Jupiter Life Line Hospitals has identified western India as the region for the next phase of its expansion as it sees a substantial gap exists between demand and supply in the region.
“The chosen canvas for operation, therefore, is the western part of India,” said Dr Ankit Thakker, the company’s chief executive officer, in a pre-IPO interview to Moneycontrol.
Notably, the majority of organised healthcare providers are centred in the North and South, resulting in a scarcity of good-quality healthcare services in the western region, he claimed. The company’s growth endeavours will also remain confined to the western region.
Jupiter’s strategic approach revolves around the identification of areas with distinct micro-market characteristics, particularly those with dense residential populations and a relative undersupply of tertiary and quaternary healthcare services.
These underserved areas will receive special attention as the organisation seeks to bridge the healthcare gap within Western India, Thakker said.
The IPO is open for subscription till September 8.
The company plans to invest all its surplus funds for growth, which would allow for the expansion of operations and bolstering its presence in the market.
The financials
Jupiter Life Line plans to utilise all the IPO proceeds of Rs 510.41 crore towards debt repayment. As of March 2023, its total debt stood at Rs 476.37 crore. Its debt/equity ratio is 1.3x compared to the industry average of 0.6 times. Post the IPO, the company would be debt-free.
Jupiter Life Line has a higher debt profile (debt-to-equity ratio) compared to its peers. Its price-to-earnings (P/E) ratio of 52.68 is in line with its peers, but its Return on Equity is relatively lower.
About Jupiter Life Line Hospitals
Founded in 2007, Jupiter Life Line Hospitals is a multispecialty tertiary and quaternary healthcare provider in western India. It currently operates three hospitals under the Jupiter brand in Thane, Pune and Indore.
The company has a total operational bed capacity of 1,194 beds and 1,246 doctors—including specialists, physicians and surgeons as of March 31. It is also building a multispecialty hospital in Dombivli, Maharashtra, with around 500 beds.
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