Jupiter Lifeline Hospitals – IPO Note

 

 

Jupiter Lifeline Hospitals | IPO Note | Price Band – 695-735 

Rating: SUBSCRIBE

Jupiter Hospitals which operate and manages hospitals in Thane, Pune and Indore is coming up with an IPO to raise around Rs. 869 cr, which opens on 6th Sep. and closes on 8th Sep. 2023.

The price band is Rs. 695 – 735 per share. Jupiter hospitals is among the key multi-specialty tertiary and quaternary healthcare providers in the Mumbai Metropolitan Area and western region of India with a total bed capacity of 1,194 hospital beds across three hospitals as of March 31, 2023. It has been operating for over 15 years as a corporate quaternary care healthcare service provider in the western regions of India. It is also currently in the process of developing a multispecialty hospital in Dombivli, Maharashtra, which is designed to accommodate over 500 beds.

Founded by Dr. Ajay Thakkar
Dr. Ajay Thakker is the Chairman and Managing Director of our Company. He has been associated with the Company since inception and was also associated with Jupiter Scan and Imaging Centre Private Limited as a director. He has over 31 years of experience in the field of medicine and healthcare. He is currently responsible for the overall management of the Company.

Neuro Rehabilitation in Thane and Indore region
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, our Company operates one of the few multi-organ transplant centres in Thane. Each of its hospitals at Thane, Pune and Indore has been certified by NABH.

Track-record of operational and financial performance with a diversified revenue mix
The company have grown from a single hospital in Thane in 2007 to three hospitals with an operational bed capacity (i.e., census and non-census beds) of 950 beds and 961 beds, as of Mar 23. It has delivered high operational and financial performance through high patient volumes, cost efficiency and diversified revenue streams across hospitals. It has, over the last three years, showcased consistent growth and expanded its healthcare infrastructure and services, without any investment from institutional investors.

Continue to recruit and retain skilled healthcare professionals!
In line with its “patient first” ideology, its mission is to create the best infrastructure, technology and support to put the patient first and foremost and be futuristic and innovative in delivery of healthcare. It aim to adopt the latest medical technologies and equipment to provide better treatment for our patients and believe that by incorporating such new technologies in our operations, we will be able to improve patient care, expand the scope of treatments that we offer and increase affordability, efficiency and cost savings.

All hub no spoke model:
Jupiter hospitals function on an ‘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.

Features of the IPO:
The IPO is a combination of fresh issue and OFS portion.  The firm has cut fresh issue size to Rs 542 crore from Rs 615 crore earlier planned. The OFS comprises of upto 4.45 million shares by its existing shareholders and promoters. The proceeds from the issue worth Rs 510.41 crore will go toward debt repayment. As of March 2023, total debt of the company stood at Rs 476.37 crore.

The OFS consists of upto 1.25 million shares by Devang Vasantlal Gandhi (HUF), upto 9 lakh shares by Devang Gandhi jointly with Neeta Gandhi, upto 1 million shares by Nitin Thakker jointly with Asha Thakker, and upto 4 lakh shares each by Anuradha Ramesh Modi with Megha Ramesh Modi and Bhaskar P Shah (HUF).

Conclusion:
Amid advantage of regional dominance, operational efficiency, Jupiter Hospital has demonstrated the good financial performances among peers. It has the high level ARPOB. Hence, based on current performance, we assign SUBSCRIBE for listing gain. At higher price band, Jupiter Hospital is demanding an EV/EBITDA multiple of 22x, which is at par with peer Yatharth Hospitals (Same size of 3 hospitals). Thus, the IPO is attractively priced.

Read the Jupiter Lifeline Hospitals IPO Note.