The acquisition will strengthen the company's presence in Delhi-NCR, the hospital player said.
The company's board has approved to enter into an agreement with MGS Infotech Research and Solutions Pvt Ltd and its shareholders to acquire 60 per cent stake, the healthcare provider said in a regulatory filing.
Yatharth Hospitals said the order has come as a total surprise and they had no prior intimation or communication regarding the same.
The Rs 687-crore public issue had seen a healthy response from investors, subscribing 36.16 times during July 26-28. This led analysts and investors to believe that there would be another strong listing on bourses.
Yatharth Hospital IPO | The offer comprises a fresh issue of Rs 490 crore by the company and an offer for sale of 65.51 lakh equity shares by promoters Vimla Tyagi, Prem Narayan Tyagi and Neena Tyagi.
Yatharth Hospital said it will utilise fresh issue proceeds for repaying debts, capital expenditure for hospitals, and funding inorganic growth initiatives, besides general corporate purposes.
The bulk of the business comes from the NCR region, which is a crowded market for hospitals. Hence, investors looking for long-term gains should wait
Yatharth Hospital: Marquee investors participated in the anchor book included ICICI Prudential, Nippon Life, HDFC Mutual Fund, Aditya Birla Sun Life Trustee, Bandhan Mutual Fund, and HSBC Global Investment Funds.
Yatharth Hospital IPO: The company has fixed a price band at Rs 285-300 per share for its initial public offering. The basis of the allotment of IPO shares will be finalised by August 2 and the equity shares will be credited to the demat accounts of eligible investors by August 4.
The total fund raising via public offerings would be Rs 857 crore, including Rs 170 crore by the SME (small and medium enterprise) segment
Yatharth Hospital will utilise fresh issue proceeds for repaying debts, capital expenditure for hospitals, and funding inorganic growth initiatives, besides general corporate purposes
The price band for the offer is yet to be announced. But if we consider the issue price at Rs 300 per share, the fund raising via public issue can be Rs 686.55 crore.
The share sale comprises a fresh issue of Rs 610 crore and an offer for sale of up to 6.55 million shares by existing shareholders and promoters