Jupiter Life Line Hospitals Soars on Stock Market Debut with 30%+ Premium

18 Sep 2023 , 09:52 AM

Jupiter Life Line Hospitals, with an initial public offer (IPO) valued at Rs 869 crore, made an impressive debut on the stock market. The company’s shares debuted at a premium, listing at Rs 973 on NSE, representing a substantial 32.38% premium, and at Rs 960 on BSE, indicating a notable 30.61% premium.

During the IPO subscription period, which ran from September 6-8, the offering garnered significant interest from investors, with an overall subscription rate of 63.72 times. Qualified institutional buyers were the major contributors, oversubscribing their quota by a staggering 187.32 times. High net-worth individuals also showed strong support, bidding 34.75 times the allocated portion, while retail investors contributed with bids at 7.73 times their allocated shares.

The Mumbai-based company plans to utilize the net proceeds from the fresh issue primarily for repaying debt amounting to Rs 510.4 crore, with the remainder allocated for general corporate purposes. As of March FY23, the company had total borrowings of Rs 476.4 crore.

Jupiter Life Line Hospitals currently boasts a market capitalization of Rs 4,819 crore at the upper price band of Rs 735 per share. The company, promoted by Ajay Thakker, Ankit Thakker, and Western Medical Solutions LLP, demonstrated robust financial performance in FY23. It reported a profit of Rs 72.9 crore, marking a substantial 42.6% increase compared to the previous year. This growth was supported by a 21.7% year-on-year rise in revenue from operations, reaching Rs 892.5 crore. Additionally, the company’s EBITDA (earnings before interest, tax, depreciation, and amortization) surged by 31.2% to Rs 201.3 crore, and the EBITDA margin for FY23 expanded by 163 basis points to reach 22.55%.