Yatharth Hospital and Trauma Care Services is looking to raise about Rs 687 crore via primary markets; Should you invest?
Yatharth Hospital IPO Subscription Day 1: The initial public offer (IPO) of Yatharth Hospital and Trauma Care Services Ltd has opened for subscription on Wednesday, 26 July, and close on Friday, 28 July. Yatharth Hospital and Trauma Care Services is looking to raise about Rs 687 crore via primary markets, which includes a sale of fresh equity shares worth Rs 490 crore and an offer for sale (OFS) of around 65.52 lakh equity shares by its promoters including Vimla Tyagi, Prem Narayan Tyagi and Neena Tyagi.
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Yatharth Hospital IPO price band: The company has fixed the price band at Rs 285 to Rs 300 per equity share for the proposed initial public offer.
Issue Details and Yatharth Hospital IPO Size: Yatharth Hospital IPO consists of a fresh issuance of shares for ₹490 crore and an offer by the promoters Vimla, Prem Narayan, and Neena Tyagi to sell 65.51 lakh equity shares.
Yatharth Hospital IPO Lot Size: Bids can be made for a minimum of 50 equity shares and in multiples of 50 equity shares thereafter.
Yatharth Hospital IPO Objective: Yatharth Hospital IPO intends to use the net proceeds to pay off or advance debt, Fund capital expenditure expenses for the company’s two hospitals, Noida Hospital and Greater Noida Hospital, as well as for the hospitals run by the company’s subsidiaries AKS and Ramraja. Additionally, fund inorganic growth initiatives through acquisitions and general corporate purposes.
Yatharth Hospital IPO Reservation: Yatharth Hospital IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors.
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Allotment and Listing of Yatharth Hospital IPO Details: The basis of allotment of shares will be finalised on Wednesday, 2 August and the company will initiate refunds on Thursday, 3 August, while the shares will be credited to the demat account of allottees on Friday, 4 August. Yatharth Hospital IPO shares are likely to be listed on BSE and NSE on Monday, 7 August.
Link Intime India Private Ltd is the registrar to the public offer. The three book running lead managers associted with the offer are Intensive Fiscal Services Private Ltd, Ambit Private Ltd, and IIFL Securities Ltd.
Yatharth Hospital IPO GMP Today: According to topsharebrokers.com, Yatharth Hospital IPO grey market premium (GMP) today is Rs 55. This indicates that Yatharth Hospital shares were trading at a premium of Rs 55 in the grey market on Wednesday.
Should you invest?
Brokerage firms are mostly positive on the issue and have suggested subscribing for the issue. However, select brokerage firms are skeptical over the issue on the back of high fixed cost, debt-heavy operational expenses, dependency on select special facilities and government deals compressing the margins. Here’s what a host of brokerage firms said about the issue:
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India’s current healthcare expenditure is largely dominated by private expenditure. North India regions including Haryana, Uttar Pradesh and Uttarakhand have lower than average doctor and nurse density per 10,000 population. This is expected to improve going ahead while favouring the company’s expansion plans, said Reliance Securities.
“Their recent acquisition of the Jhansi-Orchha hospital is aimed at further expanding into new geographies and growing their presence in the regional healthcare market. They intend to focus on building capabilities for new, more advanced specialties which have high demand in the respective micro markets and deliver a higher ARPOB,” it added with a subscribe rating.
Yatharth has bed capacity of 1405 beds out of which 394 beds are engaged for critical care. Prices of the hospitals are 20 per cent cheaper than peers to make their brand known among people. They have expansion plans near parts of Uttar Pradesh and Delhi. They have reported robust financial performance across the major parameters, said Canara Bank Securities with ‘subscribe’ tag.
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“This issue is available at P/EPS of 29.73 times, which is lower as compared to peer competitors. This cannot be an apple-to-apple comparison, as this hospital is mainly concentrated in Delhi and they are emerging as a multi speciality hospital among renowned peers. Their revenue contributes majorly 34% from government deals which can stretch the debtor days and margin,” it said.
