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Jupiter Life Line Hospitals debuts on the bourses at a 32% premium to the IPO price

Sep 18, 2023

By: BlinkX Research Team

Jupiter Life Line Hospitals shares debuted on the stock exchanges on September 18 at a 32% premium to the issue price. The stock debuted on the NSE at Rs 973 and the BSE at Rs 960, respectively, with an IPO price of Rs 735.

According to analysts, the double-digit gains were caused by high subscription numbers, high brand recall, rising healthcare sector optimism, and an overall bullish sentiment in the equity markets.

The hospital chain's Rs 869-crore initial public offering was subscribed to 63.72 times, with qualified institutional buyers purchasing 187.32 times the allotted quota. Retail investors bid 7.73 times the portion that was set out for them.

The government of Singapore, Abu Dhabi Investment Authority, Fidelity Funds, Goldman Sachs, Nomura Funds, HSBC Global, Florida Retirement System, and Natixis International Funds are among the 39 investors who have invested in the company through the anchor book.

The net fresh issue proceeds would be used primarily for repaying debt of Rs 510.4 crore, with the remainder going toward general corporate purposes. As of March FY23, its total borrowings were at Rs 476.4 crore.

It operates three hospitals with a combined capacity of 1,194 beds in the Mumbai Metropolitan Area (MMR) and western India.

Its average occupancy rate increased to 62.61 percent at the end of March FY23, up from 53.96 percent the previous year, while average revenue per occupied bed (APROB) increased to Rs 50,990 in FY23, up from Rs 48,711 in FY22.

In FY23, net profit was Rs 72.9 crore, up 42.6 percent from the previous year, with revenue from operations increasing 21.7 percent to Rs 892.5 crore and EBITDA increasing 31.2 percent to Rs 201.3 crore during the same period.