Jupiter LifeLine Hospitals IPO - Review, Valuation & GMP Today

Jupiter Life Line Hospitals Limited - Complete Overview

Established in 2007, Jupiter Life Line Hospitals Limited is a prominent provider of comprehensive healthcare services in the Mumbai Metropolitan Area and the western region of India. With over 15 years of experience, Jupiter Life Line Hospitals has earned a reputation as a leading corporate quaternary care healthcare service provider in densely populated areas of western India.

Currently, Jupiter Life Line Hospitals operates three hospitals under the "Jupiter" brand, located in Thane, Pune, and Indore. These hospitals collectively offer a total of 1,194 beds and boast a medical staff of 1,306 doctors, including specialists, physicians, and surgeons, as of March 31, 2023.

Additionally, the company is actively involved in the development of a state-of-the-art multi-specialty hospital in Dombivli, Maharashtra. This facility is designed to accommodate more than 500 beds and construction commenced in April 2023.

One of the core principles guiding Jupiter Life Line Hospitals is a "patient-first" ideology. This means they prioritize the well-being of their patients by providing top-notch infrastructure, cutting-edge technology, and comprehensive support. They also embrace innovation and forward-thinking approaches to healthcare delivery. As of March 31, 2023, their hospitals offer over 30 key specialties.

According to a CRISIL report, the Thane and Indore hospitals are noteworthy for offering neuro-rehabilitation services through a dedicated robotic and computer-assisted neuro-rehabilitation centre. Moreover, the company operates one of the few multi-organ transplant centres in Thane.

Each of the hospitals in Thane, Pune, and Indore has received certifications from the National Accreditation Board for Hospitals & Healthcare Providers ("NABH") and accreditation in the field of medical testing from the National Accreditation Board for Testing and Calibration Laboratories ("NABL"). The Thane Hospital has also achieved the NABH Safe-I certification and the NABH 'Nursing Excellence' accreditation in the past.

In terms of patient volume, which includes both inpatients and outpatients, the hospitals served 447,573, 645,446, and 773,937 individuals in the fiscal years 2021, 2022, and 2023, respectively.

 

What does the company do? 

Jupiter Life Line Hospitals Limited is a healthcare provider specializing in multiple medical disciplines and offering tertiary and quaternary healthcare services in the Mumbai Metropolitan Area and the western region of India.

 

 

IPO Overview

The Jupiter Life Line Hospitals Limited IPO date is scheduled from September 6 to September 8, 2023. This IPO will be launched on both the NSE and BSE.

The Jupiter Life Line Hospitals Limited IPO shares price is set at Rs.695 to Rs.735 per share. The total issue size for this IPO is Rs.869.08 Crores. 

Of this total issue size, the company has allocated 50% for institutional investors, 15% for non-institutional investors, and 35% for retail investors.

 

Jupiter Life Line Hospitals Limited IPO timetable (Tentative)

EVENTS	DATE
IPO Opening Date	6 September 2023
IPO Closing Date	8 September 2023
IPO Allotment Date	13 September 2023
Refund initiation	14 September 2023
IPO Listing Date	18 September 2023

 

Jupiter Life Line Hospitals Limited IPO Details

IPO Opening & Closing Date	6 September to 8 September 2023
Face Value	Rs.10 Per Share
Issue Price	Rs. 695 to Rs. 735 Per Share
Lot Size	20 Shares
Price of 1 Lot	Rs. 14,700
Issue Size	11,824,163 Shares (aggregating up to Rs. 869.08 Cr)
Offer for Sale	4,450,000 Shares of Rs.10 (aggregating up to Rs. 327.08 Cr)
Fresh Issue	7,374,163 Shares (aggregating up to Rs. 542.00 Cr)
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Kfin Technologies Ltd.

 

Jupiter Life Line Hospitals Limited IPO Lot Details

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lot
Minimum Lot Investment (HNI)	14 Lot
Maximum Lot Investment (HNI)	68 Lot

 

Jupiter Life Line Hospitals Limited IPO Reservation

Institutional Share Portion	50%
Non-Institutional Share Portion	15%
Retail Share Portion	35%

 

Company Financial

Amount in Crores

Period	FY - 21	FY - 22	FY - 23
Total Assets	788.91	908.70	985.53
Total Revenue	490.27	737.14	902.96
PAT	-2.30	51.13	72.91
Net Worth	246.44	288.43	363.91
Total Borrowings	425.52	495.25	468.63

 

Revenue breakup from each of the three hospitals

(Amount in million)

Hospital	FY 21	FY 22	FY 23
Thane	3,135.94	4,236.23	4,835.51
Pune	1,475.02	2,336.56	3,037.71
Indore	250.68	758.44	1,052.21
Total	4,861.64	7,331.23	8,925.43

 

Objective of the Issue

The funds raised by the issue will be utilized for the following objectives:

• Repaying or prepaying, either fully or partially, the borrowings obtained from banks by our company and significant subsidiary.
• Meeting general corporate requirements.

 

Promoters and Management of Jupiter Life Line Hospitals Limited

The key promoters of the company include Dr Ajay Thakker, Dr Ankit Thakker, and Western Medical Solutions LLP.

Pre-issue Promoter shareholding	40.69%
Post-issue Promoter shareholding

 

Peer Comparison

According to the Jupiter Life Line Hospitals DRHP, the following are the listed peers of the company

Company Name	Total income for Fiscal 2023 (Rs. in million)	P/E	EPS (Diluted) (Rs.)	Current market price
Jupiter Life Line Hospitals Limited	9,029.63	-	12.95	-
Apollo Hospitals Enterprise Limited	167,028.00	84.64	56.97	4,822.00
Fortis Healthcare Limited	63,593.49	40.26	7.80	314.05
Max Healthcare Institute Limited	47,018.40	45.97	11.36	522.20
Narayana Hrudayalaya Limited	45,902.10	33.14	29.85	989.20
Global Health Limited	27,591.63	53.70	12.57	675.00
Krishna Institute of Medical Sciences Limited	22,235.50	45.09	42.03	1,895.00

 

IPO's Valuations

The Jupiter Life Line Hospitals Limited IPO price range is Rs. 695 to Rs. 735 per share, with an EPS of Rs 12.95 per share. If we consider the upper price band of the upcoming IPO, the P/E ratio of the share stands at approximately 56.

 

Dividend Policy 

The company distributed a dividend of Rs. 1 per share in the fiscal year 2023. However, it's important to note that future dividend payments are not guaranteed to be the same, and there is no assurance that dividends will be declared or paid in the future.

 

IPO's Strengths 

• A prominent multi-speciality tertiary and quaternary healthcare provider, boasting a track record of more than 15 years, well-established brand recognition, and extensive clinical expertise.
• Operating under an 'All-hub-no-spoke' model, the company places a strong emphasis on delivering high-quality patient care, backed by cutting-edge infrastructure and advanced technological capabilities.
• Demonstrated capability to attract and retain highly skilled and experienced healthcare professionals, contributing to the organization's success.
• A proven history of operational and financial excellence, characterized by a diversified revenue portfolio.
• Benefiting from a proficient and qualified professional management team that prioritizes environmental, social, and governance initiatives.

 

IPO Weaknesses 

• The company's revenue is heavily reliant on its Thane hospital.
• Operating within a highly regulated industry, the company is obliged to obtain, renew, and maintain various statutory and regulatory permits, accreditations, and licenses, while adhering to safety, health, environmental, labour, and other governmental regulations.
• Significant expenses are incurred by the company, encompassing medical equipment costs, labour expenditures, infrastructure upkeep and repair expenses, ancillary items, and pharmaceutical costs.
• Legal actions have been initiated against the company concerning the land where its Thane Hospital is located. 
• There are ongoing litigations involving the company, its promoters, directors, and subsidiaries.
• The healthcare industry is susceptible to pricing regulations and government reforms, which may introduce uncertainty and potentially impact the company's operations negatively.
• The company reported losses in Fiscal 2021 and might continue to do so in the future.
• Competition from other healthcare service providers is a notable challenge the company faces.
• Operational, reputational, medical, and legal claims, as well as regulatory actions and other liabilities, are potential risks that the company must contend with.

 

 

IPO GMP

Jupiter Life Line Hospitals IPO GMP today is Rs. 215.

 

Conclusion 

Jupiter Life Line Hospitals is a reputable provider of multi-speciality tertiary and quaternary healthcare services. The hospital is renowned for its state-of-the-art healthcare offerings, including cutting-edge diagnostic services.

While the company has encountered negative cash flows in the past, it has managed to turn a profit in FY 23 and is actively pursuing expansion initiatives. This suggests a promising future for the company, and investors may consider bidding for the issues after conducting a thorough analysis to optimize their investment outcomes. 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP

 

 

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