Jupiter Life Line Hospitals IPO - Investment Rationale, Issue Details, Financials, Key Risks: HDFC Securities

HDFC Securities Retail Research

Jupiter Life Line Hospitals Ltd. launched its initial public offering today and closes on September 08. The price band is fixed in the range of Rs 695–735 per share.

Objects of Issue:

The offer comprises of the fresh issue by the company and the offer for sale by the selling shareholders.

Offer for Sale

Each of the selling shareholders will be entitled to the respective portion of the proceeds of the offer for sale, after deducting their portion of the offer related expenses and relevant taxes thereon. The company will not receive any proceeds from the offer for sale, and accordingly, the proceeds from the offer for sale will not form a part of the net proceeds.

Objects of the fresh 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 the company and material subsidiary; and:

• General corporate purposes.

In addition to the aforementioned objects, Jupiter Life Line Hospital will receive the benefits of listing of its equity shares on the stock exchanges including creation of a public market for equity shares in India.

About the company

Jupiter Life Line Hospitals is among the key multi-specialty tertiary and quaternary healthcare providers in the Mumbai Metropolitan Area and western region of India with a total bed capacity of 1,194 hospital beds across three hospitals as of March 31, 2023.

It has been operating for over 15 years as a corporate quaternary care healthcare service provider in densely populated micro markets in the western regions of India and currently operates three hospitals under the 'Jupiter' brand in Thane, Pune and Indore, with an operational bed capacity (i.e. census and non-census beds) of 950 beds and 961 beds, as of March 31, 2023. and 1,306 doctors including specialists, physicians and surgeons, as of March 31, 2023.

It is also currently in the process of developing a multi-specialty hospital in Dombivli, Maharashtra, which is designed to accommodate over 500 beds and has commenced construction in April 2023. It follows a ‘patient first’ ideology by creating the best infrastructure, technology and support to put the patient first and foremost and be futuristic and innovative in delivery of healthcare.

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