Line Hospitals lists 32% higher than IPO price at Rs 973

18 September 20234 mins read by Angel One
The company is going to utilise the proceeds to pay off the debt on its balance sheet, making the company almost debt-free.
Jupiter Life Line Hospitals lists 32% higher than IPO price at Rs 973
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Jupiter Life Line Hospitals Limited serves as a multi-speciality tertiary and quaternary healthcare provider in the Mumbai Metropolitan Area (MMR) and the western region of India, listed with a premium of 32% at Rs 960 per share on BSE. On the NSE, the stock debuted at Rs 973, indicating an increase of 32% compared to its initial public offering price of Rs 735 per share.

Currently, while writing this article the stock is trading at Rs 1030 on the BSE. Its intraday highs and lows are Rs 1042 and Rs 960, respectively. The current market capitalization of the company is Rs 6760.50 Crore.

The company will primarily utilise the proceeds from the new issue to repay a debt with the remaining funds allocated for general corporate purposes.

Company Profile

Jupiter Life Line Hospitals serves as a corporate provider of quaternary care healthcare services in the western regions of India. As of March 31, 2023, the company operates three hospitals under the ‘Jupiter’ brand located in Thane, Pune, and Indore, offering a combined operational bed capacity of 1,194 beds and a medical team of 1,306 doctors, including specialists, physicians, and surgeons.

Additionally, the company is presently in the process of constructing a multi-specialty hospital in Dombivli, Maharashtra. This new facility is designed to accommodate over 500 beds and construction commenced in April 2023. Its average occupancy rate improved to 62.61% in FY23, compared to 53.96% in the previous year, while the average revenue per occupied bed (ARPOB) stood at Rs 50,990 in FY23, an increase from Rs 48,711 in FY22.

Let’s recapitulate the subscription history of the company. 

On the final day of the IPO window September 08, 2023, the IPO witnessed a subscription rate of 64.80 times. The public issue received an overwhelming response, with the retail category being subscribed 8 times, the QIB category achieving a subscription rate of 181.89 times, and the NII category reaching a subscription rate of 36 times.

The company had attracted Rs 260.72 crore from various anchor investors. It has allocated 35.47 lakh equity shares at Rs 735 per share to anchor investors.

The price range for the IPO was set between Rs 695 and Rs 735, with a face value of Rs 10 per share and a lot size of 20 shares. The total size of the company’s IPO was Rs 869 Crore. The final share issue price of the company was fixed at Rs 735 each.

Following is the financial performance of the company: 

Particulars FY21 (Rs Cr) FY22 (Rs Cr) FY23 (Rs Cr)
Revenue 490.27 737.14 902.96
Net Profit / (Loss) -2.30 51.13 72.91
Total Assets 788.91 908.70 985.53
Total Borrowings 425.52 495.25 468.63
Net Worth 246.44 288.43 363.91

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Considering the current market conditions Nifty is trading near its all-time high levels, investors who applied for listing gains have already earned 32% on the listing day alone and can choose to book the profit it has generated.

On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which could prove to be beneficial.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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