Yatharth Hospital, Trauma Care Services announce IPO to raise Rs 490 cr

Around 1,405 bed Yatharth Hospital and Trauma Care Services announced on Friday plans to bring an initial public offering (IPO) to raise around Rs 490 crore to help in its expansion plans in northern India. The company has already raised Rs 120 crore through a pre-IPO placement of nearly 4 mn equity shares at the price of Rs 300 apiece.  It said that this has resulted in a reduction in the fresh issue size from Rs 610 crore to Rs 490 crore

The issue will open for subscription from July 26 to July 28 while anchor investors will be able to bid on July 25. The IPO comprises a fresh issuance of shares worth Rs 490 crore and an offer by the promoters Vimla Tyagi, Prem Narayan, and Neena Tyagi to sell 6.55 mn equity shares.  Founded in 2008, Yatharth Hospital has a presence in Noida, Greater Noida, and Noida Extension and Jhansi (Orchha) with four hospitals. The patient revenue for the hospital grew 30 percent year-on-year as it made Rs 451.9 crore  in 2022-2023 compared to Rs 346.3 crore in 2021- 2022.

Yatharth Tyagi, whole time director, Yatharth Hospital & Trauma Care Services Limited said in a press meet on Friday that “Of the total proceeds from the public issue, Rs 133 crore will be utilised for capital expenditure to acquire advanced medical equipment across its current four hospitals. The company’s further expansion plans will also be constrained in the northern regions of the country." 

On the concern of not meeting the target  one of the lead BRLM (Book Running Lead Manager) Vikas Khatter MD, Co Head of investment banking of Ambit Private stated “We already have a strong demand from the anchor side, both in FIIs (Foreign Institutional Investors) and the long-running mutual funds, We see no concern of a situation where we fall short of the target. In the worst case scenario also, we (Yatharth) have enough cushion to receive less amount on the offer for sale.” Yatharth Hospital has reserved not more than 50 percent of the shares in the IPO for Qualified Institutional Buyers (QIB), at least 15 percent for non-institutional investors (NII), and minimum 35 percent of the offer is reserved for retail investors.