IPO listed on 18 Sep'23
Jupiter Life Line Hospitals Ltd
Minimum Investment
₹ 14,700 / 20 shares
Grey market premium
₹ 218 (30% premium)
Issue price
₹ 735
Listing price
₹ 973
% since launch
Listing on
Sep 18, 2023
Our Verdict:
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- The firm has a strong foothold in the thriving Mumbai Metropolitan Region (MMR), characterized by a steadily rising population. The MMR stands out as a concentrated market, boasting 33 beds for every 10,000 individuals. This is notably higher than Maharashtra's average, which is 20 beds for the same number of individuals.
- From a valuation standpoint, the IPO appears to be fairly priced at a PE multiple of 66x on post-issue capital. Additionally, the grey market premium (GMP) for the issue indicates a premium listing, making it appealing for investors seeking listing gains.
- Given the company’s robust financial track record, growth objectives and strong industry tailwinds, the risk:return ratio looks favourable for long-term investors. Therefore, investors can “Subscribe” to this IPO from a long-term perspective.
About the company
Founded in
18 Nov'02
Managing director
Dr Ajay Thakker
- Jupiter Life Line Hospitals Ltd (Jupiter) stands as a principal multi-speciality tertiary and quaternary healthcare provider in the MMR and the western part of India. As of March 31, 2023, they operate 1,194 hospital beds across 3 hospitals.
- Presently, they are working on establishing a multi-speciality hospital in Dombivli, Maharashtra, which is planned to accommodate more than 500 beds.
STRENGTHS
- Strong Financial Growth: Between FY21-23, Jupiter exhibited a remarkable growth with a CAGR of 35% in Revenue and 72% in EBITDA. By FY23, the net profit stood at Rs 72.9 crore, making a notable turnaround from a net loss of Rs 2.3 crore in FY21.
- Uptrend in Profit Margins: There has been a marked enhancement in the company's EBITDA margin, rising from 14.54% in FY21 to 23.45% in FY23. This resulted in a boost of the PAT margin from -0.47% to 8.07% within that period.
- Healthy Return Metrics: The firm’s return ratios have witnessed an impressive growth, with Return on Equity hitting 20% and Return on Capital Employed climbing to 21% by FY23.
RISK FACTORS
- Significant Debt: As of March 2023, Jupiter holds substantial borrowings amounting to Rs 404.9 crore. Nevertheless, after the IPO, the company plans to be debt-free, potentially resulting in significant savings on financing expenses.
- Subpar Bed Utilization: Compared to most of their competitors in the market, they have a below-average bed occupancy rate. However, there's been a noticeable improvement in occupancy rates for their Thane and Pune hospitals, increasing from 50.45% in FY21 to 69.99% in FY23.
- Existing Legal Challenges: The company is currently facing certain public interest litigations, particularly concerning the land of their Thane Hospital. Given that a significant portion of the company's revenue hinges on this hospital, any unfavourable verdict could detrimentally affect their operational results and financial health.
Issue details
Issue type
Mainstream
Issue size
₹ 869.08 crore
Fresh Issue
₹ 542 crore
OFS
₹ 327.08 crore
Price range
₹ 695 - 735
Lot size
20 shares
Issue Objective
Net proceeds from the fresh issue will be utilised towards:
- Repayment/pre-payment of borrowings availed by the company and its subsidiary; and
- General corporate purposes.
Dates
Bidding open
6 Sep'23
Bidding close
8 Sep'23
Allotment date
13 Sep'23
Refund date
14 Sep'23
Listing
18 Sep'23
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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