Jupiter Life Line Hospitals IPO lists at 32.38% premium, rallies further

Jupiter Life Line Hospitals Ltd had a very robust listing on 18th September 2023, listing at a smart premium of 32.83%, and rallying further from the listing price. The closing price on 18th September 2023 was above the listing price and also above the IPO price as the stock rallied sharply during the day. This was despite the overall stock market performance on 18th September 2023 being lacklustre with the Nifty closing 59 points lower and the Sensex closing a full 242 points lower for the day. Both the Nifty and the Sensex stayed in the negative for most part of the day, but amidst such negative market sentiments, it was quite gratifying that the IPO listing of Jupiter Life Line Hospitals Ltd on 18th September 2023 was very robust and encouraging.

One of the factors that assisted the listing performance was the strong subscription across various categories The stock had seen strong subscription in the IPO. The subscription was 64.80X overall and QIB subscription at 181.89X. Hence the listing was expected to be extremely strong. However, while the listing was strong, the performance strength got reinforced by the fact that it held up even on a day when the overall markets were so lacklustre. Here is the Jupiter Life Line Hospitals Ltd listing story on 18th September 2023

IPO subscription and pricing details

The IPO price was fixed at the upper end of the band at ₹735 which was anyways along expected lines considering the extremely strong 64.80X overall subscription and the 181.89X QIB subscription in the IPO. In addition, the retail portion had got subscribed 8.00X in the IPO while the HNI / NII portion also got a healthy subscription of 36X. The price band for the IPO was ₹695 to ₹735. On 18th September 2023, the stock of Jupiter Life Line Hospitals Ltd listed on the NSE at a price of ₹973, a very strong premium of just 32.38% over the IPO issue price of ₹735. On the BSE also, the stock listed at ₹960, a premium of just 30.61% over the IPO issue price of ₹735 per share. 

How the stock of Jupiter Life Line Hospitals Ltd closed on both exchanges

On the NSE, Jupiter Life Line Hospitals Ltd closed on 18th September 2023 at a price of ₹1,073.95. That is a first day closing premium of 46.12% on the issue price of ₹735 and also a premium of 10.38% on the listing price of ₹973. In fact, the listing price almost turned out to be the low price of the day and the stock traded for the entire trading day above the opening listing price. On the BSE, the stock closed at ₹1,075.25. That represents a first day closing premium of 46.29% above the IPO issue price and also a premium of 12.01% above the listing price on the BSE. On both the exchanges, the stock listed strongly above the issue price and also managed to close Day-1 after rallying much higher. In fact, the opening price turned out to be very close to the low price of the day on both the exchanges. The high price of the day was just above the closing price on both the exchanges, which shows some kind of retreat of gains from higher levels. Clearly, the weak performance of the markets had limited impact on the stock on 18th September 2023 allowing the stock to close the day well above the issue price for the day as well as the listing price. 

Price volume story on the NSE 

The table below captures the opening price discovery in the pre-open period on the NSE. 

Data Source: NSE

Let us look at how the stock traversed on the National Stock Exchange (NSE) on 18th September 2023. On Day-1 of listing, Jupiter Life Line Hospitals Ltd touched a high of ₹1,108.95 on the NSE and a low of ₹970. The premium to the listing price sustained through the day, although the stock did not manage to hold on to the high price of the day. Mainboard IPOs also do not have any upper circuit of 5%, unlike SME IPOs. If you look at the range of prices, the stock opening price turned out to be very close to the low point of the day while the closing price of the day showed some retreat from the high price of the day, largely due to late bout of selling on the stock. The strong post-listing performance of the IPO stock was despite the weak performance of the Nifty, on a day when the index remained below the parity level. On Day-1 of listing, the Jupiter Life Line Hospitals Ltd stock traded a total of 128.25 lakh shares on NSE amounting to value of ₹1,318.16 crore during the day. The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers. The stock closed the day with pending buy orders on the NSE.

Price volume story on the BSE

Let us look at how the stock traversed on the Bombay Stock Exchange (BSE) on 18th September 2023. On Day-1 of listing, Jupiter Life Line Hospitals Ltd touched a high of ₹1,107.50 on the BSE and a low of ₹960. The premium to the listing price sustained through the day, although the stock did not manage to hold on to the high price of the day. Mainboard IPOs also do not have any upper circuit of 5%, unlike SME IPOs. If you look at the range of prices, the stock opening price turned out to be very close to the low point of the day while the closing price of the day showed some retreat from the high price of the day, largely due to late bout of selling on the stock. The strong post-listing performance of the IPO stock was despite the weak performance of the Sensex, on a day when the index remained below the parity level. On Day-1 of listing, the Jupiter Life Line Hospitals Ltd stock traded a total of 8.54 lakh shares on BSE amounting to value of ₹88.30 crore during the day. The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers. The stock closed the day with pending buy orders on the BSE too.

Market capitalization, free float, and delivery volumes

While the volumes on the BSE were not as much as on the NSE, the trend was once again the same. The order book through the day showed a lot of strength and that almost sustained till the close of the trading session on the first day of trading. This robust performance of Jupiter Life Line Hospitals Ltd was despite the weak performance of the Nifty and the Sensex. On the NSE, out of the total 128.25 lakh shares traded during the first day of trading, the deliverable quantity represented 64.49 lakh shares or a deliverable percentage of 50.28% on the NSE, which is well about the median on listing day on the NSE. That shows a lot of delivery action in the counter. Even on the BSE, out of the total 8.54 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 3.82 lakh shares representing total deliverable percentage of 44.69%, well below the delivery action on the NSE. Unlike the SME segment stocks, which are on T2T on the day of listing, the mainboard IPOs permit intraday trading even on the day of listing. 

At the close of Day-1 of listing, Jupiter Life Line Hospitals Ltd had a market capitalization of ₹7,049.99 crore with free-float market cap of ₹916.50 crore. Jupiter Life Line Hospitals Ltd has issued capital of 655.66 lakh shares with a par value of ₹10 per share.