Mumbai-based multi-speciality hospital chain Jupiter Life Line Hospitals has received the capital markets regulator Securities and Exchange Board of India’s (SEBI) approval to raise funds through an initial public offering (IPO). It has also raised Rs 123 crore from institutional investors in the pre-IPO round.

Jupiter filed its preliminary IPO papers with SEBI in May. The company received SEBI’s final observation, equivalent to its approval, on August 11. Edelweiss Financial Services, JM Financial and ICICI Securities are the book-running lead managers of the IPO, and KFin Technologies is the registrar to the offer. 

The IPO consists of a fresh issue of equity shares worth up to Rs 615 crore and an offer-for-sale (OFS) of up to 44.5 lakh equity shares with a face value of Rs 10 each by the promoter group and other selling shareholders. With the completion of the pre-IPO placement, the fresh issue size will now be reduced.

In the pre-IPO round, the company issued 16.7 lakh shares for Rs 735 apiece for a total consideration of Rs 122.75 crore to institutional investors, including several SBI and Neuberger Berman funds, along with Ashoka India Equity Investment Trust, Think India Opportunities Master Fund and others. 

The OFS consists of up to 12.5 lakh shares by Devang Vasantlal Gandhi (HUF), up to 9 lakh shares by Devang Gandhi jointly with Neeta Gandhi, up to 10 lakh shares by Nitin Thakker jointly with Asha Thakker, and up to 4 lakh shares each by Anuradha Ramesh Modi jointly with Megha Ramesh Modi and Bhaskar P Shah (HUF). Other selling shareholders include Rajeshwari Capital Market, Vadapatra Sayee Raghavan, Sangeeta Ravat and Hasmukh Ravat.

As per the DRHP, proceeds from the IPO will be utilised to the extent of Rs 463.90 crore for repayment of debt availed by the company and its subsidiary and for general corporate purposes.

Jupiter Life Line operates hospitals in Thane, Pune and Indore, with a total bed capacity of 1,194 as of December 2022. It is in the process of developing a 6,00,000 sq feet multi-speciality hospital in Dombivli, Maharashtra, with a capacity of over 500 beds.