Jupiter Life Line Hospitals IPO continued to attract investors' attention on its second day of bidding. Investors have bought 2.8 crore equity shares against the offer size of 84.97 lakh shares, resulting in the IPO getting subscribed 3.3 times, backed majorly by HNIs and retail.
The reasonable valuations, likely becoming debt-free post issue, and strong financial performance with healthy ratios are some of key reasons behind the good subscription numbers, experts said.
The portion reserved for high networth individuals, which is 15 percent in the total issue size, has been booked 6.63 times, and that of retail investors, which is 35 percent in the offer, 3.08 times.
Qualified institutional investors have also been gradually increasing their support, buying shares 1.12 times their part which is 50 percent.
On its first day of bidding, i.e. September 6, the initial public offering was subscribed 87 percent.
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The Mumbai-based healthcare services provider aims to raise Rs 869.08 crore via public issue, at the upper end of price band of Rs 695-735 per share.
The IPO comprises a fresh issue component of Rs 542 crore, and an offer-for-sale portion of 44.5 lakh shares worth Rs 327.08 crore at upper price band by 10 selling shareholders.
Jupiter Hospitals is going to utilise fresh issue proceeds mainly for the repaying debts amounting to Rs 510.4 crore, and the remaining for general corporate purposes.
Also read: Jupiter Hospitals IPO | 10 key things to know
The hospital chain with three hospitals (in Thane, Pune and Indore) is among the key multi-specialty tertiary and quaternary healthcare providers in the Mumbai Metropolitan Area (MMR) and western region of India with a total bed capacity of 1,194 hospital beds as of March 2023.
It is also in the process of developing its fourth multi-specialty hospital, which is in Dombivli, Maharashtra, with a capacity of over 500 beds. The construction for the said hospital has already commenced in April 2023.
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