Yatharth Hospital IPO allotment tomorrow; grey market premium up 70% in a week

Yatharth Hospital and Trauma Care Services is scheduled to finalize the basis of allotment of its shares tomorrow, that is on Wednesday, August 2, 2023. The Rs 687-crore initial public offering (IPO) ran for three days and was concluded on July 28 after opening for bidding on July 26.

The specialty hospital chain's IPO, which was sold in the range of Rs 475-500 apiece, had received a solid response from the investors, being overall subscribed more than 37.28 times. The portion for qualified institutional bidders (QIBs) was booked 86.37 times, while the portions for non-institutional bidders (NIIs) and retail investors were booked 38.62 times and 8.66 times, respectively.

The grey market premium of the company has remained firm, ever since the conclusion of the issue. Last heard, the listing bound player was commanding a premium of close to Rs 85 per share in the grey market, rising about 70 per cent in a week from Rs 50 apiece on July 26. The company is likely to deliver a decent listing pop, as per the current grey market signals.

Incorporated in 2008, Yatharth Hospital is a hospital chain which operates four-super specialty hospitals located in Noida, Greater Noida, and Noida Extension. The company acquired a 305-bedded multi-specialty hospital in Orchha, Madhya Pradesh to extend its operations and services.

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Majority of the brokerage were positive on the issue and have suggested subscribing for the issue. However, select brokerage firms are skeptical over the issue on the back of high fixed cost, debt-heavy operational expenses, dependency on select special facilities and government deals compressing the margins.

Intensive Fiscal Services, Ambit and IIFL Securities are the book running lead managers to the issue, while Link Intime India has been appointed as the registrar to the issue. The stock will be listed on both BSE and National Stock Exchange (NSE).

Investors, who had bid for the issue, can check the allotment status on the Bombay Stock Exchange (BSE) website, which is https://www.bseindia.com/investors/appli_check.aspx. They can check Equity as issue type and select the company name to proceed. One needs to only add application numbers and the PAN card ID before checking 'I am not a Robot' and hitting submit.

Investors can also check the allotment status on the online portal of Link Intime (https://linkintime.co.in/MIPO/Ipoallotment.html), the registrar to the issue and then select the company name from all options, if the allotment is finalized.  Fill either application number, demat Account number, or PAN ID and the captcha accurately, before hitting submit.

The registrar is a Sebi-registered entity, qualified to act as such and which electronically processes all applications and carries out the allotment process, as per the prospectus. The registrar is responsible for complying with the timelines for updating the electronic credit of shares to successful applicants, dispatching and uploading refunds, and attending to all investor-related queries after the issue is completed.

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Bidders who could not get allotment in the IPO may see the initialization of refunds on Thursday, August 3. Others, who would be allotted shares may see the credit of shares, in the Demat account by Friday, August 4. The listing of the IPO is likely on Monday, August 7.

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