Jupiter Life Line IPO Day 1: The issue has been subscribed 0.47 times so far; Retail share booked 66%

Subscription Status for Jupiter Life Line Hospitals Initial Public Offering: The initial public offering (IPO) of Jupiter Life Line Hospitals Ltd, the multi-specialty tertiary and quaternary healthcare provider, opened for public subscription today. The IPO, which will close on September 8, has been well received by investors so far.

Jupiter Life Line’s IPO has drawn 0.47 subscriptions so far as of September 6, the first day of the bidding process. The public offering received bids for 39.29 lakh shares as of 2:00 p.m. compared to 84.97 lakh shares on offer.

The issue was 66% subscribed in the retail category and 60% in the non-institutional investor (NII) category. Qualified Institutional Buyers (QIB) have so far bid for 0.01% shares of their reserved stake, according to data available on NSE.

At the IPO, the company reserved no more than 35% of the shares for retail investors, 15% for NIIs and the reserved portion for QIBs is 50%.

Jupiter Life Line Hospitals already raised Tuesday ₹261 crore from anchor investors before the IPO.

Also Read: Jupiter Life Line Hospitals Increased ₹261 crore from anchor investors before the IPO

The price range for the Jupiter Life Line IPO has been set at ₹695-735 per share. The IPO will involve a new issuance of shares worth ₹542 crore and an offer for sale (OFS) of 44.5 lakh shares by support group companies and other shareholders. At the top end of the price range is Jupiter Life Line’s IPO issuance volume ₹869.08 crores

The lot size for the Jupiter Life Line Hospitals IPO is 20 shares and the minimum investment required from retail investors is ₹14,700.

The Company will determine the basis for the IPO grant on September 13 and issue refunds on September 14, while the shares will be credited to eligible grantees’ demat accounts on September 15.

Jupiter Life Line Hospitals shares are expected to list on the BSE and NSE stock exchanges on September 18th.

The Company intends to use the proceeds from the new offering to service debt and for general corporate purposes.

Jupiter Lifeline Hospitals is among the premier multi-specialty tertiary and quaternary healthcare providers in the Mumbai Metropolitan Region (MMR) and Western Region of India with a total bed capacity of 1,194 hospital beds across three hospitals as of March 31, 2023.

Also Read: Jupiter Life Line IPO: Issue Opens for Subscription Today; Check GMP and offer details if you sign up

Jupiter Life Line IPO rating

Most analysts have recommended a long-term subscription to Jupiter Life Line’s IPO, citing solid financials and reasonable yield ratios.

Jupiter Life Line Hospitals has reported solid financials between fiscal 2020 and fiscal 2023 with revenue growth of 24.5% and EBITDA growth of 34.6%. The overall EBITDA margin also improved from 17.8% in FY20 to 22.6% in FY23.

“ROE and ROCE were at healthy levels of 20.1% and 20.5% in fiscal 2023, broadly in line with the average performance of listed peers. The issue is valued at a fair value of 22.4x FY23 EV/EBITDA compared to 30.4x FY23 average EV/EBITDA of listed peers. So we recommend subscribing to the issue,” said Nirmal Bang.

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Jupiter Life Line IPO GMP today

Jupiter Life Line IPO GMP today or gray market premium today ₹276 per share, according to topsharebrokers.com. This reflects Jupiter Life Line Hospitals shares trading 20% ​​higher ₹276 as its issue price, on the gray market.

Taking into account today’s GMP and the upper end of the issue price, the stock exchange listing of the Jupiter Life Line share can therefore take place ₹1,011 per share, which corresponds to a premium of 37.55% on the issue price.

Disclaimer: The views and recommendations expressed above are provided by individual analysts or brokerage firms and not by Mint. We recommend investors to consult certified experts before making an investment decision.

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