Jupiter Hospitals Gets SEBI Approval For IPO, Raises Rs 123 Crore In Pre-IPO Round

Earlier in May, the company filed it’s draft red herring prospectus (DRHP) with SEBI to float it’s maiden IPO.

Jupiter Life Line Hospitals has received approval from the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO). The multi-specialty hospital chain raised Rs 123 crore in it’s pre-IPO round from institutional investors. 

According to a PTI report, the company stated that it received an observation letter from the market regulator on August 11. The company issued 16.7 lakh shares at a price of Rs 735 per share in the funding round, it informed via a public announcement. 

Investors like SBI Magnum Children’s Benefit Fund, SBI Optimal Equity Fund, SBI Healthcare Opportunities Fund, Neuberger Berman Emerging Markets Equity Fund, Neuberger Berman Europe Holdings LLC, and Neuberger Berman Strategic India Equity Master Fund Holdings Ltd. participated in the pre-IPO round. Other investors included Think India Opportunities Master Fund LP, DC Ikka Ltd, and others. 

Earlier in May, the company filed it’s draft red herring prospectus (DRHP) with SEBI to float it’s maiden IPO. The IPO comprises a fresh issue of equity shares worth Rs 615 crore and an offer-for-sale (OFS) worth Rs 44.5 lakh equity shares by the promoters and other shareholders. 

The report stated that now the fresh issue size will be decreased as the pre-IPO funding has been completed. The funds raised from the public issue will be focused on debt payments and general corporate purposes, the company noted. 

Jupiter Life Line Hospitals operates in Thane, Pune, and Indore under the Jupiter brand and has a total bed capacity of 1,194 as of December 2022. The company is focused on capturing the healthcare market in Western India and is currently planning to develop a multispecialty hospital in Dombivli, Maharashtra with a capacity of more than 500 beds.

The hospital chain reported a profit of Rs 51.13 crore in 2021-22 (FY22), recovering from the loss in 2020-21 (FY21). It reported an increase of 51 per cent in it’s revenue from operations from Rs 486.16 crore in FY21 to Rs 733.12 crore in FY22. Further, the company’s profit after tax stood at Rs 57.15 crore for the nine months ended December 31, 2022, and operational revenue was Rs 650.24 crore for the same period. 

(Disclaimer: This report is meant only for information purposes. It should not be treated as a stock recommendation. Reader discretion advised.)