Jupiter Life Line Hospitals shares delivered returns in line with expectations on the listing day, September 18, despite consolidation and profit booking in the equity markets.
The stock opened at Rs 973 on the National Stock Exchange, the price which decided in the pre-opening session, up 32.4 percent over the issue price of Rs 735. In the normal session, the opening price was Rs 1,026.50 and it remained above Rs 1,000 mark throughout session.
Analysts had expected the stock to list with 30 percent premium over issue price, and the grey market premium was around 30-35 percent.
The stock touched an intraday high of Rs 1,108.95 and finally settled with 46.36 percent gains at Rs 1,075.75, with volume of 1.28 crore equity shares, while the closing price on the BSE was Rs 1,075.25, with volume of 8.54 lakh shares. The market capitalisation was Rs 7,053 crore at the closing price.
The robust IPO subscription numbers of 63.72 times during September 6-8, healthy financial performance in the past years and the strong outlook for healthcare sector boosted the confidence among participants.
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"On the financial front, there has been a consistent improvement in performance which is likely to be augmented through the retirement of debt from the IPO proceeds," Prathamesh Masdekar, research analyst at StoxBox said.
Moreover, the expected capacity additions from an upcoming hospital in Dombivli, Maharashtra and increasing customer preference towards organised form of healthcare services remain long term positives for the company, he believes. Hence, he advised investors to hold it from a medium to long term perspective.
Anubhuti Mishra, equity research analyst at Swastika Investmart advised that investors who want to hold it long term can maintain a stop-loss at around Rs 875.
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Jupiter Hospital is a well-established multi-specialty healthcare provider in the western region of India, and it is planning to expand its operations in the future.
The company has raised Rs 869 crore via public issue including a fresh issue of Rs 542 crore which will be utilised mainly for repaying debts worth Rs 510.4 crore and remaining for general corporate purposes. The price band for the offer was Rs 695-735 per share.
The multi-specialty tertiary and quaternary healthcare provider operates three hospitals in the Mumbai Metropolitan Area (MMR) and western region of India (Thane, Pune and Indore) with a total capacity of 1,194 beds as of March 2023.
Further, it also started the construction for the fourth multi-speciality hospital in Dombivli, Maharashtra, with a capacity of over 500 beds.
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