Shares of Yatharth Hospital and Trauma Care Services (Yatharth) made a muted debut on the bourses today, August 7. The stock listed at ₹306.10, at a premium of 2 percent from its issue price of ₹300. Meanwhile, on BSE, the stock listed at ₹304, a premium of 1.33 percent to its IPO price.
The ₹687-crore issue of Yatharth opened for subscription on Wednesday, 26 July. The issue, which has a price band of ₹285-300 per share, closed for subscription on Friday, 28 July. This was the fourth offering in July after Netweb Tech, Senco Gold and Utkarsh Small Finance Bank.
The public issue received a solid response from the investors and was subscribed to 37.28 times in the 3 days. It received bids for 59.72 crore shares against 1.60 crore shares on offer. The portion for qualified institutional bidders (QIBs) was booked 86.37 times, while the portions for non-institutional bidders (NIIs) and retail investors were subscribed 38.62 times and 8.66 times, respectively.
Yatharth Hospital IPO consisted 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.
The company 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.
Incorporated in 2008, Yatharth Hospital and Trauma Care Services Limited is a multi-care hospital chain. They rank among the top 10 largest private hospitals in the National Capital Region of Delhi. Yatharth Hospital presently operates three super specialty hospitals situated in Delhi NCR, i.e., at Noida, Greater Noida, and Noida Extension, Uttar Pradesh. Further, Noida Extension Hospital has 450 beds and is one of the largest hospitals in the area.
The company's revenue from operations grew at a CAGR of 51 percent over FY21-FY23 from ₹229 crore to ₹520 crore in FY23 led by a rise in in-patient volumes (46 percent CAGR over same period), bed occupancy levels and an increase in average revenue per occupied bed.
Most brokerages had a ‘subscribe’ rating on the issue on the back of reasonable valuations, healthy financials, stable margins, strategic acquisition, and promising industry outlook.