Yatharth Hospital IPO: Insights from the Gray Market and Details on its Opening Date, July 26
Yatharth Hospital IPO
Yatharth Hospital IPO: A Promising Offering from Noida’s Healthcare Leader
Details of the Upcoming IPO
The IPO of Noida-based Yatharth Hospital and Trauma Care Services is set to open on July 26, providing investors with an opportunity to participate in the company’s growth journey.
The subscription window for this IPO will be open until July 28. Yatharth Hospital has fixed the price band for the issue at Rs 285-300 per share, aiming to raise Rs 686.55 crore at the upper price band.
Both Fresh Issue and Offer for Sale (OFS) will be a part of this IPO, signaling the company’s expansion plans and the promoters’ partial exit from the company.
In the unlisted market, there are positive signals regarding the issue, with Yatharth Hospital’s shares commanding a premium of Rs 75.
IPO Related Details and Share Allotment
Under the issue, Yatharth Hospital plans to issue fresh equity shares worth Rs 490 crore, while up to 65.51 lakh equity shares will be offered for sale under OFS by the company’s promoters, including Vimla Tyagi, Prem Narayan Tyagi, and Nina Tyagi. Investors can bid for a minimum of 50 equity shares and in multiples of the same thereafter.
For retail investors, the minimum investment for one lot at the upper price band is Rs 15,000, with the option to apply for a maximum of 13 lots, amounting to Rs 1.95 lakh.
The IPO reserves 50% of the issue size for Qualified Institutional Buyers (QIBs), 15% for High-Net Worth Individuals (HNIs), and the remaining 35% for retail investors.
The Anchor Book opens a day before the public subscription and the shares will be allotted to successful investors on August 2.
The refund process for unsuccessful investors is expected to begin on August 3, while the listing of the company’s shares is scheduled for August 7.
The book-running lead managers to the issue are Intensive Fiscal Services Private Limited, Ambit Private Limited, IIFL Securities Limited, and Link Intime India Private Limited.
Pre-IPO Placement and Utilization of Funds
Before the IPO, Yatharth Hospital raised Rs 120 crore through a private placement (pre-IPO placement) of 40 lakh shares at Rs 300 per share.
The proceeds from the IPO will be utilized for various purposes, including fund repayment, capital expenditure for the hospital, and funding inorganic growth initiatives through acquisitions and strategic initiatives.
Additionally, the fund will also be allocated for general corporate purposes, further strengthening the company’s financial position.
Financial Performance and Business Overview
Yatharth Hospital has displayed robust financial performance, with revenue from operations reaching Rs 520.29 crore in the quarter ending March 2023, compared to Rs 228.67 crore in the corresponding quarter of the previous fiscal year.
Profits during the period stood at Rs 65.76 crore, a significant increase from Rs 19.58 crore in Q4 FY22.
Currently, the hospital chain operates three super-specialty hospitals in Delhi-NCR and one multi-specialty hospital in Madhya Pradesh, with a total capacity of 1,405 beds.
The hospitals have earned a reputation as top 10 private hospitals in the Delhi-NCR region and boast a team of more than 600 associated doctors.
Yatharth Hospital’s Unique Selling Proposition
Yatharth Hospital has positioned itself as a healthcare leader with a unique selling proposition that sets it apart from other players in the industry.
The hospital chain is renowned for providing top-notch medical services, state-of-the-art facilities, and personalized patient care.
With a team of highly skilled and experienced medical professionals, Yatharth Hospital has gained a reputation for offering advanced medical treatments and procedures across various specialties.
The company’s focus on patient-centric care and commitment to delivering superior healthcare services has earned it a loyal customer base and garnered positive word-of-mouth reviews.
Its dedication to maintaining high standards of medical care and continuously investing in cutting-edge medical technology has further solidified its position as a preferred healthcare destination in the region.
Market Potential and Growth Prospects
The demand for quality healthcare services has been steadily rising, driven by an increasing awareness of health and wellness among the population.
As healthcare needs continue to evolve, there is a growing demand for specialized medical facilities that offer comprehensive healthcare solutions.
Yatharth Hospital, with its super-specialty hospitals and multi-specialty facilities, is well-equipped to capitalize on this demand and cater to a diverse range of medical requirements.
Moreover, the ongoing advancements in medical technology and the emergence of innovative treatment options create an opportune environment for Yatharth Hospital to further expand its service offerings and strengthen its market position.
The funds raised through the IPO will provide the necessary capital to invest in state-of-the-art medical equipment, expand its existing facilities, and pursue strategic acquisitions to bolster its growth initiatives.
Corporate Governance and Ethical Practices
As investors consider participating in the Yatharth Hospital IPO, the company’s commitment to corporate governance and ethical practices stands as an essential aspect to evaluate.
Yatharth Hospital has maintained a strong track record of adhering to the highest standards of corporate governance, transparency, and accountability.
Its leadership team, including the founders and promoters, has demonstrated a vision for sustainable growth and value creation, thereby fostering investor confidence.
The company’s compliance with regulatory requirements and its dedication to ethical practices contribute to a favorable investment climate for potential shareholders.
Investors can trust that their investments will be utilized prudently and ethically, enhancing the attractiveness of Yatharth Hospital as an investment opportunity.
Conclusion
Yatharth Hospital’s upcoming IPO presents an enticing opportunity for investors to be part of a distinguished healthcare enterprise with a strong track record of financial performance and patient-centric care.
The company’s focus on growth, utilization of funds, and commitment to ethical practices reinforces its potential as a rewarding investment option.
As the demand for quality healthcare services continues to grow, Yatharth Hospital is well-positioned to capitalize on emerging opportunities, expand its market presence, and provide superior medical solutions to its patients.
With its promising growth prospects, strong business fundamentals, and visionary leadership, Yatharth Hospital is poised to make a significant impact in the healthcare sector and deliver value to its shareholders in the long term.
As investors look forward to participating in the IPO, they can anticipate being part of an organization that is dedicated to making a positive impact on people’s lives and contributing to the advancement of healthcare in the region.
