Multispecialty hospital chain Jupiter Life Line Hospitals has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO). The IPO comprises fresh issue of equity shares worth Rs 615 crore and an offer for sale (OFS) of 44.5 lakh equity shares by promoter group entities and other shareholders, according to the draft red herring prospectus (DRHP).
Current promoters Ajay Thakker, Ankit Thakker and Western Medical Solutions LLP are not diluting their stake in the IPO. Proceeds of the fresh issue to the tune of Rs 464 crore will be utilized to retire debt. Besides, funds will be used for general corporate purposes. The Mumbai-headquartered company may consider a pre-IPO placement of Rs 123 crore and if such placement is undertaken, fresh issue size will be reduced.
The hospital chain operates in Thane, Pune and Indore under the “Jupiter” brand with a total bed capacity of 1,194 as of December 2022. Jupiter Hospitals, which has a strategic focus on the Western India healthcare market, is in the process of developing a multispecialty hospital in Dombivli, Maharashtra, which is being designed to accommodate over 500 beds.
The company has turned around from making a loss in financial year 2020-21 to a profit of Rs 51.13 crore in 2021-22 and revenue from operations jumped 51 per cent to Rs 733.12 crore in FY22 from Rs 486.16 crore in FY21.For the nine months ended December 31, 2022, the company’s profit after tax was Rs 57.15 crore and revenue from operations was Rs 650.24 crore.
ICICI Securities, Edelweiss Financial Services, and JM Financial are the book-running lead managers to the issue. The equity shares are proposed to be listed on BSE and NSE.
