Jupiter Life Line Hospitals, a leading multispecialty hospital chain based in Maharashtra, has completed a pre-IPO placement of ₹123 crore.
The pre-IPO round saw investment from high-profile institutional investors like SBI Mutual Fund and Neuberger Berman ahead of Jupiter’s planned public listing.
Jupiter Hospitals Pre-IPO Placement Oversubscribed
According to a media advertisement published on August 22nd, Jupiter Hospitals undertook a pre-IPO preferential allotment of 1.67 million shares at ₹735 per share valuing the company at over ₹1,200 crore.
The hospital chain offered shares totaling ₹123 crore but the placement round was oversubscribed driven by strong institutional demand.
Marquee domestic mutual funds like SBI MF and global asset managers such as Neuberger Berman participated in the anchor round.
The successful pre-IPO fundraiser highlights investor appetite for the impending IPO of Jupiter Hospitals. Anchor investors in pre-IPO rounds usually tend to subscribe to the IPO as well.
IPO to Further Augment Growth Capital
The pre-IPO placement comes just months after Jupiter Hospitals filed its draft red herring prospectus (DRHP) with SEBI in May 2022 for a ₹750 crore IPO.
The proposed public issue comprises ₹615 crore worth of fresh shares and an offer for sale of ₹135 crore by promoters and other shareholders.
Post the ₹123 crore pre-IPO raise, the size of the IPO’s fresh issue component is expected to be reduced accordingly.
The company plans to use the proceeds for debt repayment, financing expansion plans, subsidiary investments, and general corporate purposes.
The eventual IPO will provide Jupiter with additional growth capital to fund its expansion strategy across Maharashtra and other focus geographies.
About Jupiter Life Line Hospitals
Incorporated in 2007, Jupiter Hospitals started as a single medical facility in Thane, Maharashtra. It is promoted by founder Dr. Ajay P. Thakker and CEO Dr. Ankit Thakker.
Over 15 years, Jupiter has emerged as a leading quaternary care hospital chain focused on Western India.
The company currently operates hospitals under the Jupiter brand in Thane, Pune, and Indore with over 900 beds. Its network includes super specialty tertiary care hospitals, secondary care hospitals, and primary clinics.
Strategic Focus on Expanding in Western India
As per its DRHP, Jupiter has a strategic focus on expanding its presence within Maharashtra and other Western Indian states.
The company is setting up a 500-bed multispecialty hospital in Dombivli near Mumbai that will significantly boost its capacity and coverage.
Jupiter also plans to open new hospitals in Nashik, Aurangabad, and Ahmedabad as part of its Western India-centric growth strategy.
The pre-IPO funds will provide growth capital supporting the company’s expansion plans through greenfield hospitals and strategic acquisitions.
Jupiter Hospitals Robust Financial Growth Momentum
Jupiter Hospitals has exhibited strong financial performance with its total income growing at a 35% CAGR over FY17-22 to reach ₹566 crore.
Profits have also jumped at a 65% CAGR during this period highlighting the company’s operating leverage.
The healthy growth metrics make Jupiter an attractive proposition for investors despite the challenges facing the healthcare sector currently.
Jupiter Hospitals Outlook for Healthcare IPOs
After muted interest in 2021, investor sentiment towards healthcare IPOs has revived in 2022 highlighted by oversubscription of public issues by Aster DM Healthcare and Syrma SGS Technology.
Jupiter Hospitals’ successful pre-IPO round sets the stage for a well-received IPO. The company’s reasonable valuations, growth track record, and focus on non-metro regions make it an IPO to watch out for.
With India’s underpenetrated healthcare market and favorable demographics, the listing aims to unlock value for Jupiter Healthcare as it eyes geographic expansion powered by external capital.
