Jupiter Life Line Hospitals shares make a strong debut on D-Street; here is what investors should do

Jupiter Life Line Hospitals shares made an impressive entry into the listed space on Monday, September 18. The stock of Jupiter Life Line Hospitals—which operates a chain of multi-specialty hospitals—debuted at Rs 960 apiece on BSE, marking a premium of Rs 225, or 30.6 per cent, over the upper end of the price band of the company's IPO. Jupiter Life Line shares began their journey on NSE at Rs 973 apiece—a premium of Rs 238 or 32.4 per cent. 

The listing was in line with the expectations of Zee Business Managing Editor Anil Singhvi, who had estimated the stock to debut in the secondary market in the range of Rs 950-975 apiece. 

The stock finished the listing day at Rs 1,075.3 and Rs 1,074 apiece on BSE and NSE, respectively. 

EDITOR'S TAKE | Hold positions with a trailing stop loss 

Singhvi suggests investors hold on to their positions with a trailing stop loss at Rs 900. He had recommended applying for the Jupiter Life Line Hospitals IPO for “good listing gains” and from a long-term perspective, citing reasonable valuations and highlighting the following key points:

Positive

• The company's experienced promoters
• Its strong financial track record
• Its hospitals built on its own land
• The company set to become debt-free after the IPO
• The addition of new hospitals set to ensure future growth for the company
• The company's "very strong" anchor book

Negative

• The company's limited scope to improve its revenue per bed
• Its occupancy levels lower than the industry's 
• Its high dependency on the Thane hospital

Here's all you need to know about the Jupiter Life Line Hospitals IPO: 

The initial share sale of Jupiter Life Line concluded recently with an overall subscription of almost 64 times. The IPO of Jupiter Life Line Hospitals, which opened for subscription on September 6 and closed on September 8, received bids for a total of 54.1 crore shares across different categories of investors against the almost 85 lakh shares on offer, according to provisional exchange data. 

The portions reserved for all categories of investors were fully subscribed. Here's the breakup: 

The initial public offer comprised fresh issuance of shares worth Rs 542 crore, and an offer for sale (OFS) worth Rs 327 crore by promoters and existing shareholders.

Under the IPO, shares were available for bidding in a price range of Rs 695-735 apiece in multiples of 20, translating to Rs 13,900-14,700 per lot.

What does Jupiter Life Line Hospitals do?

Jupiter Life Line Hospitals operates in Thane, Pune and Indore under the brand Jupiter. As of December 2022, the company’s total bed capacity stood at 1,194. Jupiter Hospitals, which has a strategic focus on the healthcare market in the western regions of the country, is in the process of developing a multispecialty hospital in Dombivli, Maharashtra, being designed to accommodate more than 500 beds.

(With inputs from agencies)

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