Yatharth Hospital and Trauma Care Services Ltd has filed draft papers with the Securities Exchange Board of India (SEBI) to raise funds via an initial public offering (IPO).
The IPO comprises a fresh issue of Rs 610 crore and an offer for sale (OFS) of up to 6.55 million shares by current shareholders and promoters.
The OFS consists of up to 3.74 million shares by Vimla Tyagi, up to 2.02 million shares by Prem Narayan Tyagi and up to 787,000 shares by Neena Tyagi.
The proceeds from the issue will be used to repay debt of the company and its arm AKS Medical and Research Centre and Ramraja worth Rs 250 crore, As on February 28, 2022, total borrowings of the Yatharth Hospital and its arm stood at Rs 103.35 crore and Rs 152.51 crore, respectively.
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The firm will also use Rs 137 crore for funding capital expenditure. Yatharth operates three fully functional super-speciality hospitals in Noida, Greater Noida and Noida Extension, all in Uttar Pradesh. It also recently acquired a hospital in Orchha, Madhya Pradesh.
AKS and Ramraja operate the facility in Noida Extension and the Jhansi-Orchha Hospital, respectively. The hospital in Noida Extension is a 450-bedded tertiary care hospital with 11 modular and other operation theatres and 125 critical care beds. Jhansi-Orchha Hospital is a super-speciality hospital with a total capacity of 305 beds.
The hospital in Noida is a 250-bed super-specialty tertiary care hospital. It has a mix of four high-end modular and non-modular operation theatres, emergency resuscitation and observation unit, 81 critical care beds, a dedicated endoscopy unit and an advanced dialysis unit. The Greater Noida unit is a leading super-speciality tertiary care hospital that had, as on January 31, 400 beds including 112 critical care beds, and nine modular and other operation theatres.
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The firm will use Rs 65 crore for funding inorganic growth via acquisitions and other strategic initiatives. “We intend to diversify the scope of our offerings to customers and enter into new markets, which so far has not been tapped by the us and/or the existing market, where we already have presence and wish to consolidate such presence by acquiring new hospitals by way of inorganic growth by way of acquiring the already operational/non-operational hospitals,” the firm said in its draft red herring prospectus.
Intensive Fiscal Services Pvt Ltd, Ambi Pvt Ltd and IIFL Securities are the lead managers to the issue.
For FY21 the firm reported revenue from operations of Rs 228.67 crore against Rs 146.04 crore a year earlier. Net profit for the period stood at Rs 19.59 crore versus a loss of Rs 2.05 crore in the previous year.