The shares of Jupiter Lifeline Hospitals Ltd made a strong debut on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on Monday. The hospital chain's shares listed at a premium, with the share price on the NSE listed at Rs 973 ($1 = Rs 83.05) per share, 32.38% higher than the issue price of Rs 735. On the BSE, the share price was listed at Rs 960 per share.
This follows a successful initial public offering (IPO) of Rs 869 crore (Rs 1 crore = $120,409) that was subscribed 63.72 times during September 6-8, backed primarily by qualified institutional buyers who bought 187.32 times their allotted quota. Retail investors and high net-worth individuals also showed support for the issue, placing bids 7.73 times and 34.75 times their respective portions.
Jupiter Lifeline Hospitals operates three hospitals in the Mumbai Metropolitan Area and western region of India with a total capacity of 1,194 beds as of March 2023. The company is also constructing its fourth multi-specialty hospital in Dombivli, Maharashtra, which is expected to have over 500 beds.
The proceeds from the IPO will be used mainly to repay debt worth Rs 510.4 crore, with the remaining funds allocated for general corporate purposes. The company's total borrowings stood at Rs 476.4 crore as of March FY23.
Jupiter Lifeline Hospitals has shown a consistent improvement in performance, which is likely to be further boosted by the retirement of debt from the IPO proceeds. The company recorded a profit of Rs 72.9 crore for fiscal FY23, up 42.6 percent over the previous year. This was supported by an increase in revenue from operations by 21.7 percent on-year to Rs 892.5 crore, while its EBITDA jumped 31.2 percent to Rs 201.3 crore. The EBITDA margin for FY23 expanded 163 bps to 22.55 percent.
The company's market capitalization stands at Rs 4,819 crore at Rs 735 per share, the upper price band. The IPO was priced between Rs 695-735 and received positive feedback from market experts. Jupiter Lifeline Hospitals is promoted by Ajay Thakker, Ankit Thakker, and Western Medical Solutions LLP.
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