The Initial Public Offering (IPO) of Jupiter Life Line Hospitals Limited, a multi-speciality hospital chain, has witnessed strong investor interest, resulting in the IPO being subscribed 3.30 times on the second day of bidding, Thursday. The offer, which opened for subscription on Wednesday, September 6, will close on Friday, September 8.
According to data from the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), the IPO received bids for 280,31,300 shares against the 84,97,169 shares on offer. The non-institutional investors' portion was subscribed 6.63 times, while the Retail Individual Investors (RIIs) quota was subscribed 3.08 times. The category for Qualified Institutional Buyers (QIBs) received a subscription of 1.12 times.
The IPO consists of a fresh issue of equity shares worth Rs 542 crore ($73.74 million) and an offer for sale of up to 44.50 lakh equity shares. The offer is priced in a range of Rs 695-735 per share.
On Tuesday, Jupiter Life Line Hospitals announced that it had raised Rs 261 crore from anchor investors. The hospital chain stated that the proceeds from the fresh issue would be used to retire existing debt and for general corporate purposes.
Jupiter Life Line Hospitals operates under the 'Jupiter' brand in Thane, Pune and Indore with a total bed capacity of 1,194 as of December 2022. Furthermore, the company is developing a multi-speciality hospital in Dombivli, Maharashtra.
The IPO has received positive reviews from brokerage firms such as SBI Securities, Nirmal Bang, Reliance Securities, Hensex Securities, Sushil Finance, Ventura Securities, Dalal & Broacha, BP (NYSE:BP) Wealth, and SMIFS Ltd. They cited the company's well-known presence in multi-speciality tertiary and quaternary healthcare, its expanding foothold in the Western area, diversified revenue mix, and superior financial performance as reasons for their positive outlook.
ICICI Securities, Nuvama Wealth Management and JM Financial are the managers to the offer. The equity shares are proposed to be listed on BSE and NSE.
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