IPO screener: Jupiter Life Line Hospitals issue closes today

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The public offer of Jupiter Life Line Hospitals will close today. The IPO was subscribed 3.3 times on the second day of bidding by investors across categories. The IPO has a price band of ₹695-735 and market lot of 20 shares.

The issue has received bids of 2.80 crore shares, against the offered 84.97 lakh shares, according to data available on the stock exchanges. 

The non-institutional investors’ portion was subscribed 6.63 times, the retail portion 3.08 times, whereas, the qualified institutional buyer portion was subscribed 1.12 times. 

Also read: Jupiter Lifelines Hospital IPO: Should you subscribe? 

As part of IPO process, Jupiter Life Line Hospitals raised ₹261 crore from anchor investors. The foreign investors and domestic Institutions that participated in the anchor were Singapore Government, Abu Dhabi Investment Authority, Goldman Sachs, Fidelity Funds, Nomura, HDFC Mutual Fund (MF), Nippon India MF, Axis MF, Kotak Mahindra MF, Aditya Birla Sun Life MF, SBI Life Insurance Company and HDFC Life Insurance.

The ₹869-crore public offer is a combination of a fresh issue (₹542 crore) and an offer-for-sale (OFS) of 44.5 lakh shares by 10 shareholders, including promoter group names Devang Vasantlal Gandhi (HUF), and Devang Gandhi jointly with Neeta Gandhi.

The company plans to use the IPO proceeds for repayment of existing debt, which as of March 2023 stood at ₹473.37 crore. The company will turn debt-free after the public offer. The rest of the proceeds are also aimed at funding growth opportunities, strengthening marketing capabilities, and working capital requirements.

The debt payment will also help the company raise other rounds of capital to support its capacity expansion plans, without putting a strain on its financials.