Yatharth Hospital IPO To Open On July 26; Details On GMP, Price Bands, Allotment, Listing, And Much More

Delhi NCR-based Yatharth Hospital and Trauma Care Services is set to launch its initial public offering (IPO) on July 26. Subscriptions in this IPO will be available for three days and will end on July 28. The multi-care hospital chain plans to list its proposed equity shares in the IPO on BSE and NSE. The company is led by a family of doctors, Dr Ajay Kumar Tyagi and Dr Kapil Kumar, who have more than 17 years of experience in the field.

On Tuesday, the grey market premium of Yatharth Hospital IPO is at Rs 75 per share. As per Chittorgarh, this GMP indicates an estimated listing of Rs 325 apiece on exchanges, higher by 25% from the IPO upper price band.

Here are 10 key highlights of the IPO:

1. Issue size: The IPO comprised a fresh issue worth Rs 490 crore and an offer for sale (OFS) of up to 6,551,690 equity shares. Overall, a total of 2,37,44,672 equity shares will be offered for under the IPO.

2. Under the offer for sale, promoter group selling shareholders to participate are --- Vimla Tyagi to offload 3,743,000 equity shares, Prem Narayan Tyagi to sell 2,021,200 equity shares, and Neena Tyagi to sell 787,490 equity shares.

3. Price band: The price band for the IPO is fixed at the lower end of Rs 285 apiece and the higher end of Rs 300 apiece. The face value for the proposed equity shares is to the tune of Rs 10 each.

4. Shares reservation: Of the total IPO size, 50% of the portion will be reserved for qualified institutional buyers (QIBs), while 15% will be kept for non-institutional investors (NIIs) and rest of 35% will be allocated to retail individual investors (RIIs).

5. IPO dates: The IPO will open on July 26 and will be available for subscription till July 28. Before the IPO, anchor investors bidding will be allowed on July 25.

6. Lead managers: Intensive Fiscal Services, Ambit Private Limited, and IIFL Securities are the book-running lead managers for the IPO. While Link Intime India is the registrar for the issue.

7. Proceeds: The company plans to utilise proceeds from the fresh issue for repayment of certain borrowings; repayment of borrowings availed by its subsidiaries such as AKS Medical & Research Centre and Ramraja Multispeciality Hospital & Trauma Centre. Further, a part of the proceeds will be used for funding CAPEX for its two hospitals namely Noida Hospital and Greater Noida Hospital. Also, it will fund CAPEX for subsidiaries AKS and Ramraja, for respective hospitals operated by them. Also, funding will be made for inorganic growth initiatives through acquisitions and other strategic initiatives; and general corporate purposes. The proceeds arising from OFS will not be utilised by the company and will be transferred to the selling shareholders.

8. Allotment dates: After the IPO, the basis of allotment of equity shares is expected to take place on August 2, while the initiation of refunds will be carried out on August 3rd, as per Chittorgarh report. Investors can expect the shares to be credited in their Demat accounts by August 4, 2023.

9: Listing: The proposed equity shares in the IPO will be listed on both exchanges BSE and NSE. The market debut is expected on August 7.

10. The company plans to continue improving its quality of care and operational efficiencies. Further, it is planning to introduce new specialties at its existing hospitals such as radiation therapy to their oncology department at hospitals located in Noida Extension and Jhansi-Orchha. Also, it aims to augment scale through the organic and inorganic manner in current markets and expand into adjacent regions

Yatharth Hospital and Trauma Care Services' multi-care hospital chains which is Noida Extension Hospital and Greater Noida are the eighth and 10th largest private hospital in
the National Capital Region of Delhi ("Delhi NCR"), respectively, in terms of number of beds in Fiscal 2023.

As of March 31, 2023, the company's number of operational beds grew at a CAGR of 27.52% to 1,405 including 305 beds at its Jhansi-Orchha hospital from 864 beds as at March 31, 2021.