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Yatharth Hospitals makes a tepid D-street debut listing at 1.3% premium

Yatharth Hospitals makes a tepid D-street debut listing at 1.3% premium
Stock Market2 min read
  • The stock of Yatharth Hospitals listed at a premium of 1.3%, much below the grey market expectations.
  • The public issue of Yatharth Hospital & Trauma Care Services was subscribed by 36 times the shares on offer.
  • The net proceeds will be utilised towards loan payments, capex, growth initiatives and general corporate purposes.
Noida-based Yatharth Hospitals listed at ₹304 on the exchanges today, at a premium of 1.3%. The grey market had been hoping for a 20% premium above its IPO price of ₹300.

The market cap of the company is at ₹2,609 crore as per data on BSE.

The public issue was subscribed by 36 times the shares on offer. The retail portion of the issue was subscribed by 8.34 times, and non-institutional investors subscribed by 37.22 times. Qualified Institutional Buyers (QIBs) however bid aggressively on the third day of the issue, and this portion was subscribed 85 times.

The public issue consists of fresh issue aggregating up to ₹490 crore and offer for sale of equity shares aggregating up to ₹197 crore.


Category

No of times subscribed

QIBs

85.1

Non institutional investors

37.22

Retail

8.34

Total

36.15

Source: BSE

The company has fixed the price band for its equity shares at ₹285-300 per share. The net proceeds from the fresh issue will be utilised to repay or prepay borrowings, fund capex, towards funding inorganic growth initiatives through acquisitions and other strategic endeavours; and for general corporate purposes.

Yatharth Hospital and Trauma Care Services is a multi-care hospital chain which was incorporated in 2008. It operates through its super specialty hospitals situated in Delhi NCR - Noida, Greater Noida, and Noida Extension, Uttar Pradesh.

Its Noida Extension hospital has 450 beds and is one of the largest hospitals in the area. Further, they acquired a 305-bedded multi-specialty hospital in Orchha, Madhya Pradesh near Jhansi, which commenced operations in April 2022. Its total bed capacity is at 1405.

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