Jupiter Life Line Hospital shares surge up to 40% on debut

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.

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