Jupiter Hospitals IPO subscribed 87% on day 1

6 Sep 2023 , 06:47 PM

On the opening day of Jupiter Life Line Hospitals’ IPO, investors demonstrated a strong interest, with a subscription rate of 87%. Bids were placed for 74.07 lakh shares out of the total issue size of 84.97 lakh shares.

Retail investors and high-net-worth individuals displayed active participation, subscribing at rates of 1.11 times and 1.43 times their allotted quotas, respectively. The allotment quotas for these categories were set at 35% and 15% of the total issue size, respectively. In contrast, qualified institutional investors bid for only 1% of the shares reserved for them, which constituted 50% of the IPO.

The Mumbai-based multi-specialty tertiary and quaternary healthcare provider aims to raise Rs 869.08 crore through its maiden public issue, with the upper price band set at Rs 735 per share. The IPO comprises a fresh issuance of shares valued at Rs 542 crore and an offer-for-sale of shares worth Rs 327.08 crore by 10 selling shareholders, including the promoter group.

Proceeds from the fresh issue will primarily go towards debt repayment, totaling Rs 510.4 crore, with the remaining funds allocated for general corporate purposes. As of March FY23, the company had total borrowings of Rs 476.4 crore.

The IPO subscription window is set to close on September 8, allowing investors to continue participating in this healthcare provider’s growth story.