Jupiter Life Line Hospitals IPO – In-Depth Analysis and Review

Jupiter Life Line Hospitals Limited is all set to launch its Initial Public Offering (IPO) with the subscription period commencing on September 6, 2023. As an investor, you might be wondering whether Jupiter Life Line Hospitals IPO is a worthy investment or not. In this comprehensive article, we will provide you with all the key details, dates, positive factors, risk factors, and a detailed review of the Jupiter Life Line Hospitals IPO. Based on this investors can take decision to buy / subscribe this IPO or not

Jupiter Life Line Hospitals IPO Details

IPO Opening Date 06-Sep-23
IPO Closing Date 08-Sep-23
IPO Listing Date 18-Sep-23
Issue Type Book Built Issue IPO
Face Value Rs 10 per equity share
IPO Price band Rs 695 to Rs 735 per equity share
Lot Size 20 Shares
Min Order Quantity 20 Shares
Listing at BSE and NSE
Total Issue Size Rs. 869.08 Crores
    Fresh issue     Rs. 542 Crores
    OFS     Rs. 327.08 Crores

Jupiter Hospital IPO Dates and Timetable

IPO Opens on 06-Sep-23
IPO Closes on 08-Sep-23
Basis of Allotment 13-Sep-23
Initiation of Refunds 14-Sep-23
Credit of Shares to Demat 15-Sep-23
Listing Date 18-Sep-23
Cut-off time for UPI mandate confirmation 08-Sep-23

About Jupiter Life Line Hospitals Ltd

Jupiter Life Line Hospitals Ltd, established in 2007, is a prominent multi-specialty tertiary and quaternary healthcare provider primarily serving the Mumbai Metropolitan Area (MMR) and the western region of India.

The company operates three hospitals under the “Jupiter” brand located in Thane, Pune, and Indore, boasting a combined operational bed capacity of 1194 beds and a team of 1,306 doctors, including specialists, physicians, and surgeons, as of March 31, 2023.

Additionally, the company is in the process of constructing a state-of-the-art multi-specialty hospital in Dombivli, Maharashtra, which is anticipated to house over 500 beds.

Objects of the Issue

The objects of the IPO issue contains both Offer for Sale (OFS) and fresh issue.

Under OFS, the amount goes to selling share holders.

Fresh issue would be used for the following objectives:

  • Repayment/pre-payment, in full or part, of borrowings availed from banks by the company and aterial Subsidiary.
  • General corporate purposes.

Jupiter Lifeline Hospitals Limited Financials

Financial Year ending / Period ending (Amt in Crores)
Particulars FY21 FY22 FY23
Assets 788.9 908.7 985.5
Revenue 490.3 737.1 903.0
Profit After Tax -2.3 51.1 72.9
Profit % -0.47% 6.94% 8.07%
Net Worth 246.4 288.4 363.9
Total Borrowing 425.5 495.3 468.6

Jupiter Life Line Hospitals IPO Price Valuation

Its IPO price band is Rs 695 to 735 per share.

  • If we consider last year FY23 EPS of Rs 12.95, P/E ratio works out to be 57x
  • If we consider Last 3 Years Weighted EPS of Rs 9.62, P/E ratio works out to be 76x
  • As per Jupiter Hospital IPO RHP, the listed peers like Apollo Hospitals trading at P/E 84x (Highest) and Fortis Healthcare is trading at P/E of 40x (Lowest) and industry average P/E is 50x. Hence, the IPO Price band at P/E of 57x to 76x is over-priced.

Jupiter lifeline Hospital IPO GMP

While there are no sigificant trades happening, some comments about Jupiter Hospital IPO GMP on Chittorgarh indicate as Rs 54 to Rs 84 per share.

Jupiter Life Line Hospitals IPO – Positive Factors to invest

  • Diverse Healthcare Services: Jupiter Life Line Hospitals has carved a niche in the healthcare industry by offering specialized services such as neuro-rehabilitation and multi-organ transplantation.
  • Robust Revenue Growth: The company has witnessed impressive revenue growth from FY21 to FY23, reflecting its ability to cater to the growing healthcare needs of the region.
  • Accreditations and Certifications: All of Jupiter Life Line Hospitals’ facilities in Thane, Pune, and Indore are accredited by the National Accreditation Board for Hospitals & Healthcare Providers (NABH), ensuring high-quality healthcare services.

Jupiter Life Line Hospitals IPO Risk Factors

  • No benefit from OFS portion: OFS portion of the IPO goes to selling share holders and company would not benefit anything.
  • Dependency on Thane Hospital: A significant portion of the company’s revenue relies on its Thane hospital. Any adverse impact on this facility could have far-reaching consequences on the company’s financials.
  • Regulatory Challenges: The healthcare industry is tightly regulated, and any non-compliance with regulations or changes in these regulations could pose a risk to the company’s operations.
  • High Operational Costs: Jupiter Life Line Hospitals faces substantial expenses related to medical equipment, staff salaries, and infrastructure maintenance. Inability to manage these costs efficiently could impact profitability.

Jupiter LifeLine Hospitals IPO Review and Conclusion

You might be wondering whether should you invest in this IPO or avoid.

On the positive side, company’s specialization in services like neuro-rehabilitation and multi-organ transplantation sets it apart in the healthcare sector. With diversified revenue streams and strong revenue growth from FY21 to FY23, the company displays its adaptability to changing healthcare demands. Accreditation by NABH reflects its dedication to high-quality healthcare.

On the negative side, company’s dependence on the Thane hospital for a significant revenue portion exposes vulnerability. Stringent industry regulations could pose compliance challenges. Elevated operational costs for medical equipment, staff, and infrastructure could affect profitability. IPO proceeds allocated for borrowings repayment and the limited benefit from OFS might raise capital utilization questions.  The IPO price is also over priced.

There is no hurry to invest in this IPO now. If post listing, the share price is available at discounted price, one may relook at investing in this IPO.

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Suresh KP

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