The ₹686-crore initial public offering of Yatharth Hospital & Trauma Care Services was subscribed fully on the Day 1 of issue opening. According to data available with the exchanges, IPO was subscribed 1.08 times.
The issue, which closes on Friday, comes at a price band of ₹285-300 a share. Retail investors and non-institutional investors were keen, as their respective portions received bids for 1.77 times and 1.25 times. Qualified institutional portion was subscribed 0.25 times.
While QIB portion is reserved up to 50 per cent; non-Institutional can bid for at least 15 per cent and retail investors up to 35 per cent. Market lot is 50 shares.
The IPO consists of a fresh issue of ₹490 crore and an offer for sale by existing promoters Vimla Tyagi, Prem Narayan Tyagi, and Neena Tyagi (65.51 lakh shares worth ₹196 crore).
Anchor investors
As part of the IPO process, the company has raised ₹205.96 crore via anchor book on Tuesday. In its filing to exchanges, the company said it has finalised the allocation of 68.65 lakh shares to 18 anchor investors at an issue price of ₹300 a share.
Marquee investors that participated in the anchor book included ICICI Prudential, Nippon Life, HDFC Mutual Fund, Aditya Birla Sun Life Trustee, Bandhan Mutual Fund, HSBC Global Investment Funds, SBI Life Insurance, Troo Capital, Carnelian Capital, BNP Paribas Arbitrage, Goldman Sachs, Max Life Insurance, Kotak Mahindra Life, and Jupiter India Fund.
Objects of the Fresh Issue
Yatharth proposes to utilise the net proceeds of the fresh issue towards funding the following objects: Repayment/prepayment, in full or part, of certain borrowings of the company and its subsidiaries AKS Medical & Research Centre Private Ltd and Ramraja Multispeciality Hospital & Trauma Centre Private Ltd; capital expenditure expenses of Yatharth for two hospitals - Noida Hospital and Greater Noida Hospital; to meet capital expenditure expenses of AKS and Ramraja; funding inorganic growth initiatives through acquisitions and other strategic initiatives; and general corporate purposes.
Yatharth Hospital & Trauma Care Services Limited (Yatharth) operates three super specialty hospitals located in Delhi NCR, i.e., at Noida, Greater Noida and Noida Extension, Uttar Pradesh.
Further, it acquired a 305-bedded multi-speciality hospital in Orchha, Madhya Pradesh near Jhansi, Uttar Pradesh which commenced commercial operations on April 10, 2022, and is one of the largest hospitals in Jhansi- Orchha-Gwalior region in terms of beds.
Its critical care program comprises 394 critical care beds, as of March 31, 2023. Further, its Noida Extension hospital with 450 beds is one of the largest hospitals in the Noida Extension, Uttar Pradesh region. As of March 31, 2023, it engaged 609 doctors and offers healthcare services across several specialities and super specialities.
Yatharth has demonstrated stable operating and financial performance and growth over the past three fiscals. Its EBITDA has grown at a CAGR of 41.29 per cent from ₹67.01 crore in FY21 to ₹133.76 million in FY23. Its net profit increased from ₹19.58 crore in FY21 to ₹44.16 crore in FY22 which further increased to ₹65.76 crore in FY23.