Jupiter Life Line Hospitals, a leading healthcare provider in the Mumbai Metropolitan Area and western region of India, has seen strong demand for its initial public offering (IPO). The three-day bidding process for shares priced between Rs 695-735 each began on Friday, with a minimum bid requirement of 20 equity shares. The issue comprises fresh equity shares worth Rs 542 crore and an offer-for-sale (OFS) of up to 44.50 lakh (1 lakh = 100,000) equity shares valued at Rs 327.08 crore.
The allocation for qualified institutional bidders (QIBs) was oversubscribed by 25.83 times, while non-institutional bidders subscribed 20.26 times. The portion reserved for retail investors was subscribed 5.43 times. Half of the issue, or 50% of the equity shares, is reserved for QIBs, while non-institutional investors will receive a 15% allocation in the primary offering. The remaining 35% shares are reserved for retail investors.
Ahead of the public issue, Jupiter Life Line Hospitals raised Rs 260.72 crore from 39 anchor investors, including the Abu Dhabi Investment Authority, Goldman Sachs (NYSE:GS), Nomura Funds, Government of Singapore, HSBC Global and Fidelity Funds, among others. The company allocated these investors 35.47 lakh equity shares at an issue price of Rs 735 apiece.
The company operates three hospitals under the 'Jupiter' brand in Thane, Pune and Indore with a total bed capacity of 1,194 hospital beds as of March 31. Two major growth drivers have been identified for the company: ramping up its Indore facility – currently at 40 per cent occupancy – and a new 500-bed hospital in Dombivli to be operationalized within the next two to three years, according to Dalal & Broacha Stock Broking.
Shares of Jupiter Life Line Hospitals are scheduled to be listed on both BSE and NSE exchanges on September 18. ICICI Securities, Nuvama Wealth Management and JM Financial are the lead managers to the issue, while Kfin Technologies India has been appointed as the registrar.
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