The initial public offering (IPO) of Yatharth Hospital and Trauma Care Services opened for subscription on Wednesday (July 26). The hospital chain has set the price band for the issue at Rs 285-300, with a lot size of 50 equity shares. The issue will conclude on Friday, July 28, 2023
So far on the first day of booking, Yatharth Hospital IPO has been booked 52%. Retail investors were at the forefront on debut, buying 72% shares of the reserved portion, while the part set aside for high networth individuals was booked 72%. Qualified institutional buyers also put in bids, subscribing for 2,100 equity shares against an allotted quota of 46.45 lakh equity shares
Yatharth Hospital and Trauma Care Services is looking to raise about Rs 687 crore via primary markets, which includes a sale of fresh equity shares worth Rs 490 crore and an offer for sale (OFS) of around 65.52 lakh equity shares by its promoters including Vimla Tyagi, Prem Narayan Tyagi and Neena Tyagi
Yatharth IPO shares were commanding a grey market premium (GMP) of Rs 55-Rs 60 today, according to analysts dealing in unlisted securities. The grey market is an unofficial market where the IPO shares can be bought and sold till the listing on the bourses
Yatharth has witnessed steady growth in its top and bottom lines, with the PAT margin growing from 8.57% to 12.64% and its ROE improving from 25.06% to 35.95% during FY 21-23. The company is likely to retire debt from the IPO proceeds which is expected to improve its profitability. The issue is fairly valued, said Stoxbox with a 'subscribe' tag
Yatharth has a bed capacity of 1,405 beds out of which 394 beds are engaged for critical care. Prices of the hospitals are 20% cheaper than peers to make their brand known among people. They have expansion plans near parts of Uttar Pradesh and Delhi. They have reported robust financial performance across the major parameters, said Canara Bank Securities with 'subscribe' tag
"At the upper price band, Yatharth is available at a P/E of 39.2 times, based on FY23 EPS, which appears to be reasonably priced compared to its peers. Considering its consistent topline growth, stable margins, strategic acquisition, revival of medical tourism, and promising industry outlook, we assign a 'subscribe' rating on a medium to long-term basis," said Geojit Financial
Yatharth is among the leading super specialty hospitals in Delhi NCR, operates three super specialty hospitals in Delhi-NCR with diverse specialty and payer mix. It has an experienced and qualified professional management team with a strong execution track record. It has a track record of stable operating and financial performance and growth, said Hensex Securities with a subscribe rating
"We assign 'subscribe' rating to this IPO as the company is one of the leading super-specialty hospitals in Delhi NCR; this institution boasts a diverse range of specialties and payer mix, demonstrating a track record of consistent and stable operating and financial performance, with sustained growth. Also, it is available at a reasonable valuation compared to its peers," said Marwadi Financial Services
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