Jupiter Hospitals Gains Rs 123 Crore in Pre-IPO Round; SEBI Approves Public Offering

22 Aug 2023 , 02:17 PM

Jupiter Life Line Hospitals, a diversified multi-specialty hospital chain, has successfully secured Rs 123 crore through a pre-IPO funding round involving institutional investors. Additionally, the company has received the green light from the Securities and Exchange Board of India (SEBI) to raise capital through its forthcoming initial public offering (IPO).

This development was revealed in an update published on Tuesday, indicating that the observation letter from SEBI was obtained on August 11.

During the pre-IPO phase, the company issued 16.7 lakh shares at a rate of Rs 735 per share, as highlighted in a public announcement. Notable participants in the pre-IPO round included SBI Magnum Children’s Benefit Fund, SBI Optimal Equity Fund, SBI Healthcare Opportunities Fund, Neuberger Berman Emerging Markets Equity Fund, Neuberger Berman Europe Holdings LLC, and Neuberger Berman Strategic India Equity Master Fund Holdings Ltd.

Furthermore, entities such as High Conviction Fund – Series 1, Ashoka India Equity Investment Trust PLC, Think India Opportunities Master Fund LP, and DC Ikka Ltd also participated in the pre-IPO round.

In a proactive move, Jupiter had filed preliminary papers with SEBI back in May, signaling its intent to raise funds through an IPO. The offering comprises a combination of a fresh equity share issuance valued at up to Rs 615 crore and an offer-for-sale (OFS) of up to 44.5 lakh equity shares originating from the promoter group and other selling shareholders. As a result of the successful pre-IPO placement, the size of the fresh issue has been revised downward.

The capital generated from this debut public issue will be allocated for debt repayment and general corporate purposes, strengthening the company’s financial foundation.

Operating under the Jupiter brand, the hospital chain serves communities in Thane, Pune, and Indore, offering a cumulative bed capacity of 1,194 as of December 2022.

Leading the charge as lead managers for the IPO are ICICI Securities Ltd, Edelweiss Financial Services, and JM Financial.