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Mumbai-based private healthcare provider, Jupiter Hospital, has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (Sebi) for an Initial Public Offering (IPO) slated to raise between Rs 900 and 1,100 crores. The filing, which was made last week, unveils an ambitious fundraising plan to fuel the hospital's growth and debt management.
According to the DRHP, the hospital aims to generate Rs 615 crore through a fresh issue, accompanied by an Offer for Sale (OFS) of 44,50,000 shares. Informed sources also reveal the possibility of a pre-IPO placement amounting to Rs 123 crore.
The IPO will not affect the shareholding structure of the key promoters, including Dr. Ajay Thakker, Dr. Ankit Thakker, and Western Medical Solutions LLP, who have chosen to retain their current stakes.
Previously, Economic Times (ET) had been the first to break the news about Jupiter Hospital's intention to file the DRHP back in March this year.
The proceeds from the IPO will primarily be directed towards the expansion of the hospital's network and potential debt reduction. Jupiter Hospital, a major healthcare player in Western India, has already embarked on constructing a state-of-the-art quaternary care facility in Dombivli, Maharashtra. The construction, which began in April 2023, is part of a broader plan that also includes the repayment of Rs 463 crore in debt and addressing other general corporate expenses.
Presently, Jupiter Hospital operates three hospitals with a total capacity of 1,194 beds. The facilities offer a comprehensive range of over 30 medical specialties including organ transplant, oncology, orthopaedics, cardiology, paediatrics, and neurology, to name a few.
As of March 31, 2022, Jupiter's revenue from operations stood at Rs 733 crore, while the revenue for the nine months ending December 31, 2022, was reported at Rs 650 crore. The IPO issue is being managed by ICICI Securities, Edelweiss Financial Services, and JM Financial.
In conclusion, Jupiter Hospital's IPO represents a significant step in its growth strategy, with plans for expansion and debt reduction being key priorities. This move reflects the growing trend of private healthcare providers in India seeking public funding to fuel their expansion and improve healthcare infrastructure. With the promoters retaining their stakes, it shows their confidence in the company's prospects.
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