Multispecialty Hospital Chain, Jupiter Life Line Hospitals files DRHP
for IPO
Mumbai-based hospital
chain Jupiter Life Line Hospitalsis among the key multi-specialty tertiary and
quaternary healthcare providers in the Mumbai Metropolitan Area (MMR) and
western region of India with a total bed capacity of 1,194 hospital beds across
three hospitals as of December 31, 2022 has filed its draft red herring
prospectus (DRHP) with capital market regulator Sebi to raise funds through for
its initial public offering (IPO).
The issue
with a face value of Rs 10 per equity share consists of a fresh issue of equity shares worth up to Rs 615 crore and an
offer-for-sale (OFS) of up to 4.45 million equity shares by Promoter Groupand
other selling shareholders.
The offer for sale comprises of up to 1.25 million equity shares by Devang
Vasantlal Gandhi (HUF), up to 9 lakh equity shares by Devang Gandhi jointly
with Neeta Gandhi, up to 1million equity shares by Nitin Thakker jointly with
Asha Thakker, up to 4 lakh equity shares by AnuradhaRamesh Modiwith MeghaRamesh
Modi (astrustees for thebenefit of ModiFamily PrivateTrust), and up to 4 lakh equity
shares by Bhaskar P Shah (HUF), up to 2 lakh equity shares by Rajeshwari Capital Market Limited, up to 2 lakh equity shares by Vadapatra
Sayee Raghavan (HUF), up to 40,000 equity shares by Sangeeta Ravat jointly with
Dr. Hasmukh Ravat, up to 40,000 equity shares by Dr. Hasmukh Ravat jointly with
Sangeeta Ravat, up to 20,000 equity shares by Shreyas Ravat jointly with
Sangeeta Ravat.
The Offer is being made through the Book Building
Process, wherein not more than 50% of the Offer shall be available for allocation
on a proportionate basis to Qualified Institutional Buyers, not less than 15%
of the Offer shall be available for allocation to Non-Institutional Bidders and
not less than 35% of the Offer shall be available for allocation to Retail
Individual Portion.
The company, in consultation with the lead bankers to the issue, may
consider a further issue of specified securities for a cash consideration
aggregating up to Rs 123 crore (“Pre-IPO Placement”). If such placement is
completed, the fresh issue size will be reduced.
As per the
DRHP, the proceeds from the issue will be utilized to the extent of Rs. 463.90 crore
for repayment/ pre-payment, in full or in part, of borrowings availed from banks by the company and material subsidiary and
general corporate purposes.
Led by founder,
Chairman and Managing Director, Dr.Ajay P Thakker with over 3 decades of experience in the field of medicine and healthcare
and Dr. Ankit Thakker, Chief Executive Officer who has a decades experience in
the healthcare sector , the hospitalbegan as a single hospital in Thane in 2007
and has been operating for over 15 years as a corporate quaternarycare
healthcare service provider in the western regions of India. It currently operates
inThane, Pune and Indore under the “Jupiter” brand.
Jupiter Hospitals has a strategic
focus on on the western india healthcare market. It currentlyin the process of
developing a multispecialty hospital in Dombivli, Maharashtra, which is being
designed to accommodate over 500 beds. The construction of the hospital began
in April 2023 and will be spread across 600,000 sq feet
It follows a
patient first ideology and operates on a "all-hub, no-spoke" model
with each hospital being a full-service hospital, operating independently, and
serving the healthcare needs of patients, right from diagnostics to surgery and
rehabilitation across 30 different specialties
Across all its
hospital assets it has a very low dependence on central and state government
schemes and has an almost equal sharebetween self-payers and those come via
insurance companies, third party administrators and corporations.
According to the CRISIL Report in its
DRHP, the Thane and Indore hospitals are amongst thefew hospitals in the
western region of India to provide neuro rehabilitation services through a
dedicated roboticand computer-assisted neuro rehabilitation centre.
Additionally, it operates one of the few multi-organtransplant centres in Thane
with NABH Safe-I certification and the NABH ‘Nursing Excellence’accreditation.
Jupiter Life Line Hospitals has turned
around from making a lossin FY21 to a profit of Rs 51.13 Cr in FY22, whereas revenue from operations grew 50.80% to Rs 733.12 crore in FY2021-22 from
Rs 486.16 crore in FY 2021-22, primarily driven by an
increase in both inpatient and outpatient incomes.
For the nine
months ended December 31, 2022 revenue from operations stood at Rs 650.24 crore
and profit after tax stood at Rs 57.15 crore, whereas EBITDA margin stood at 23.84%.
ICICI Securities Limited,
Edelweiss Financial Services Limited, and JM Financial Limited are the book
running lead managers and KFin Technologies Limited is the registrar to
the offer. The equity shares are proposed to be listed on BSE and NSE.
