Jupiter Hospitals Secures INR 123 Cr in Pre-IPO Round, Receives SEBI Approval for IPO

With the submission of its draft herring prospectus (DRHP) to the market regulator in May this year, Jupiter stands on the brink of commencing its IPO journey.

Leading multi-speciality hospital chain Jupiter Life Line Hospitals has successfully concluded its pre-IPO (Initial Public Offering) placement, securing a whopping INR 123 Cr. This pivotal development has prompted an adjustment in the fresh issue size for the forthcoming IPO. Further, Jupiter has received capital markets regulator SEBI's approval to raise funds through IPO. 

Having filed its draft herring prospectus (DRHP) with the market regulator in May this year, Jupiter is on the cusp of initiating its IPO.  

The IPO, with a face value of INR 10 per equity share, entails a fresh issue of equity shares amounting to INR 615 Cr and an offer-for-sale (OFS) encompassing up to 4.45 million equity shares. The latter combines offerings from the Promoter Group and other selling shareholders.

Notably, on August 22, 2023, in coordination with lead bankers, the company executed an additional issuance of specified securities. A total of 1.67 million shares were offered at an issue price of INR 735 per equity share, which includes a premium of Rs. 725 per equity share.

The participation in this issuance was robust and included institutional investors such as SBI Magnum Children's Benefit Fund, SBI Optimal Equity Fund, SBI Healthcare Opportunities Fund, Neuberger Berman Emerging Markets Equity Fund, Neuberger Berman Europe Holdings LLC, and DC Ikka Limited among others.

The offer-for-sale component comprises several contributors, including Devang Vasantlal Gandhi (HUF), Devang Gandhi jointly with Neeta Gandhi, Nitin Thakker jointly with Asha Thakker, Anuradha Ramesh Modi with Megha Ramesh Modi (as trustees for the benefit of Modi Family Private Trust) among others.

As per the DRHP, the proceeds from the IPO will be judiciously employed. Approximately INR 463.90 Cr is allocated for the full or partial repayment/pre-payment of borrowings from banks by the company and its material subsidiary. The remaining funds are intended for general corporate purposes.

Jupiter Life Line Hospitals, spearheaded by its founder, chairman, and MD, Dr. Ajay P Thakker, who boasts a three-decade-long tenure in the medical and healthcare domain and guided by Dr Ankit Thakker, CEO with extensive experience in healthcare, commenced its journey as a solitary hospital in Thane back in 2007.

Over 15 years, it has evolved into a prominent quaternary care healthcare service provider in the western regions of India. The hospital's footprint extends across Thane, Pune, and Indore, all operating under the distinctive '˜Jupiter' brand.

Demonstrating a strategic focus on the western India healthcare market, Jupiter Hospitals is actively progressing with establishing a multi-speciality hospital in Dombivli, Maharashtra.

This forthcoming facility, designed to accommodate over 500 beds, is being constructed on a sprawling 600,000-square-foot expanse. The groundbreaking for this project was in April 2023, setting the stage for expanding Jupiter's already significant footprint.

As Jupiter Life Line Hospitals concludes its pre-IPO placement and prepares for its IPO debut, the healthcare industry and potential investors alike eagerly anticipate the impact of this significant milestone.