Updated: September 1, 2023
Jupiter Lifeline Hospitals Limited plans to launch an initial public offering (IPO) with a subscription period beginning September 6, 2023. As an investor, you may be wondering if the Jupiter Lifeline Hospitals IPO is worth your investment. This comprehensive article provides all the important details, dates, positive factors, risk factors and an in-depth review of his IPO of Jupiter Lifeline Hospital. Based on this, investors can decide whether to buy/subscribe to this his IPO.
Jupiter Lifeline Hospital IPO Details
| IPO start date | September 6, 23 |
| IPO deadline | September 8, 23 |
| IPO Listing Date | September 18, 23 |
| Kind of problem | Book Built Issue IPO |
| face value | 10 rupees per share |
| IPO price range | Rs.695 to Rs.735 per share |
| lot size | 20 shares |
| Minimum order quantity | 20 shares |
| exhibition place | BSE and NSE |
| total issue size | Rs.86.908 billion |
| Latest issue | Rs.542 million |
| OFS | Rs.32.708 billion |
Jupiter Hospital IPO dates and schedule
| IPO start date | September 6, 23 |
| IPO closes on | September 8, 23 |
| Basis for allocation | September 13, 2023 |
| Initiate refund | September 14, 23 |
| Credit of shares to Demat | September 15, 23 |
| Listing date | September 18, 23 |
| UPI Obligation Verification Deadline Time | September 8, 23 |
About Jupiter Lifeline Hospitals Co., Ltd.
Established in 2007, Jupiter Life Line Hospitals Ltd is a prominent multi-disciplinary tertiary and quaternary healthcare provider primarily serving the Mumbai metropolitan area (MMR) and the western regions of India.
The company operates three hospitals under the ‘Jupiter’ brand in Thane, Pune and Indore, with a total of 1,194 operating beds and 1,306 hospitals, including specialists, internists and surgeons, as of March 31, 2023. Proud of our team of doctors. .
Additionally, the company is building a state-of-the-art multi-specialty hospital with over 500 beds in Dhonbiburi, Maharashtra.
subject of the problem
IPO offerings include both Offer for Sale (OFS) and new offerings.
Under OFS, that amount is paid to selling shareholders.
New questions are used for:
- Full or partial repayment/advance of bank borrowings by the Company and its subsidiaries.
- General corporate purposes.
Finance of Jupiter Lifeline Hospitals Limited
| Fiscal year end/end (amounts in billions) | |||
| detail | 21st year | 22nd year | 23rd year |
|---|---|---|---|
| assets | 788.9 | 908.7 | 985.5 |
| Earnings | 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 |
| Borrowing amount | 425.5 | 495.3 | 468.6 |
Jupiter Lifeline Hospital IPO Price Assessment
The IPO price range ranges from Rs.695 to Rs.735 per share.
- Considering last year’s 2023 EPS was Rs 12.95, the P/E ratio is 57x.
- Taking into account the weighted EPS of Rs 9.62 over the last 3 years, the PER is 76x.
- Street Jupiter Hospital IPO RHP, and Apollo Hospitals, which trade at 84x (highest) and Fortis Healthcare at 40x (lowest), with an industry average of 50x. So the 57x to 76x P/E IPO price range is expensive.
Jupiter Lifeline Hospital IPO GMP
Although no high-profile deals have taken place, some comments on Jupiter Hospital’s IPO GMP in Chittorgarh suggest prices of Rs 54 to Rs 84 per share.
Jupiter Lifeline Hospital IPO – a positive factor for investment
- Diverse Healthcare Services: Jupiter Life Line Hospitals has carved out a niche in the healthcare industry by providing specialty services such as neurorehabilitation and multi-organ transplantation.
- Solid revenue growth: The company is experiencing impressive revenue growth in 2021-23, reflecting its ability to meet the region’s growing medical needs.
- Accreditation and Certification: All Jupiter Lifeline Hospital facilities in Thane, Pune and Indore are accredited by the National Board for Accreditation of Hospitals and Healthcare Providers (NABH) to ensure high quality medical services.
Jupiter Lifeline Hospital IPO Risk Factors
- No benefit from the OFS part: The OFS portion of the IPO will be paid to the selling shareholders and the company will not receive any benefit.
- Dependence on Thane Hospital: A significant portion of the company’s revenue is dependent on Thane Hospital. Any adverse impact on this facility could have far-reaching financial implications for the company.
- Regulatory challenges: The healthcare industry is highly regulated, and violations or changes to regulations can pose risks to your company’s operations.
- High operating costs: Jupiter Lifeline Hospital faces significant costs associated with maintaining medical equipment, staff salaries, and infrastructure. Failure to manage these costs effectively can impact profitability.
Jupiter Lifeline Hospital IPO Review and Conclusion
You may be wondering whether to invest in this IPO or avoid it.
On the positive side, the company specializes in services such as neurorehabilitation and multi-organ transplantation, which makes it stand out in the healthcare field. The diversification of revenue sources and significant revenue growth from FY21 to FY23 demonstrate the company’s ability to adapt to changing healthcare demands. Accreditation by NABH reflects our commitment to quality healthcare.
On the downside, the company’s reliance on Thane Hospital for most of its revenue exposes its vulnerability. Stringent industry regulations can create compliance challenges. Rising operating costs for medical equipment, staff and infrastructure can impact profitability. There may be capital utilization issues as the IPO proceeds are allocated to repay the debt and the profits from the OFS are limited. The IPO price is also expensive.
There is no rush to invest in this IPO right now. We may reconsider investing in this IPO if the stock is available at a discounted price after listing.
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Suresh KP is the founder of Myinvestmentideas. He is his NISM Certified – Investment Advisor and he is a NISM Certified – Research Analyst. He has been analyzing financial markets for the past 20 years. He can be reached at suresh@myinvestmentideas.com.
