The Yatharth Hospital IPO has commenced, featuring not only new shares but also promoters’ shares under the Offer for Sale (OFS) window. The grey market premium stands at Rs 55 (18.33%), but market experts caution against using this as the sole basis for investment decisions. The IPO offers crucial details to assist potential investors in making informed choices.
New Shares and Promoters’ Shares Offered, Grey Market Premium at Rs 55 (18.33%)
The IPO entails issuing new shares worth Rs 490 crore and selling 65.51 lakh shares through OFS, with a price band of Rs 285-300 and a lot size of 50 shares. The subscription window remains open until July 28, with the allotment of shares set for August 2. The funds raised will be allocated towards debt repayment, hospital capital expenditure, inorganic growth initiatives, and general corporate purposes.
Yatharth Hospital operates three super specialty hospitals in the Delhi NCR region, along with a 305-bed multi-specialty hospital in Orchha, Madhya Pradesh. Its capacity has expanded to 1,405 beds post-acquisition. As of March 31, 2023, the hospital has a roster of 609 doctors.
Key Timelines for Yatharth Hospital IPO
Financially, Yatharth Hospital’s EBITDA is projected to grow at a CAGR of 41.29% from FY2021 to FY2023. The net profit has also seen an upward trend, reaching Rs 65.76 crore in FY2023. Despite positive prospects, experts highlight certain risks, such as heavy reliance on healthcare professionals, the importance of brand and trust maintenance, and the need to increase hospital occupancy rates to ensure profitable returns.
