Yatharth Hospital Raises ₹120 Crore via Pre-IPO Placement

Yatharth Hospital Pre-IPO

Yatharth Hospital & Trauma Care Services, a Noida-based hospital chain, has successfully raised Rs 120 crore through a Pre-IPO placement round.

This significant capital infusion has resulted in a reduction in the size of the company’s proposed Initial Public Offering (IPO).

In the Pre-IPO placement, Yatharth Hospital & Trauma Care Services has allotted approximately 40 lakh shares at a price of Rs 300 per share. The allocation of these shares took place on July 6.

Among the investors in the Pre-IPO placement, Plutus Wealth Management LLP made a substantial investment of Rs 60 crore in the company. Think India Opportunities Master Fund LP acquired shares worth Rs 30 crore.

Additionally, veteran investor Vikas Vijaykumar Khemani invested Rs 10 crore, while Rosy Blue Diamonds and Viraj Russell Mehta made investments of Rs 13 crore and Rs 7 crore, respectively, in Yatharth Hospital & Trauma Care Services.

The Pre-IPO placement round allowed the hospital chain to secure funds from these investors before the IPO, enabling it to strengthen its financial position and pursue growth opportunities.

By raising capital through this round, Yatharth Hospital & Trauma Care Services has potentially reduced its reliance on the IPO for funding its expansion plans and other strategic initiatives.

The participation of prominent investors, such as Plutus Wealth Management LLP and Think India Opportunities Master Fund LP, underscores the confidence in Yatharth Hospital & Trauma Care Services’ business model and growth potential.

The involvement of experienced investors like Vikas Vijaykumar Khemani further adds to the credibility and reputation of the company.

The capital raised from the Pre-IPO placement will be utilized by Yatharth Hospital & Trauma Care Services to strengthen its infrastructure, enhance medical facilities, expand its network, and improve patient care services.

This infusion of funds will contribute to the hospital chain’s ability to provide quality healthcare services and meet the growing demand in its operational areas.

Overall, the successful Pre-IPO placement round showcases investor confidence in Yatharth Hospital & Trauma Care Services’ future prospects.

The capital raised from this placement will support the company’s growth trajectory, setting the stage for its forthcoming Initial Public Offering and positioning it as a prominent player in the healthcare sector.

Yatharth Hospital & Trauma Care Services had obtained approval from its board of directors and shareholders for the pre-IPO placement on July 5.

Subsequently, as a result of the successful pre-IPO placement, the company decided to adjust the size of the fresh shares being offered in its Initial Public Offering (IPO) from Rs 610 crore to Rs 490 crore.

The revised IPO plan for Yatharth Hospital now comprises a fresh issue of shares amounting to Rs 490 crore, in addition to an offer for sale of 65.51 lakh shares by the promoters.

The offer for sale allows the promoters of the company to sell a portion of their equity stake to the public during the IPO.

Among the promoters participating in the offer for sale, Vimla Tyagi, Prem Narayan Tyagi, and Neena Tyagi have decided to sell their respective stakes in the company.

This provides an opportunity for the promoters to realize their investments and potentially unlock value. The offer for sale structure allows the promoters to monetize their shareholding while providing the public with an opportunity to participate in the company’s growth.

By reducing the size of the fresh shares in the IPO and incorporating the offer for sale, Yatharth Hospital aims to strike a balance between raising capital for its growth initiatives and providing an exit opportunity for the promoters.

The decision to adjust the IPO size and include the offer for sale aligns with the company’s objective of achieving an optimal capital structure and ensuring a successful listing.

The funds raised from the IPO will be utilized for various purposes, including expanding the hospital chain’s infrastructure, enhancing medical facilities, investing in technology, and meeting working capital requirements.

This infusion of capital will enable Yatharth Hospital to further strengthen its presence in the healthcare sector and provide quality healthcare services to a wider population.

The revised IPO structure with a combination of fresh issue and offer for sale, along with the participation of the promoters, provides potential investors with an opportunity to invest in the growth story of Yatharth Hospital & Trauma Care Services.

Yatharth Hospital & Trauma Care Services has allocated shares at a price of Rs 300 each during the pre-IPO placement.

If this price is considered as the IPO price, the company has the potential to raise a total of Rs 806.55 crore from its Initial Public Offering (IPO), which includes the funds raised through the pre-IPO placement.

The funds received from the issuance of new shares in the IPO will be allocated towards various purposes outlined by the company.

Yatharth Hospital intends to utilize the capital raised to repay existing debt, enabling it to improve its financial position and reduce interest obligations. The repayment of debt contributes to the overall financial stability of the company and enhances its ability to invest in growth opportunities.

Additionally, the funds will be allocated towards capital expenditure. This includes investments in expanding and upgrading infrastructure, acquiring medical equipment and technology, and enhancing the overall facilities and patient experience.

By investing in capital expenditure, Yatharth Hospital aims to improve the quality of its healthcare services and attract a broader patient base.

The company also expressed its intention to explore opportunities for inorganic growth. This indicates that Yatharth Hospital may consider strategic acquisitions or partnerships to expand its operations, enter new markets, or diversify its service offerings.

Inorganic growth initiatives can enable the company to capitalize on synergies, enhance market share, and accelerate its growth trajectory.

The approval from the Securities and Exchange Board of India (SEBI) for the IPO in August 2022 marked a significant milestone for Yatharth Hospital & Trauma Care Services.

This regulatory approval allows the company to move forward with its plans to offer shares to the public and list on the stock exchanges.

By raising capital through the IPO, Yatharth Hospital aims to strengthen its financial position, pursue growth opportunities, and provide investors with an opportunity to participate in the company’s future success.

The utilization of funds for debt repayment, capital expenditure, and inorganic growth initiatives aligns with the company’s strategic objectives and reinforces its commitment to enhancing its healthcare services and expanding its footprint in the industry.