Jupiter Hospitals to invest ₹ 300 crore to buy land, build hospitals

Jupiter Life Line Hospitals, a recently listed healthcare provider, is gearing up for a transformative phase as it strategically deploys its substantial cash reserves. In an interview with CNBC-TV18, Ankit Thakker, the CEO of the hospital chain, outlined the key initiatives that will shape the future of the company.

Thakker revealed that a significant portion of the cash on the balance sheet will be allocated to acquiring prime land in the western regions of India.

“We would like to buy more land and build more hospitals. So currently, the ₹ 300 crore plus that we have as net cash, we plan to use for land acquisitions in western India and the cash which we will save month on month by virtue of becoming debt-free, we plan to plough back into construction of the new hospitals,” he said.

The company plans to add two more units in western India over the next couple of years, other than the under-construction project at Dombivali on the outskirts of Mumbai.

Shares of Jupiter Life Line Hospitals debuted on Dalal Street on September 18. The stock began trading at ₹973, at a 32% premium to the initial public offer (IPO) issue price of ₹735. Post-listing, the stock jumped as high as ₹1,028.5. On November 13, the stock was down nearly 2.6% at around ₹999 apiece.

Highlighting recent achievements, Thakker shared the positive impact of adding beds in Pune, which has contributed to improved occupancy rates.

“On the occupancy side, we added a few beds in Pune a couple of months back which are now beginning to get occupied. That is helping the occupancy percentage go up,” he said.

The CEO is optimistic about the growing occupancy levels in Indore.

“The Indore hospital is also now getting matured and settled down and we are seeing better and improved occupancies in Indore,” he added.

Thakker disclosed that the average revenue per occupied bed (RPOB) currently stands at an impressive ₹53,000.

He also emphasised plans to add more beds in Indore as the business matures, foreseeing high single-digit EBITDA (earnings before interest, taxes, depreciation, and amortisation) in the region this fiscal year.

“In this year, we should be in the high single-digit EBITDA number,” he said.

Jupiter Life Line Hospitals has a market capitalisation of ₹6,671 crore and is headquartered in Mumbai. CNBCTV18