Mumbai-based hospital chain Jupiter Life Line Hospitals is 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 Group and 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 1 million equity shares by Nitin Thakker jointly with Asha Thakker, up to 4 lakh equity shares by Anuradha Ramesh Modi with Megha Ramesh Modi (as trustees for the benefit of Modi Family Private Trust), 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 hospital began as a single hospital in Thane in 2007 and has been operating for over 15 years as a corporate quaternary care healthcare service provider in the western regions of India. It currently operates in Thane, Pune and Indore under the "Jupiter" brand.
Jupiter Hospitals has a strategic focus on on the western india healthcare market. It currently in 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 share between 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 the few hospitals in the western region of India to provide neuro rehabilitation services through a dedicated robotic and computer-assisted neuro rehabilitation centre. Additionally, it operates one of the few multi-organ transplant centres in Thane with NABH Safe-I certification and the NABH 'Nursing Excellence' accreditation.
Jupiter Life Line Hospitals has turned around from making a loss in FY21 to a profit of Rs 51.13 Cr in FY22, whereas revenue from operations grew 50.80% to Rs 733.12 crore in FY2020-21 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.