Shares of Jupiter Life Line Hospitals, a multi-specialty hospital chain operator, made a stellar debut on the domestic bourses on Monday, in an otherwise bearish broader market. The share price of the health care services provider listed at ₹973 apiece on the NSE, a premium of 32.4% over the IPO price of ₹735. On the BSE, the stock opened at ₹960, up 30.6% against the issue price.

Post listing, the healthcare stock gained as much as 40% to hit a high of ₹1,028.50 on the NSE, while it touched ₹1,042.35 level on the BSE. The market capitalisation climbed to ₹6,697 crore.

The strong listing of Jupiter Hospital shares was in line with D-Street expectations as the stocks were trading at a premium of ₹233 in the grey market, which indicated that investors were willing to pay more than the issue price.

“The IPO was well-received by investors, with the issue being subscribed 64.8 times which led to such a good listing gain. Investors who participated in the IPO can now book profit while those who want to hold it long term may maintain a stop loss stop loss at around ₹875,” says Anubhuti Mishra, Equity Research Analyst at Swastika Investmart Ltd.

The three-day IPO of Jupiter Life Line Hospital, which opened between September 6-8, received an overwhelming response from investors. The ₹869-crore IPO was subscribed 63.72 times on the back of strong demand from qualified institution buyers (QIBs). The quota reserved for QIBs was booked 187 times, while portions for non-institutional investors (NIIs) and retailers were subscribed 34.75 times, and 7.73 times, respectively.

The IPO of the hospital chain operator comprised fresh issuance of shares worth ₹542 crore, and an offer for sale (OFS) worth ₹327 crore by promoters and existing shareholders. The issue was priced in the range of ₹695-735.

The lot size of the IPO was 40 equity shares and its multiples thereafter, which means the minimum investment amount for the application would be ₹14,700.  The company had reserved up to 75% of the issue for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and the remaining 10% for retail investors.

The company intends to use capital raised from fresh issue of equity shares to repay debts worth ₹464 crore.

Ahead of the IPO, Jupiter Lifeline Hospital raised ₹261 crore from anchor investors on September 5.

Formed in 2007, Jupiter Life Line Hospitals is a multi-specialty tertiary and quaternary healthcare provider, which operates in Thane, Pune, and Indore under the Jupiter brand. With a strategic focus on the western region of India, the company had a total operational bed capacity of 1,194 beds, and 1,306 doctors including specialists, physicians, and surgeons, as of March 31, 2023. The company is developing a multi-specialty hospital in Dombivli, Maharashtra, with a capacity of over 500 beds. The construction of the hospital started in April 2023.

DISCLAIMER: The views and opinions expressed by investment experts on are either their own or of their organisations, but not necessarily that of and its editorial team. Readers are advised to consult certified experts before taking investment decisions.

Follow us on Facebook, X, YouTube, Instagram and WhatsApp to never miss an update from Fortune India. To buy a copy, visit Amazon.