Yatharth Hospital IPO subscription will close on July 28. The price range is set at 285 to 300 per share. The company plans to use the money to pay off debt and fund growth. So far, 3,03 times as many people as planned have signed up for the IPO. Brokerages are telling buyers to subscribe to the issue.
The initial public offering (IPO) for Yatharth Hospital and Trauma Care Services Ltd started on July 26 and will end on July 28. For the planned initial public offering, the Yatharth Hospital IPO price has been set between 285 and 300 per equity share.
Yatharth Hospital IPO raised ₹205.96 crores from 18 anchor investors at the upper price band of ₹300 per equity share on Tuesday, July 25.
Anchor investors include Goldman Sachs (Singapore), SBI Life Insurance Company, Kotak Mahindra Life Insurance Company, ICICI Prudential Mutual Fund, Max Life Insurance Company, HDFC Mutual Fund, and BNP Paribas Arbitrage.
Yatharth Hospital’s initial public offering (IPO) includes a new round of shares worth 490 crore and an offer by Vimla, Prem Narayan, and Neena Tyagi to sell 65.51 lakh stock shares.
Yatharth Hospital plans to use the rest of the money to pay off or move forward on debt. Pay for the company’s Noida Hospital and Greater Noida Hospital, as well as the hospitals run by AKS and Ramraja, which are companies of the company. Also, fund non-organic growth through acquisitions and other general business goals.
Qualified Institutional Buyers (QIB) can only buy up to 50% of the shares in the Yatharth Hospital IPO. Non Institutional Investors (NII) can only buy up to 15% of the shares, and Retail Investors can only buy up to 35% of the shares.
Each piece of stock has a face value of 10. The floor price is 28.5 times the face value of the stock shares, and the cap price is 30 times the face value. At the floor price, the company’s price to profits ratio is 28.25, and at the cap price, it is 29.73. Bids can be made for at least 50 equity shares and then in increments of 50 equity shares.
For the quarter that finished in March, Yatharth Hospital made 65.77 crore after taxes, and it made 523.10 crore in Q4FY23.
Yatharth Hospital IPO GMP today: topsharebrokers.com says that the grey market price (GMP) for Yatharth Hospital IPO today is 53. This means that the price of Yatharth Hospital shares on the dark market on Friday was 53 gold pieces more than they were worth.
On Thursday, the price of Yatharth Hospital shares ended at a premium of 53 on the grey market. Earlier in the day, they were trading at a premium of 50.
Taking into account the upper end of the IPO price range and the current premium on the grey market, the expected listing price of a Yatharth Hospital share is 355, which is 18.33% more than the IPO price of 300.
The Yatharth Hospital IPO is set to be listed on the bourses on Monday, August 7.
The public deal is being kept track of by Link Intime India Private Ltd. Intensive Fiscal Services Private Ltd, Ambit Private Ltd, and IIFL Securities Ltd are the three book-running lead managers for the deal.A
On day 2, individual investors and non-institutional investors (NIIS) drove the Yatharth Hospital Subscription Status. The Yatharth Hospital IPO was bought 3.03 times over.
Yatharth Hospital IPO Should I Buy? – Here’s what brokerages say
The agency says that Yatharth Hospital is one of the largest hospitals in the Noida area. During FY21–FY23, the number of filled beds and ARPOB grew by 13%, 12%, and 51%, respectively, on a compound annual growth rate (CAGR) basis. During that time period, EBITDA grew at a compound annual growth rate (CAGR) of 41%. India spends most of its money on health care right now through private spending.
In the northern Indian states of Haryana and Uttar Pradesh, there are fewer than average doctors and nurses for every 10,000 people. This is expected to get better over time, which will help the company’s plans to grow. Yatharth Hospital recently bought Jhansi-Orchha in order to grow into new areas and strengthen its place in the local healthcare market.
“Company wants to focus on more advanced specialties that are in high demand in their own areas and bring in a higher ARPOB. With high ROE and ROCE of 36% and 24.4%, respectively, we think that Yatharth Hospital is being sold at a fair price of 20.9x FY23 EV/EBITDA compared to its peers. With healthy finances and growth opportunities in Northern India, we suggest ‘Subscribe’ to the issue,” the brokerage said.
Canara Bank Securities
According to the brokerage’s research, in order to build a good image, hospitals must offer prices that are 20% less than those of their competitors. They want to grow in areas close to Delhi and some parts of Uttar Pradesh. They have said that their finances have been good in every way. Over a two-year time, the compound annual growth rates (CAGR) for revenue and profit after taxes are 51% and 83%, respectively.
“This issue is for sale at a price-to-earnings ratio of 29.73x, which is lower than its peers. This is not a fair comparison because this hospital is mostly in Delhi and is becoming known as a multispecialty hospital among its well-known peers. They have just started offering kidney transplants, bone marrow transplants, and a school of oncology. In the medium to long run, these specialty services will add costs to the hospital, which could put pressure on margins. 34% of their income comes from deals with the government, which can extend the debtor days and cushion as well. So, we suggest that you buy the issue so that you can get Listing gains,” the brokerage said.
The issue seems to be fairly priced at the upper price band of 300, with a P/E of 35. This is compared to peers like Healthcare Global Enterprises, which is trading at a P/E of 151x, and Narayana Hrudalaya, which is trading at a P/E of 33x. The average P/E for the industry is 66x. From FY21 to FY23, the company’s debt-to-equity ratio went from 2.57 to 1.44, which is a good sign. However, it is still higher than 1, which is a worry.
The business is in a very competitive market. Their high set costs could hurt their ability to make money. Also, bad prices on medical goods or not being able to pass on cost increases to payers could hurt their ability to make money. “Investors with cash to spare can buy the issue, as long as they think about the company’s pros and cons,” the firm said in its report.