Yatharth Hospital IPO Date is announced now which would open for subscription on July 26, 2023. Yatharth Hospital and Trauma Care Services Limited is a multi-care hospital chain in India. Its IPO Price is attractively priced. Should you invest in Yatharth Hospital IPO? This article provides IPO Details, Dates, IPO Price Band, GMP, Analysis and do Yatharth Hospital IPO Review.
Also Read: PFC NCD July 2023 – Should you invest?
Yatharth Hospital IPO Details
| IPO Opening Date | 26-Jul-23 |
| IPO Closing Date | 28-Jul-23 |
| IPO Listing Date | 7-Aug-23 |
| Issue Type | Book Built Issue IPO |
| Face Value | Rs 10 per equity share |
| IPO Price band | Rs 285 to Rs 300 per equity share |
| Lot Size | 50 Shares |
| Min Order Quantity | 50 Shares |
| Listing at | BSE and NSE |
| Total Issue Size | Rs. 687 Crores |
| ย ย ย Fresh issue | ย ย ย Rs. 490 Crores |
| ย ย ย OFS | ย ย ย Rs. 197 Crores |
Yatharth Hospital IPO Reservation
| QIB shares offered | Not less than 50% of the offer |
| NII/HNI shares offered | Not more than 15% of the offer |
| Retail shares offered | Not more than 35% of the offer |
About Yatharth Hospital and Trauma Care Services Ltd
Yatharth Hospital and Trauma Care Services Limited, established in 2008, is a prominent multi-care hospital chain and one of the top 10 largest private hospitals in Delhi NCR.
With three super specialty hospitals in Noida, Greater Noida, and Noida Extension, Uttar Pradesh, the company boasts an impressive 450-bed facility at the Noida Extension location.
Additionally, the recent acquisition of a 305-bedded multi-specialty hospital in Orchha, Madhya Pradesh further strengthens their presence in the region.
Backed by a team of 370 skilled doctors, Yatharth Hospital offers a comprehensive range of healthcare services across various specialties and Centers of Excellence, ensuring exceptional medical care for their patients.
Yatharth Hospital and Trauma Care Services Ltd Financials
Here are the financials of the company.
| Financial Year ending / Period ending (Amt in Crores) | ||||
| Particulars | FY20 | FY21 | FY22 | FY23 |
|---|---|---|---|---|
| Total Assets | 287.2 | 308.8 | 486.0 | 426.0 |
| Total Revenue | 146.2 | 229.2 | 523.1 | 402.6 |
| Profit After Tax | -2.1 | 19.6 | 65.8 | 44.2 |
| Profit % | -1.40% | 8.55% | 12.57% | 10.97% |
| Net Worth | 54.3 | 72.5 | 183.0 | 116.9 |
| Total Borrowing | 184.6 | 186.1 | 263.8 | 258.2 |
Objects of the Issue
The IPO size is Rs 687 Crores. It has both OFS and fresh issue.
1) Offer for sale (OFS) for Rs 197 Crores: Under OFS, these are sold by selling share holders and proceeds would go to selling share holders and company would not get anything.
2) Fresh issue of Rs 490 Crores:
- Repayment/ prepayment, in full or part, of certain borrowings availed by the Company.
- Repayment/ prepayment, in full or part, of certain borrowings availed by the Subsidiaries, namely, AKS Medical & Research Centre Private Limited and Ramraja Multispeciality Hospital & Trauma Centre Private Limited.
- Funding capital expenditure expenses of the Company for two hospitals, namely, Noida Hospital and Greater Noida Hospital.
- Funding capital expenditure expenses of the Subsidiaries, AKS and Ramraja, for respective hospitals operated by them.
- Funding inorganic growth initiatives through acquisitions and other strategic initiatives.
- General corporate purposes.
How is Yatharth Hospital IPO Price Valuation?
The IPO price band is Rs 285 to 300 per share.
- If we consider last year FY23 EPS of Rs 10.09, P/E ratio works out to be 30x
- If we consider Last 3 Years Weighted EPS of Rs 7.77, P/E ratio works out to be 39x
- The listed peers like Healthcare Global Enterprises is trading at P/E 151x (Highest) and Narayana Hrudalaya is trading at P/E of 33x (Lowest) and industry average P/E is 66x.
- Hence, the IPO Price band at P/E of 30x to 39x is reasonably
What is Yatharth Hospital IPO GMP today?
As per the market sources, Grey market premium now is between Rs 50 to Rs 60 which is 20% premium.
What is the IPO Market Lot?
| Application | Lot Size | No. of Shares | Amount |
| Retail – Minimum | 1 | 50 | 15,000 |
| Retail – Maximum | 13 | 650 | 1,95,000 |
| S-HNI Minimum | 14 | 700 | 2,10,000 |
| B-HNI Minimum | 68 | 3350 | 10,05,000 |
What are the Expected Returns in this IPO?
Grey market premium is around 18% to 20%, which gives an indication that Yatharth Hospital IPO returns could be in similar lines of up to 20%.
Yatharth Hospital IPO Allotment & Listing Dates
| IPO Opens on | 26-Jul-23 |
| IPO Closes on | 28-Jul-23 |
| Basis of Allotment | 02-Aug-23 |
| Initiation of Refunds | 03-Aug-23 |
| Credit of Shares to Demat | 04-Aug-23 |
| Listing Date | 07-Aug-23 |
| Cut-off time for UPI mandate confirmation | 28-Jul-23 |
Yatharth Hospital and Trauma Care Services Competitive Strengths
- Among the leading super-specialty hospital in Delhi NCR with diverse specialty and payer mix
- Advanced and high-end medical equipment and technology
- Ability to attract quality doctors, nurses, paramedical, and other staff
- Experienced and qualified professional management team with strong execution track record
- Track record of stable operating and financial performance and growth
Yatharth Hospital IPOย – Positive Factors to invest
1) Company is among the leading super-specialty hospitals in Delhi NCR with diverse specialty and payer mix.
2) Over the four-year period, the company’s financials have shown positive growth trends. Total Assets increased steadily from 287.2 in FY20 to 426.0 in FY23, and Total Revenue experienced significant growth, peaking at 523.1 in FY22. Despite a loss in FY20, the Profit After Tax steadily improved, reaching 44.2 in FY23.
3) IPO price is reasonably priced compared to its peers.
Yatharth Hospital IPO – Risk or Negative Factors
1) Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will receive the net proceeds from the Offer for Sale.
2) The Offer Price, market capitalization to revenue multiple, price to earnings ratio, and EBITDA based on the Offer Price may not accurately represent the Company’s market price upon listing or in the future.
3) As a healthcare provider, the COVID-19 pandemic and strict restrictions have negatively impacted their business, operations, and financial performance. They may also face operational, reputational, medical, and legal challenges, including claims of malpractice and medical negligence, which could harm their reputation and prospects.
4) Their high fixed costs may negatively affect their profitability. Additionally, unfavorable pricing on medical supplies or the inability to pass on cost increases to payers could further impact their profitability.
5) The company plans to invest in capital expenditure and repay borrowing, but delays or changes in the deployment of funds may occur. Moreover, a significant portion of the proceeds is earmarked for a non-operational hospital that incurred losses in Fiscal 2023.
6) Integration challenges with acquisitions or investments could also have a negative impact on their overall performance.
7) Investors should read all internal and external risk factors from RHP before investing in this IPO.
Also Read: 5 Mutual Funds that generated up to Rs 1.9 Crores with 10K SIP in last 20 years
Yatharth Hospital IPO Review โ Should you Apply or not?
Investors should consider all positive and negative factors before investing in such IPOs.
Company is among the leading super-specialty hospitals in Delhi NCR with diverse specialty and payer mix. In the last 4 years, company financials shown positive trend. Its IPO price also reasonably priced.
On the other side, company would not receive any proceeds from OFS as it goes to selling share holders. High fixed costs can dent their profitability.
High risk investors who understand all these risk factors can invest in this IPO from medium to long term perspective.
FAQโs on Yatharth Hospital IPO
[sp_easyaccordion id=”34437″]
- Forex Robots and Copy Trading– Can You Combine Automation with Social Trading? - October 1, 2024
- 6 Momentum Index Mutual Funds (Underlying index with 30% to 40% CAGR returns in last 5 years) - September 21, 2024
- 11% Nido Home Finance NCD – Sep-2024 โ Details, Interest Rates and Review - September 17, 2024
Sir,
I am reader of your blogs, Today i found some abnormalities as below –
Article of Yatharth IPO is not correct. It mixed with Netweb technology details like Listing date, Utilization of Fresh Issue, etc. Kindly look into this matter and do the needful.
Apologies for the error. I have rectified this morning