Jupiter Life Line Hospitals IPO subscribed 63.72 times at close

Jupiter Life Line Hospitals IPO worth ₹869.08 crore, consisted of a combination of fresh issue and offer for sale. The fresh issue was to the tune of ₹542 crore while the offer for sale (OFS) was worth ₹327.08 crore. The IPO pricing was done in the band of ₹695 to ₹735 per share with the final price to be discovered through the process of book building. While the QIB portion only picked up traction on the last day, the retail portion and the HNI / NII portion got fully subscribed on the first day of the IPO itself. However, the overall IPO had been fully subscribed only by the close of the second day of the IPO.

Quick update on the overall IPO response

The IPO saw fairly steady response on Day-1 and Day-2 of the IPO and closed with rather healthy subscription numbers at the close of Day-3. In fact, the retail and the HNI / BII portion got fully subscribed on the first day of the IPO itself. However, the QIB portion got fully subscribed only on the last day while the overall IPO got fully subscribed on the second day of the IPO. As per the combined bid details put out by the BSE at the close of Day-3, Jupiter Life Line Hospitals Ltd IPO was subscribed 63.72X overall, with best demand coming from the QIB segment, followed by the HNI / NII segment and the retail segment in that order. In fact, the institutional segment saw some very good traction on the last day. The HNI portion did do well and a lot of the surge of funding applications and corporate applications did come in on the last day of the IPO, which is the general norm. Retail portion and HNI / NII portion got fully subscribed on Day-1 and built up heft gradually. The overall IPO got subscribed full on the second day of the IPO. Let us look at re the details of overall allocation, first and foremost.

As of close of 08th September 2023, out of the 84.97 lakh shares on offer in the IPO, Jupiter Life Line Hospitals Ltd saw bids for 5,414.60 lakh shares. This implies an overall subscription of 63.72X overall. The granular break-up of subscriptions was in favour of the QIB investors followed by the HNI / NII investors while the retail portion got the lowest subscription among the various categories. QIB bids and NII bids typically gather most of the momentum on the last day, and that was the case in this issue also in the case of QIB bids. Both the QIB and the NII bids picked momentum on the last day and added to its heft of the previous days. Here are the details of the category-wise subscription.

Subscription status of QIB Portion

Let us first talk about the pre-IPO anchor placement. On 05th September 2023, Jupiter Life Line Hospitals Ltd did an anchor placement with 29.8% of the IPO size getting absorbed by the anchors. Out of the 1,19,03,073 shares on offer, the anchors picked up 35,47,247 shares accounting for 29.80% of the total IPO size. The anchor placement reporting was made to the BSE late on 05th September 2023. The IPO of Jupiter Life Line Hospitals Ltd opened on 06th September 2023 in the price band of ₹695 to ₹735 and closed for subscription on 08th September 2023 (both days inclusive). The entire anchor allocation was made at the upper price band of ₹735 (including face value of ₹10 and premium of ₹725 per share). Here are the details of the anchor allocation with the principal subscriber names and quantity absorbed for those with the highest allocation. It is just a cross section 14 anchors which accounted for 63.76% of the total anchor placement out of 39 anchors in all.

Data Source: BSE Filings

The QIB portion (net of anchor allocation as explained above) had a quota of 23.73 lakh shares of which it has got bids for 4,444.95 lakh shares at the close of Day-3, implying a subscription ratio of 187.32X for QIBs at the close of Day-3. QIB bids typically get bunched on the last day and while the heavy demand for the anchor placement had given an indication of the institutional appetite for the Jupiter Life Line Hospitals Ltd IPO subscription overall, the actual demand did turn to be quite robust for the IPO.

Subscription status of HNI / NII Portion

The HNI portion got subscribed 34.75X (getting applications for 638.46 lakh shares against the quota of 18.37 lakh shares). That is a very strong response at the close of Day-3 largely because this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, come in on the last day of the IPO, and that was visible as the overall HNI / NII portion added to its heft on the last day of the IPO. Apart from the QIB portion, even HNIs saw good traction on the last day.

Now the NII/HNI portion is reported in two parts viz. bids below ₹10 lakhs (S-HNI) and bids above ₹10 lakhs (B-HNI). The bids above the ₹10 lakh category (B-HNIs) typically represents most of the major funding customers. If you break up the HNI portion, the above ₹10 lakh bid category got subscribed 39.24X while the below ₹10 lakh bid category (S-HNIs) got subscribed 25.78X. This is just for information and is already part of the overall HNI bids explained in the previous para.

Subscription status of Retail Individuals

The retail portion was subscribed just 7.73X at the close of Day-3, showing steady to strong retail appetite. It must be noted that retail allocation is 35% in this IPO. For retail investors; out of the 42.87 lakh shares on offer, valid bids were received for 331.19 lakh shares, which included bids for 281.31 lakh shares at the cut-off price. The IPO is priced in the band of (₹695 to ₹735) and has closed for subscription as of the close of Friday, 08th September 2023. The cut-off investing is a facility available only to retail and small investors to improve their chances of getting allotments rather than being priced out of the IPO.

Brief on the business model of Jupiter Life Line Hospitals Ltd

Jupiter Life Line Hospitals Ltd was incorporated in 2007 as a multi-specialty tertiary and quaternary healthcare provider based out of Maharashtra. It is strong in the MMRDA and Thane districts and is also present in Pune and Indore. It currently operates 3 hospitals under the "Jupiter" brand located at Thane (near Mumbai), Pune, and Indore with total operational bed capacity of 1,194 beds. In addition, it is in the process of developing a multi-specialty hospital in Dombivli, near Kalyan with 500 beds and has just commenced construction earlier this year. It has over 1,300 doctors empanelled in its staff, which includes specialists, physicians, and surgeons across different medical faculties. Jupiter Life Line Hospitals offers very advanced and sophisticated neuro-rehabilitation services. This is done through dedicated robotic and computer-assisted neuro-rehabilitation techniques. All the hospitals are currently certified by the National Accreditation Board for Hospitals & Healthcare Providers (NABH) and accredited for medical testing by the NABL.

The company's offers inpatient and outpatient treatment across its major hospitals. Jupiter Life Line Hospitals is equipped with over 30 specialized treatments including bariatric surgery, dermatology, cardiology, gastroenterology, haematology, neurology, gynaecology, obstetrics, rheumatology, pain care, chest medicine, ENT, infectious diseases, oncology, mental health, orthopaedics, robotic knee replacement, dental care, endocrinology, internal medicine, nephrology, urology, and paediatrics. Over the years, Jupiter Life Line Hospitals Ltd has received accolades and awards across specializations. It provides specialized care to patients, including after care as well as specialized facilities for international patients.

The fund raised in the fresh issue component will be largely used to repay / prepay loans taken by the company and its material subsidiary. The IPO of Jupiter Life Line Hospitals Ltd will be lead managed ICICI Securities Ltd, Nuvama Wealth Management Ltd and JM Financial Ltd acting as the book running lead manages (BRLMs). KFIN Technologies Ltd (formerly Karvy Computershare Ltd) will be the registrar to the issue.