The healthcare sector in India is considered to be one of the biggest pillars of the economy. The past few years have seen a significant rise in the healthcare sector stocks as well as the FDI flow into this sector. With the increasing demand and awareness for healthcare in India, the sector is estimated to achieve significant growth over the coming years. Investors looking to tap onto the growth opportunity offered by healthcare sector can explore the IPO offering from Yatharth Hospital and Trauma Care Services Limited.
Yatharth Hospital and Trauma Care Services Limited IPO will open for subscription from 26th July 2023 to 28th July 2023.
Here are all the important details of Yatharth Hospital and Trauma Care Services Limited, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.
Read More: Top 5 stocks in Healthcare Sector
IPO Details
The key details of Yatharth Hospital and Trauma Care Services Limited are as under.
- IPO Size
The size of the IPO and different categories of the issue are:
| Category | Details |
| IPO Opening Date | 26th July 2023 |
| IPO Closing Date | 28th July 2023 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face Value of shares | Re. 10 per share |
| IPO Price Band | Rs. 285 – Rs. 300 per share |
| IPO Size | Rs. 687 crores (2,28,85,023 shares) |
| Offer for Sale | Rs. 197 crores (65,51,690 shares) |
| Fresh Issue | Rs. 490 crores (1,63,33,333 shares) |
- IPO Dates
The important dates for Yatharth Hospital and Trauma Care Services Limited are highlighted below:
| Event | Date |
| Opening date | 26th July 2023 |
| Closing Date | 28th July 2023 |
| Allotment date | 2nd August 2023 |
| Refund Date | 3rd August 2023 |
| Share Credit Date | 4th August 2023 |
| Listing Date | 7th August 2023 |
- IPO Lot Sizes
Investors can subscribe to Yatharth Hospital and Trauma Care Services Limited shares in pre-defined lots. The details of the lot sizes for this IPO are mentioned below:
| Category | Details |
| Investments in lots | Minimum – 1 lot Maximum – 13 lots |
| Investment amount | Minimum – Rs. 14,250 – 15,000 Maximum – Rs. 1,95,000 |
| Shares | Minimum – 50 Maximum – 650 |
- IPO Reservation
Here’s the summary of reservation for different applicant categories in this IPO:
| Category of Investor | Reservation Percentage |
| Retail Individual Investors | 35% |
| QIB (Qualified Institutional Buyers) | 50% |
| NII (Non-Institutional Bidders) | 15% |
Yatharth Hospital and Trauma Care Services Limited IPO Objectives
This IPO is a combination of an Offer for Sale and a Fresh Issue. The proceeds from the issue will be utilised in the following manner.
- The primary use of the proceeds will be towards repayment/ prepayment in part or in full of certain borrowings of the company as well as that availed by the subsidiaries namely, AKS Medical & Research Centre Private Limited and Ramraja Multispeciality Hospital & Trauma Centre Private Limited.
- The proceeds will also be used for the funding of the capital expenditure expenses of the company for two hospitals, namely, Noida Hospital and Greater Noida Hospital as well as that of its subsidiaries AKS and Ramraja, for respective hospitals operated by them.
- Company will also use the IPO proceeds for Funding inorganic growth initiatives through acquisitions and other strategic initiatives.
- Finally, the balance proceeds will be used to meet general corporate expenses.
Top things to know about Yatharth Hospital and Trauma Care Services Limited IPO
Yatharth Hospital and Trauma Care Services Limited, established in 2008, is a prominent multi-care hospital chain that ranks among the top 10 largest private hospitals in the National Capital Region of Delhi. Currently, the hospital operates three state-of-the-art super specialty hospitals in the Delhi NCR region, strategically located in Noida, Greater Noida, and Noida Extension, Uttar Pradesh. Notably, the Noida Extension Hospital stands out with its impressive 450-bed capacity, making it one of the largest healthcare facilities in the area. The hospital is now aiming to expand its operations and enhance its healthcare services. It has acquired a 305-bed multi-specialty hospital which is located in Orchha, Madhya Pradesh. This acquisition further strengthens the hospital’s presence and accessibility in the region, offering advanced medical facilities to the local community.
The hospital boasts a team of 370 highly skilled and dedicated doctors, proficient in various specialties and super specialties. Yatharth Hospital’s excellence is exemplified through its specialized Centers of Excellence (COE), which encompass a range of medical disciplines including,
- Centre of Medicine
- Centre of General Surgery
- Centre of Gastroenterology
- Centre of Cardiology
- Centre of Nephrology & Urology
- Centre of Pulmonology
- Centre of Neurosciences
- Centre of Pediatrics
- Centre of Gynaecology
- Centre of Orthopedics, and Spine & Rheumatology.
Financials of the company
Yatharth Hospital and Trauma Care Services Limited’s financials are given in the table below:
| Year | Total Assets (Rs. in cr) | Total Revenue (Rs. in cr) | Profit after Tax (Rs. in cr) | Basic EPS | Return on Net Worth |
| Mar-2023 | 486 | 520 | 65 | Rs.10.09 | 35.95% |
| Mar-2022 | 426 | 401 | 44 | Rs.6.78 | 37.78% |
| Mar-2021 | 309 | 229 | 19 | Rs.2.77 | 25.06% |
(Source: RHP)
Strengths of the company
Some of the key strengths of Yatharth Hospital and Trauma Care Services Limited that investors can take note of are
| Category | Details |
| Business model | The hospital is a leading name as a super specialty hospital in Delhi NCR region and has advanced and high-end medical equipment and technology, state-of-the-art imaging equipment.They also have a track record of stable operations, financial performance, and growth |
| Other merits | They have an experienced and highly professional management team with a strong execution track record and the ability to attract quality doctors, nurses, paramedical, and other staff |
Risks of investment
Here are some of the risks that investors of Yatharth Hospital and Trauma Care Services Limited IPO should know:
| Category | Details |
| Business viability and profitability | The company has its operations concentrated in Delhi NCR and major portion of revenues is dependent on specific specialties. Any adverse situation in either aspect can be detrimental to the interest of the company. The business is dependent on highly qualified doctors, nurses, and other healthcare professionals and its ability to retain them for its success and survival.The business can be adversely affected due to the regulatory reforms in the healthcare industry and uncertainty in pharmaceutical pricing among others. |
| Other concerns | The business can be adversely affected due to the failure to obtain, maintain or renew statutory and regulatory licenses, permits, and approvals required.The company is dependent on third-party suppliers and manufacturers and faces severe competition from other large and small players in the industry. |
What is the Grey Market Premium (GMP) of Yatharth Hospital and Trauma Care Services Limited IPO?
As of July 25th, 2023, the grey market premium for the shares of Yatharth Hospital and Trauma Care Services Limited IPO is Rs. 74-76 as per market observers. This means the shares are expected to list at a premium of Rs. 74-76 per share over the listing cap price of Rs. 300.
Should you apply for Yatharth Hospital and Trauma Care Services Limited?
The healthcare industry as a whole is considered to be quite bullish with heavy capital investment from the public and the private sector. The IPO of the company also seems to be fully priced backed by the strong presence in the Delhi NCR region and financial performance. Investors should, however, do careful analysis with respect to factors like the company’s financials, risks, and industry dynamics before making any investment decisions.
How to apply for Yatharth Hospital and Trauma Care Services Limited?
Investors can invest in this IPO through the Fisdom app.
Yatharth Hospital and Trauma Care Services Limited IPO FAQs
The pre IPO shareholding pattern of Yatharth Hospital and Trauma Care Services Limited is 8.66% held by public and 91.34% held by promoters. The post IPO shareholding pattern will be 33.67% held by public and 66.33% held by promoters.
The current strength of doctors with Yatharth Hospital and Trauma Care Services Limited is 370.
Yes. There has been an increase in the GMP of Yatharth Hospital and Trauma Care Services Limited from Rs. 65 to Rs. 75 over the period of 20th July 2023 to 25th July 2023.
The portion or allocation for retail investors is 35% in the Yatharth Hospital and Trauma Care Services Limited IPO.
