Yatharth Hospital and Trauma Care Services IPO to open on July 26

Yatharth Hospital and Trauma Care Services will utilise fresh issue proceeds for repaying debts, capital expenditure and inorganic growth initiatives.

Noida-based hospital chain Yatharth Hospital and Trauma Care Services has decided to open its initial public offering for subscription on July 26. The closing date for the offer would be July 28.

The anchor book, which is a part of the qualified institutional buyers' portion, if any will open on July 25, a day before the issue opening.

The maiden public offer comprises a fresh issuance of shares worth Rs 490 crore, and an offer for sale of 65.51 lakh equity shares by promoters Vimla Tyagi, Prem Narayan Tyagi, and Neena Tyagi.

The company has already raised Rs 120 crore via private placement (pre-IPO placement) of 40 lakh equity shares at a price of Rs 300 per share. Hence, accordingly, the fresh issue size has been reduced to Rs 490 crore, from Rs 610 crore earlier.

The price band for the offer is yet to be announced. But if we consider the above issue price at Rs 300 per share, the fundraising via public issue (fresh issue + offer for sale) can be Rs 686.55 crore.

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Half of the offer size has been reserved for qualified institutional buyers, 15 percent for high networth individuals, and the remaining 35 percent for retail investors.

Yatharth Hospital operates three super speciality hospitals in Delhi NCR. Further, it acquired a 305-bedded multi-speciality hospital at Orchha in Madhya Pradesh in April 2022. With this acquisition, its total bed capacity has increased to 1,405 beds.

As of March 2023, the hospital chain has engaged 609 doctors.

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The company will utilise fresh issue proceeds for repaying debts, capital expenditure, inorganic growth initiatives, and general corporate purposes.

Intensive Fiscal Services, Ambit, and IIFL Securities are the merchant bankers to the issue.

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