Jupiter Life Line Hospitals IPO Review: Jupiter Life Line Hospitals is coming up with its Initial Public Offering. The IPO will open for subscription on September 6, 2023, and close on September 8, 2023.

In this article, we will look at Jupiter Life Line Hospitals IPO Review 2023 and analyze its financials, strengths, weaknesses, GMP & more. Keep reading to find out! 

Jupiter Life Line Hospitals IPO – About The Company

Jupiter Life Line Hospitals Limited, incorporated in 2007, is a multi-specialty tertiary and quaternary healthcare provider in the Mumbai Metropolitan Area (MMR) and India’s western region.

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As of FY23, it was operating as a corporate quaternary care healthcare service provider in the western regions of India, with three hospitals under the “Jupiter” brand in Thane, Pune, and Indore, with a total operational bed capacity of 1194 beds and 1,306 doctors including specialists, physicians, and surgeons.

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According to the CRISIL Report, the company’s Thane and Indore hospitals are among the few in India’s western region to offer neuro-rehabilitation treatments via a specialized robotic and computer-assisted neuro-rehabilitation centre. Furthermore, it operates one of Thane’s few multi-organ transplant centres. 

In Fiscal 2023, the company’s inpatient and outpatient revenue is distributed across hospitals, with Thane, Pune, and Indore hospitals accounting for 54.18%, 34.03%, and 11.79% of revenue from operations, respectively.

Jupiter Life Line Hospitals IPO Review – Industry Overview

West India’s healthcare market is predicted to increase at a 14%-16% CAGR from ₹1.05-1.15 trillion in FY22 to ₹2.15-2.25 trillion in FY27. Lower penetration of chained hospitals, increasing average revenue per occupied bed figures of private players in the region, the region’s high population density, and increasing penetration of health insurance in the region are expected to drive the growth of India’s western healthcare delivery market. The Western region’s improved access to health insurance will also contribute to the expansion of the healthcare delivery market.

Jupiter Life Line Hospitals IPO Review – Financials

If we look at the financials of Jupiter Life Line Hospitals we find out that their assets have increased from ₹788.91 crores in March 2021 to ₹985.53 crores in March 2023. 

Their revenues also follow a similar trend, nearly doubling from ₹490.27 crores in March 2021 to ₹902.96 crores in March 2023. While the company faced a net loss of ₹2.30 crores, it reprised itself in the following years and reported a net profit of ₹72.91 crores in FY23. The profits reported in FY23 were at a margin of 8.07% on its revenue.

In terms of return ratios, it has a ROE of 20.03% and a RoCE of 20.94% as of FY23. These ratios suggest a good return on shareholders’ capital and a good use of company resources.

Financial Metrics 

Jupiter Life Line Hospitals IPO Review - Financials
(Source: RHP of the company)

Competitors of the Company

The table image will give you a list of the company’s listed peers along with its revenue and patient details:

Competitors of Jupiter Life Line
(Source: RHP of the company)

Strengths of the Company

  • The company has advanced levels of hospitals which are highly specialised and not widely accessible, located in the populated micro markets in the western region of India
  • Each of the company’s three hospitals is a full-service hospital, operating on an ‘all-hub-no-spoke’ model where each hospital is independent, individually well-equipped to serve the healthcare needs of the patients, right from diagnostics to surgery and rehabilitation.
  • The company attracts and retains skilled and experienced healthcare professionals which helps it maintain its standard of quality healthcare services.
  • The company’s management including the founder has good experience in the field which helps them maintain its operational and administrative efficiency.

Weaknesses of the Company

  • Not being able to attract or keep healthcare professionals can greatly affect a company’s operations.
  • The company operates in a highly regulated industry. Any regulatory changes or a failure to comply with any regulations can adversely affect its business.
  • The company has high expenses in relation to medical equipment costs, manpower costs, infrastructure maintenance and repair costs, ancillary items and pharmaceuticals. The inability to attain these at a reasonable cost can impact its profitability.
  • The company has certain public interest litigations in relation to the land on where Thane Hospital is situated. Proceedings against the company’s favour can adversely impact its business.
  • The company’s affordable healthcare depends on patient volume, occupancy rates, project cost management, and capital efficiency. Any increase in such costs could adversely affect its business, financial condition and results of operations.

Jupiter Life Line Hospitals IPO Review – GMP

The shares of Jupiter Life Line Hospitals traded at a premium of 29.66% in the grey market on September 5th, 2023. The shares tarded at Rs 953. This gives it a premium of Rs 218 per share over the cap price of Rs 735.

Key IPO Information

ParticularsDetails
IPO Size₹869.08 Cr
Fresh Issue₹542.00 Cr
Offer for Sale (OFS)₹327.08 Cr
Opening dateSeptember 6, 2023
Closing dateSeptember 8, 2023
Face Value₹10 per share
Price Band₹695 to ₹735 per share
Lot Size20 Shares
Minimum Lot Size1(20 shares)
Maximum Lot Size13(260 shares)
Listing DateSeptember 18, 2023

Promoters: Dr. Ajay Thakker, Dr. Ankit Thakker and Western Medical Solutions Llp

Book Running Lead Manager: ICICI Securities Limited, Nuvama Wealth Management Limited, JM Financial Limited.

Registrar to the Offer: KFin Technologies Limited

The Objective of the Issue

The net proceeds from this issue will be utilized for the following purposes:

  • Complete or part repayment/prepayment of certain borrowings availed by the company and Material Subsidiary.
  • General corporate purposes.

In Closing

In this article, we looked at the details of Jupiter Life Line Hospitals. Through this article, we can conclude that though the company operates in limited regions, it has delivered good results during the recent financial years. Although, as investors, it is our responsibility to check that the company’s performance will consistently increase in the future

What do you think the future holds for the company? Are you applying for the IPO? Let us know in the comments below.

Written By Aaron Vas

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