Jupiter Life Line Hospitals IPO: Latest Subscription Status, GMP Here; Apply Or Not?

Jupiter Life Line Hospitals IPO: Multi-specialty tertiary and quaternary healthcare provider, Jupiter Life has launched its Rs 869 crore worth initial public offering (IPO) on exchanges on Wednesday. In less than three hours of its opening, 30% of the total size has been subscribed with a strong appetite from retail investors. Brokerage Nirmal Bang believes that the IPO is reasonably valued, and recommended to subscribe. The proposed equity share of the IPO will be listed on BSE and NSE.

At around 12.39 pm, the IPO received bids of 25,61,360 equity shares cumulatively on BSE and NSE, against the offered size of 84,97,169 equity shares -- hence, subscribing by 30% of the total size.

The retail individual investors (RII) subscribed to 47% of the reserved portion, while the portion for non-institutional investors subscribed to 30% of the reserved size. However, qualified institutional buyers (QIBs) have shown dull demand on the first day.

Of the total size, 50% is reserved for QIBs, while 35% is kept for retail investors, and the rest of the 15% portion is reserved for NIIs.

Jupiter Life Line's IPO is 100% book building, comprising a fresh issue worth Rs 542 crore and an offer for sale (OFS) up to Rs 327 crore at the upper price band. The company plans to utilise the proceeds of the fresh issue to repay the borrowings availed from banks by JLHL and its material subsidiary.

The price band for the IPO is Rs 695 to Rs 735 per share having a face value of Rs 10 each. The bid lot size is 20 Equity Shares and in multiples thereof.

On September 6, the grey market premium (GMP) of Jupiter Life Line was Rs 276 apiece. As per the TopShareBrokers website, with the price band of 735.00, Jupiter Life Line Hospitals IPO's estimated listing price is ₹1011 (cap price + today's GMP). The expected percentage gain/loss per share is 37.55%.

Companies like ICICI Securities Limited, Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited) and JM Financial Limited are the book-running lead managers of the IPO. While KFin Technologies is the registrar of the issue.

The IPO will close on September 8, 2023.

Ahead of the IPO, the company raised Rs 261 crore from anchor investors. Nomura Funds, HSBC Global, Florida Retirement System, Fidelity Funds, Goldman Sachs, Government of Singapore and Abu Dhabi Investment Authority were among the 39 investors that took a piece of Jupiter Life Line in the anchor bidding.

Should you subscribe?

Brokerage Nirmal Bang in its IPO note said, "JLHL has mainly focused on middle and upper middle class households where it observes working class segment with organized sector that supports high possession of medical insurance. JLHL has delivered healthy financials with 24.5% revenue growth and 34.6% EBITDA growth between FY20-23."

Further, the brokerage said, "Overall EBITDA margin has also improved from 17.8% in FY20 to 22.6% in FY23. ROE and ROCE stood at healthy levels of 20.1% and 20.5% in FY23 which are largely in line with the average performance of listed peers. The issue is valued at a reasonable valuation of 22.4x FY23 EV/EBITDA compared to 30.4x FY23 average EV/EBITDA of listed peers. Thus, we recommend 'SUBSCRIBE' to the issue."

After the IPO closes on September 8, the basis of allotment of equity shares is expected to be carried on September 13, followed by refunds on September 14, and credit of shares in the demat account on September 15, 2023. As per Chittorgarh, the IPO is expected to list on September 18, 2023.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, znor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.