Jupiter Life Line Hospitals, a healthcare service provider, is expected to have a premium listing of around 30 percent over its issue price of Rs 735 per share on September 18. This optimism is based on the strong subscription numbers the company received during its initial public offering (IPO), as well as its strong brand recall in the Mumbai Metropolitan Area (MMR) region and the increasing demand in the healthcare sector. The overall bullish sentiment in the equity markets also contributes to the positive outlook for the company's listing.
During the IPO, Jupiter Life Line Hospitals received a subscription of 63.72 times, with qualified institutional buyers purchasing 187.32 times the allotted quota. High-net-worth individuals and retail investors also showed support for the issue. The company operates three hospitals in the MMR and western regions of India, with a total capacity of 1,194 beds. It is also in the process of constructing a fourth hospital in Dombivli, Maharashtra, with a capacity of over 500 beds.
Analysts believe that the company's strong brand recall in the MMR region and its focus on delivering advanced healthcare make it an attractive investment from a medium- to long-term perspective. The company has also shown consistent improvement in its financial performance, and the retirement of debt from the IPO proceeds is expected to further enhance its performance.
Jupiter Life Line Hospitals plans to use the net fresh issue proceeds primarily for repaying debt worth Rs 510.4 crore, with the remaining funds allocated for general corporate purposes. The company's market capitalization currently stands at Rs 4,819 crore at the upper price band of Rs 735 per share.
The company recorded a profit of Rs 72.9 crore for the fiscal year 2022-2023, a 42.6 percent increase over the previous year. Its revenue from operations also increased by 21.7 percent year-on-year to Rs 892.5 crore, while its EBITDA margin expanded to 22.55 percent.
In the grey market, Jupiter Hospital shares were available at a premium of more than 30 percent, indicating strong demand for the company's shares before its listing.
Overall, the positive response to Jupiter Life Line Hospitals' IPO, coupled with the bullish sentiment in the equity markets and the company's strong brand recall and financial performance, suggests a promising listing for the healthcare service provider.
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