Jupiter Life Line Hospitals IPO booked 14.3x on day 3 so far, issue closes for bidding today
Jupiter Life Line Hospitals is selling its shares in the range of Rs 695-735 apiece during the three-day bidding process and investors can make a bid of a minimum of 20 equity shares and its multiples thereafter.
- Sep 8, 2023,
- Updated Sep 8, 2023 1:55 PM IST
The Rs 869-crore initial public offering (IPO) of Jupiter Life Line Hospitals continued to witness a decent response from the investors during the third and final day of the bidding process as institutional investors joined the party. According to BSE data, the investors made bids for 12,14,55,820 equity shares, or 14.3 times, compared to the 84,97,169 equity shares offered for the subscription by 1.30 pm on Friday, September 8. The issue, which had opened on Wednesday, September 6, will close for bidding today.
Jupiter Life Line Hospitals is selling its shares in the range of Rs 695-735 apiece during the three-day bidding process and investors can make a bid of a minimum of 20 equity shares and its multiples thereafter. The issue includes a sale of fresh equity shares worth Rs 542 crore, while an offer-for sale (OFS) of up to 44.50 lakh equity shares worth Rs 327.08 crore.
The allocation for qualified institutional bidders (QIBs) fetched 25.83 times bids, while the portion of non-institutional bidders saw a subscription of 20.26 times. However, the portion reserved for retail investors was subscribed 5.43 times as of the same time. Jupiter Life Line Hospitals is among multi-specialty tertiary and quaternary healthcare providers in the Mumbai Metropolitan Area and western region of India with a total bed capacity of 1,194 hospital beds across three hospitals as of March 31. Jupiter Life Line Hospitals currently operates three hospitals in Thane, Pune and Indore under the 'Jupiter' brand. Ahead of its public issue, the company raised Rs 260.72 crore from 39 anchor investors, including Abu Dhabi Investment Authority, Goldman Sachs, Nomura Funds, Government of Singapore, HSBC Global and Fidelity Funds, among others, by allocating 35.47 lakh equity shares at an issue price of Rs 735 apiece. Brokerage firms are mostly positive on the stock and suggested a bid for the issue amid the advantage of regional dominance, operational efficiency, Jupiter Hospital has demonstrated good financial performances among peers. However, they also flagged dependence on Thane hospital, change in government policies, and delay in upcoming projects may dent its prospects. Two major growth drivers for the company are ramping up of Indore facility -231 beds, currently at 40 per cent occupancy and ARPOB of ~Rs 39,000. This is expected to increase and reach the consolidated group levels going forward. Secondly, 500 bedded Dombivli hospital to be operationalized in the next 2-3 years, said Dalal & Broacha Stock Broking. "The object of the issue is to pay its debt which currently stands at Rs 470 crore. At the upper price band of Rs 735, Jupiter is valued at 25.6 times EV/EBITDA on a TTM basis. We believe the IPO is undervalued as the peer companies trade at more than 30 times EV/EBITDA multiple. We recommend 'subscribe' for the IPO," it added. The company has reserved half of the issue, or 50 per cent equity shares, for qualified institutional bidders, while non-institutional investors will get 15 per cent of the allocation in the primary offering. Remaining 35 per cent shares shall be reserved for the retail investors of the issue. The company is valued at a FY23 PE multiple of 66.1 times, EV/Bed of Rs 4.8 crore, at the upper price band on post-issue capital. The IPO looks fairly valued across various valuation parameters when compared with its peers. With decent return ratios and margins, the risk reward ratio for long-term investors looks favourable, said SBICap Securities, with a 'subscribe for long-term' tag. Amid advantage of regional dominance, operational efficiency, Jupiter Hospital has demonstrated good financial performances among peers. It has the high level ARPOB. Hence, based on current performance, we assign 'subscribe' for listing gain, said SMIFS. "Jupiter Hospital is demanding an EV/EBITDA multiple of 22 times, which is at par with peer Yatharth Hospitals." ICICI Securities, Nuvama Wealth Management and JM Financial are the lead managers to the issue, while Kfin Technologies India has been appointed as the registrar to the issue. Shares of the company will be listed at both exchanges- BSE and NSE- with September 18, Monday, as the tentative date of listing.Disclaimer: Under no circumstances should any person at this platform make trading decisions based solely on the information discussed herein. You should consult a qualified broker or other financial advisor prior to making any actual investment or trading decisions. All information is for educational and informational use only. Business Today does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same.
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The Rs 869-crore initial public offering (IPO) of Jupiter Life Line Hospitals continued to witness a decent response from the investors during the third and final day of the bidding process as institutional investors joined the party. According to BSE data, the investors made bids for 12,14,55,820 equity shares, or 14.3 times, compared to the 84,97,169 equity shares offered for the subscription by 1.30 pm on Friday, September 8. The issue, which had opened on Wednesday, September 6, will close for bidding today.
Jupiter Life Line Hospitals is selling its shares in the range of Rs 695-735 apiece during the three-day bidding process and investors can make a bid of a minimum of 20 equity shares and its multiples thereafter. The issue includes a sale of fresh equity shares worth Rs 542 crore, while an offer-for sale (OFS) of up to 44.50 lakh equity shares worth Rs 327.08 crore.
The allocation for qualified institutional bidders (QIBs) fetched 25.83 times bids, while the portion of non-institutional bidders saw a subscription of 20.26 times. However, the portion reserved for retail investors was subscribed 5.43 times as of the same time. Jupiter Life Line Hospitals is among multi-specialty tertiary and quaternary healthcare providers in the Mumbai Metropolitan Area and western region of India with a total bed capacity of 1,194 hospital beds across three hospitals as of March 31. Jupiter Life Line Hospitals currently operates three hospitals in Thane, Pune and Indore under the 'Jupiter' brand. Ahead of its public issue, the company raised Rs 260.72 crore from 39 anchor investors, including Abu Dhabi Investment Authority, Goldman Sachs, Nomura Funds, Government of Singapore, HSBC Global and Fidelity Funds, among others, by allocating 35.47 lakh equity shares at an issue price of Rs 735 apiece. Brokerage firms are mostly positive on the stock and suggested a bid for the issue amid the advantage of regional dominance, operational efficiency, Jupiter Hospital has demonstrated good financial performances among peers. However, they also flagged dependence on Thane hospital, change in government policies, and delay in upcoming projects may dent its prospects. Two major growth drivers for the company are ramping up of Indore facility -231 beds, currently at 40 per cent occupancy and ARPOB of ~Rs 39,000. This is expected to increase and reach the consolidated group levels going forward. Secondly, 500 bedded Dombivli hospital to be operationalized in the next 2-3 years, said Dalal & Broacha Stock Broking. "The object of the issue is to pay its debt which currently stands at Rs 470 crore. At the upper price band of Rs 735, Jupiter is valued at 25.6 times EV/EBITDA on a TTM basis. We believe the IPO is undervalued as the peer companies trade at more than 30 times EV/EBITDA multiple. We recommend 'subscribe' for the IPO," it added. The company has reserved half of the issue, or 50 per cent equity shares, for qualified institutional bidders, while non-institutional investors will get 15 per cent of the allocation in the primary offering. Remaining 35 per cent shares shall be reserved for the retail investors of the issue. The company is valued at a FY23 PE multiple of 66.1 times, EV/Bed of Rs 4.8 crore, at the upper price band on post-issue capital. The IPO looks fairly valued across various valuation parameters when compared with its peers. With decent return ratios and margins, the risk reward ratio for long-term investors looks favourable, said SBICap Securities, with a 'subscribe for long-term' tag. Amid advantage of regional dominance, operational efficiency, Jupiter Hospital has demonstrated good financial performances among peers. It has the high level ARPOB. Hence, based on current performance, we assign 'subscribe' for listing gain, said SMIFS. "Jupiter Hospital is demanding an EV/EBITDA multiple of 22 times, which is at par with peer Yatharth Hospitals." ICICI Securities, Nuvama Wealth Management and JM Financial are the lead managers to the issue, while Kfin Technologies India has been appointed as the registrar to the issue. Shares of the company will be listed at both exchanges- BSE and NSE- with September 18, Monday, as the tentative date of listing.Disclaimer: Under no circumstances should any person at this platform make trading decisions based solely on the information discussed herein. You should consult a qualified broker or other financial advisor prior to making any actual investment or trading decisions. All information is for educational and informational use only. Business Today does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same.
Also read: Mazagon Dock shares in news on signing MSRA with US government. Ke