Yatharth Hospital IPO: Know Price Band, Listing Dates And More
Introduction:
In July, the primary markets experienced notable listings. Both mainboard and SME Initial Public Offerings (IPOs) resulted in substantial gains for investors. Utkarsh Small Finance Bank and IdeaForge Technologies Limited IPOs stood out, achieving more than 92% listing gains.
As we approach the final week of July, the excitement in the market shows no signs of abating. The upcoming IPO set to launch is Yatharth Hospital and Trauma Care Services. Read on to explore the details of this IPO and assess whether it's a worthy investment opportunity.
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About Yatharth Hospital:
Incorporated in 2008, Yatharth Hospital and Trauma Care Services Limited is a super-speciality private hospital chain based in Delhi National Capital Region (NCR). It manages three hospitals in Noida, Greater Noida, and Noida Extension. The Noida branch is the eighth largest private hospital in Delhi NCR regarding the number of beds in Fiscal 2023.
The company recently acquired a multi-speciality hospital with 305 beds in Orchha, near Jhansi, in Madhya Pradesh. After this acquisition, the total number of beds under Yatharth Hospital has increased to an impressive 1,405. As of 31 March 2023, 609 doctors worked under this super-speciality hospital chain. The company also has tie-ups with several third-party insurance players and government organisations.
Key Strengths of Yatharth Hospital:
- Yatharth Hospital is among the top ten super-speciality hospitals in Delhi NCR
- It offers a diverse range of healthcare services across specialties and payer mix
- All hospitals are equipped with advanced healthcare equipment and high-end technology
- They have a track record of stable financial performance and growth over the last three fiscals
- Possess abilities to attract quality doctors, nurses, and other medical staff
- Boasts an experienced management team with a strong track record
Key risks or weaknesses:
- Currently, the operations are mainly confined to the Delhi NCR region
- The company may take time to expand its operations to other parts of India
- Operates in a highly capital-intensive and competitive industry
- Relies heavily on its banking and NBFC partners to raise business financing
- Business terms are tightly regulated by the government
Financial Highlights of Yatharth Hospital:
The table below reflects the key financials of Yatharth Hospital for the last three financial years as mentioned in the Draft Red Herring Prospectus (DRHP) filed with the market regulator:
| Particulars | As of and For FY Ending March 31 | ||
| 2023 | 2022 | 2021 | |
| Share Capital | 66 | 66 | 16 |
| Net Worth | 183 | 117 | 72 |
| Total Borrowings | 264 | 258 | 186 |
| Revenue From Operations | 520 | 401 | 229 |
| EBITDA Adjusted | 134 | 111 | 67 |
| Profit After Tax | 66 | 44 | 20 |
| Earnings Per Share (Diluted) | 10 | 7 | 3 |
| Net Asset Value (In Rs/share) | 28 | 18 | 11 |
| Return on Capital Employed | 26% | 23% | 18% |
| Return on Equity | 36% | 38% | 25% |
*Amount in Crores
The following points can be sourced from the table mentioned above:
- The company’s net worth has grown considerably from Rs. 72 crores to Rs. 183 crores between the financial years 2020-21 and 2022-23
- Subsequently, the revenues generated by the company have also expanded from Rs. 229 crores to Rs. 520 crores
- The profits of the company have more than tripled from Rs. 20 crores to Rs. 66 crores, indicating a constant growth
- While revenues and profits have increased considerably, the total borrowings of the company remained firm
- With the company planning to expand its operations to Pan-India, the revenues look poised for further growth in the future
Details of the IPO
| IPO Details | |
| IPO Date | Jul 26, 2023 to Jul 28, 2023 |
| Face Value | Rs 10 per share |
| Price | Rs 285 to Rs 300 per share |
| Lot Size | 50 Shares |
| Fresh issue | Up to Rs 490.00 Cr |
| Offer for Sale | 6,551,690 shares of Rs 10 |
| IPO Reservation | |
| Qualified Institutional Buyer (QIB) | Up to 50% of the Net Issue |
| NII (HNI) | At least 15% of the Net Issue |
| Retail Investors | At least 35% of the Net Issue |
The objects of the offer include:
- Repayment of certain borrowings
- Funding capital expenditure
- Funding inorganic growth initiatives
- General corporate purposes
Yatharth Hospital’s shares are likely to be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) on 7 August 2023.
Here’s what you should know before investing in Yatharth Hospital IPO.
The financials of the company paint a positive picture. Given the growth in revenues and profits in the last three financial years, it’s not a bad idea to subscribe for the IPO. However, you should note the company's aggressive valuation and ability to expand pan-India before investing your hard-earned money. If you need a Demat account to invest in this IPO, you can open it for free with Motilal Oswal.
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