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Jupiter Life Line Hospitals IPO Launch Date, Share Price, Size, GMP & Review

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Jupiter Life Line Hospitals – About the Company

Jupiter Life Line Hospitals Limited, established in 2007, is a multi-specialty hospital mainly operating in the Mumbai area and western India. Currently, it is operating with three hospitals located at Thane, Pune, and Indore offering specialized neuro-rehabilitation services through a dedicated center employing robotics and computer assistance.

As of March 2023, all three hospitals have 1194 operational beds with a total team of 1306 medical professionals including specialists, physicians, and surgeons. All these hospitals have also received certification from the National Accreditation Board for Hospitals & Healthcare Providers (NABH) and hold accreditation in the field of medical testing from the National Accreditation Board for Testing and Calibration Laboratories (NABL).

Further, Jupiter Life Line Hospitals is looking to expand its hospital chain and planning to develop a new multi-specialty hospital in Dombivli, Maharashtra. The construction started in April 2023 and it will be designed to accommodate more than 500 beds.

Jupiter Life Line Hospitals IPO Objectives

The main objective of Jupiter Life Line Hospitals is to repay the borrowings obtained from banks that are costing the hospitals in terms of high-interest payouts. The company is likely to utilize Rs. 510.41cr for repayment/prepayment of borrowing, and going to use the remaining amount for general corporate purposes like hospital expansion and development.

Also Read: What is IPO: How it Works & Else Everything You Need To know

Jupiter Life Line Hospitals IPO Details:

IPO Date September 6, 2023 to September 8, 2023
Listing Date  September 18, 2023
Face Value ₹10 per share
Price ₹695 to ₹735 per share
Lot Size 20 Shares
Total Issue Size 11,824,163 shares
Fresh Issue (aggregating up to ₹869.08 Cr) 7,374,163 shares
Offer for Sale (aggregating up to ₹542.00 Cr) 4,450,000 shares of ₹10
  (aggregating up to ₹327.08 Cr)
Issue Type Book Built Issue IPO
Listing At BSE, NSE
Shareholding pre issue 58,191,859
Shareholding post issue 65,566,022

 

Jupiter Life Line Hospitals IPO Issue Price & Size

Jupiter Life Line Hospitals IPO Issue price will be in the range of Rs. 695 to Rs. 735 per share. While the overall IPO size will be 11824160 equity shares worth Rs. 869.08 cr. Out of this total IPO issue, the company will issue fresh equity shares worth Rs. 542.00 cr. and an offer for sale (OFS) of 4450000 equity shares. While at the upper cap, the hospital will issue approximately. 7374160 equity shares and its OFS will raise the amount Rs. 327.08 cr.

Jupiter Life Line Hospitals IPO Launch Date

Jupiter Life Line Hospitals IPO Launch Date has been announced and the issue will be open for subscription on September 06, 2023, and will close on September 08, 2023. The minimum application while applying for this IPO is 20 shares and thereafter in the multiple of the same.

The Jupiter Life Line Hospitals IPO constitutes 18.03% of the post-IPO paid-up equity capital of the company. The company has allocated the IPO not more than 50% for QIBs, not less than 15% for HNIs, and not less than 35% for Retail investors.

Jupiter Life Line Hospitals Financial Statements:

Particulars in (Rs. Cr.) FY23 (9M) FY22 FY21 FY20 CAGR
Revenue from Operations 650.24 733.12 486.16 462.94 11.99%
Other Income 6.94 4.2 4.10 1.90
Total Income 657.18 737.32 490.26 464.84
Operating Expenses 500.50 579.74 419.00 380.32
EBITDA 156.68 157.58 71.26 84.52 22.84%
EBITDA Margin% 24.10 21.49 14.66 18.26 9.69%
Depreciation 28.58 36.16 30.74 25.91
Interest 31.34 43.94 38.98 25.69
Profit Before Tax 96.76 77.48 1.54 32.92
Total Tax 39.6 25.99 3.85 3.26
Profit After Tax (PAT) 57.16 51.49 -2.31 29.66 24.44%
PAT Margin% 8.79 7.02 -0.48 6.41 11.12%
EPS Rs (Basic and diluted) 10.11 9.65 -0.45 5.83  
Source: DRHP

 

Jupiter Life Line Hospitals Financial Performance

The revenue of Jupiter Life Line Hospitals has grown from Rs. 462.94 crore in FY20 to Rs. 650.24 crore in the first nine months of FY23. This growth has registered a CAGR of approx. 12%. However, owing to improved operating margins, the operating profit of the company has registered a CAGR growth of 22.84% for the same period.

The EBITDA of the company in the first nine months of FY23 stood at Rs. 156.68 crore which was only Rs. 84.52 crore in FY20. The EBITDA Margins of the Hospital has been improved from 18.26% in FY20 to 24.10% in the first nine months of FY23.

The bottom-line growth of Jupiter Life Line Hospitals was also encouraging during the same period. In FY20 company earned a Net Profit of Rs. 29.66 crore and thanks to improved PAT margins this Net Profit touched Rs. 57.16 crore in FY23. In FY20 the PAT margin was merely 6.41% and now in FY23, it has improved to 8.79%.

Jupiter Life Line Hospitals IPO Promoters & Shareholding of the Company

Dr. Ajay Thakker, Western Medical Solutions LLP and Dr. Ankit Thakker are the main promoters of the company holding 24.06%, 10.09% and 7.74% equity shares in the company respectively. However, in the promoters group, there are various other members holding the shares between 0.02% to 2.4% and the details of all shareholders are given below.

S.No. Name of the Shareholder (Promoters & Promoters Group) Pre-Offer No. of Equity Shares % of total pre-Offer paid up Equity Share Capital(%)
1 Dr. Ajay Thakker 13,597,829 24.06
2 Western Medical Solutions LLP 5,703,797 10.09
3 Dr. Ankit Thakker 4,375,789 7.74
4 Total (A) 23,677,415 41.89
       
Promoters Group    
1 Neeta Gandhi jointly with Devang Gandhi 1,380,000 2.40
2 Kirtika Thakker 1,332,750 2.36
3 Devang Gandhi jointly with Neeta Gandhi 1,310,000 2.32
4 Devang Vasantlal Gandhi (HUF) 1,250,000 2.21
5 Nikita Thakker 16,000 0.03
6 Dr. Ajay Pratap Thakker (HUF) 9,458 0.02
Total (B) 5,298,208 9.38
S. No. Selling Shareholders (Other than Promoter Group Selling Shareholders)    
1 Nitin Thakker jointly with Asha Thakker 3220000 5.7
2 Bhaskar P Shah (HUF) 500,000 0.88
3 Anuradha  Ramesh  Modi  with Megha  Ramesh  Modi  (as trustees for the benefit of Modi Family Private Trust) 400,000 0.71
4 Rajeshwari Capital Market Limited 312,500 0.55
5 Vadapathra Sayee Raghavan (HUF) 200,000 0.35
6 Sangeeta Ravat jointly with Dr. Hasmukh Ravat 50,000 0.09
7 Dr. Hasmukh Ravat jointly with Sangeeta Ravat 50,000 0.09
8 Shreyas Ravat jointly with Sangeeta Ravat 50,000 0.09
9 Total (C) 4,782,500 8.46
10 All Total (A+B+C) 33,758,123 59.73


Why Invest in Jupiter Life Line Hospitals IPO?

Investing in the healthcare sector is filled with lots of scope and opportunities due to rising diseases and unhealthy lives among people, especially in metropolitan cities. Hence, investing in the Jupiter Life Line Hospitals IPO can be a good option for investors looking to invest their money in the hospital industry but only when the valuation is attractive.

Also Read: What to Check Before Buying IPO: Things to Know & Is it Safe

Moreover, there are various risks and concerning factors associated with the operational environment of a company, whether it belongs to any sector or industry. Similarly, in the healthcare and hospital industry, various risk factors can affect the company. Hence, below we will discuss about the strength of the company that will help it drive its revenue growth in future at the same also talk about the risk associated with the company.

Strengths:

  • Jupiter Life Line Hospitals operates in the healthcare and hospital industry with over 15 years of experience in providing a wide range of specialized medical services with a strong reputation for medical skills to treat and take care of patients carefully.
  • All the hospitals of Jupiter Life Line Hospitals have been certified by the National Accreditation Board for Hospitals & Healthcare Providers (NABH) and have been accredited in the field of medical testing by the National Accreditation Board for Testing and Calibration Laboratories (NABL).
  • Jupiter Life Line Hospitals operates with ultramodern medical amenities and high-quality patient care facilities to make sure patients can recover fully and timely to maintain the reputation of the hospital.
  • Currently, Jupiter Life Line Hospitals is operating with the capacity of 1194 beds, and 1,306 doctors including specialists, physicians, and surgeons with well-trained skilled staff to manage everything.
  • As per the CRISIL Report, the company's Thane and Indore hospitals are among the few hospitals in the western region of India to facilitate euro-rehabilitation services through a dedicated robotic and computer-assisted neuro-rehabilitation centre. It is also operating one of the few multi-organ transplant centres in Thane.
  • The revenue from all hospitals is well-diversified from inpatient and outpatient. Of the revenue from operations in Fiscal 2023 from Thane, Pune, and Indore hospitals accounted for 54.18%, 34.03%, and 11.79%, respectively.
  • Apart from that, the company is also in the development phase of a multi-specialty hospital in Dombivli, Maharashtra, that has been designed to accommodate over 500 beds and has commenced construction in April 2023, will be adding more revenue for the hospital in the near future.
  • At the financial end, the performance of the company is not bad. Over the last 3.75 years, the revenue of the company grew at a CAGR of 12%. While due to better operating margins, the operating profit of the company registered a CAGR growth of 22.84% during the same period.
  • In FY20 the operating margin of Jupiter Life Line Hospitals was 18.26% and in the first nine months of FY23, it has improved to 24.10%. The Net Profit of the company also grew at a CAGR of 24.44% during the same period and that is thanks to improved Net Profit margins.
  • Further, with the funds raised through this IPO after paying the debt of the company, the finance cost of the company will come down. Reducing the debt will bring down its interest cost resulting in a high profit margin for the company and higher net earnings.

Risks:

  • The healthcare and medical industry can be one of the most promising industries but it is also very regulated and sensitive towards the Government policy regarding the medical services offered by hospitals and other similar healthcare institutions.
  • Another risk to the hospital is that its major revenue comes from Thane hospital, hence any kind of operational disturbance in this particular hospital unit can also affect the earnings of the company.
  • Keeping the medical staff including hospitals and other key employees is another risk factor, if not retained or attrition rate is high, it will increase the hiring cost of the company. In FY21, FY22 and FY23, the attrition rate for doctors was 3.40%, 5.08% and 1.85%, respectively, while the attrition rate for nurses was 26.58%, 31.81% and 27.97%, respectively, for the same periods.
  • The company operates in a highly competitive industry, and Jupiter Life Line Hospitals is mainly serving in the Mumbai and western regions of India. Expanding its operations of the hospital chain in another part of the country will face competition from other national as well as regional players making it difficult to ensure the revenue growth of the hospital.
  • Though the company, has managed to achieve profit in FY22 and FY23, in FY21 it has incurred a loss of Rs. 2.31 crore. That is mainly because of muted revenue growth and high operating costs. Hence ensuring the revenue growth and maintaining the operating cost is another challenge for the company.

Also Read: What are the Risk Factors Involved in Applying for an IPO

Jupiter Life Line Hospitals IPO Grey Market Premium

The Jupiter Life Line Hospitals IPO Grey Market Premium is hovering around Rs 200, which means the stock of Jupiter Life Line Hospitals is likely to list around Rs. 935 or above depending on the further demand and supply of the shares in the IPO.

GMP is the grey market price of unlisted shares offered in an IPO, and it may fluctuate as per the increasing demand for more shares through the bidding process in the IPO. However, it is not necessary the GMP is the true price and share will list with the same premium, it is an off-market speculation by the traders and their sentiments towards any stock.

Also Read: What is Grey Market Premium in IPO: How is GMP Calculated &Reliable

Jupiter Life Line Hospitals IPO Review & Analysis

Jupiter Life Line Hospitals have a strong presence in Mumbai and the southern region of India, making it one of the fastest-growing hospitals in this part of the country. However, post-COVID, it has suffered several obstructions but recovered and maintained steady financial growth in the past two years.

During the last three years hospital has improved its operating as well as net profit margins. Further with the funds raised through this IPO, the debt will be reduced and the net profit margin will improve due to a reduction in financing costs heavily incurred by the company. Hence, the Jupiter Life Line Hospitals will become a debt-free company.

In the last three years, the average EPS of Jupiter Life Line Hospitals was Rs.9.62 (diluted basis) while attributing the FY23 earnings to the post-IPO fully diluted paid-up equity capital of the company, the asking price is at a P/E of 66.10.

Compared with its listed peer groups members like Fortis Healthcare, Apollo Hospitals, Max Healthcare Institute Limited, Global Health Krishna Institute and Narayana Hrudayalaya are trading at P/E of 40.26, 84.64, 45.97, 53.7 and 45.09 making the Jupiter Life Line Hospitals fairly priced. Though it is not comparable on an apple-to-apple basis still Investors may apply for this IPO for medium to long-term investment gains.

How to Apply for Jupiter Life Line Hospitals IPO?

Applying the Jupiter Life Line Hospitals IPO is very simple and trouble-free if you choose Moneysukh for your investment and trading solutions. Here you just need to open a trading and demat account with Moneysukh and follow the steps given below.

Steps to Apply for Jupiter Life Line Hospitals IPO:

Step 1: Jupiter Life Line Hospitals IPO will be open on 06 Sep for online bidding.

Step 2:When open browse trade.moneysukh.com and log in with your User ID & password.

Step 3:Now you have to find the IPO section and select the Jupiter Life Line Hospitals IPO.

Step 4:Herr you just need to fill in the various details like price, quantity, and so on.

Note: Make sure at the time of applying in any IPO that, always bid at the cutoff price to avoid rejection. 

Step 5:Finally, make the payment before submitting your IPO application successfully.

How to Check Jupiter Life Line Hospitals IPO Allotment Status?

The IPI bidding process will be closed on 08 Sep 2023, and once this bidding process ends, the basis of allotment will be decided on 13 Sep 2023. If an IPO is oversubscribed many times, then there is less chance of getting the allotments of shares. And if you have not been allotted any shares, your application money will be refunded between 14 to 15 Sep 2023.

Also Read: How to Increase the Chances of IPO Allotment

However, if you are lucky and get the allotment, then the allotted shares will be allocated to your demat account on 15 Sep 2023. The listing of Jupiter Life Line Hospitals IPO shares will be on 18 Sep 2023 you can sell the shares if the IPO is listed at a very high premium price, or hold a few shares in your account with the long-term investment point of view.

Also Read: How to check IPO allotment status on NSE, BSE through Moneysukh

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