Yatharth Hospital and Trauma Care IPO: Essential Details to know

20 Jul 2023 , 01:59 PM

The initial public offer of hospital chain Yatharth Hospital and Trauma Care Services that 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 around the area.

The issue will be opening on July 26 and will close on July 28 to raise Rs 490 crore through fresh issue of equity shares and an offer for sale of 6,551,690 shares by promoters Vimla Tyagi, Prem Narayan Tyagi, and Neena Tyagi.

Important details of Yatharth Hospital and Trauma Care IPO:

• IPO price: The company has fixed the price band at Rs 285 to Rs 300 per equity share for the initial public offer.
• The company has reserved 35% of the issue size for retail investors, 15% for non-institutional investors while not more than 50% of the issue for institutional investors
• The company will use proceeds from the fresh towards repayment/ prepayment of certain borrowings availed by the company and its subsidiaries, namely, AKS Medical & Research Centre Private (AKS) and Ramraja Multispeciality Hospital & Trauma Centre Private Limited. The proceeds will also be used for funding capital expenditure expenses of the company’s two hospitals — Noida Hospital and Greater Noida Hospital.
• The company has already raised Rs 120 crore from private placement by selling 40 lakh equity shares at Rs 300 per share. The anchor book for the IPO will open on July 25, ahead of IPO.
• The issue will be managed by Intensive Fiscal Services, Ambit, and IIFL Capital Services, serving as the merchant bankers.
• Yatharth Hospital’s revenue from operations witnessed significant growth for the three months ending on March 31, 2023, increasing from Rs 228.67 crore in the same period of the previous fiscal year to Rs 520.29 crore. Moreover, the profit for the corresponding period showed substantial improvement, rising from Rs 19.58 crore in Q4FY22 to Rs 65.76 crore.
• The basis of allotment of shares will be determined on Wednesday, 2 August, and the company will commence the refund process on Thursday, 3 August. Subsequently, the shares will be credited to the demat accounts of the allottees on Friday, 4 August.
• The shares of Yatharth Hospital will list on BSE and NSE.