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02 August 2023

Yatharth Hospital and Trauma Care Services Limited

Introduction:

Yatharth Hospital and Trauma Care Services Limited, established in 2008, is a multi-care hospital chain operating through its super specialty hospitals in the Delhi NCR region. With locations in Noida, Greater Noida, and Noida Extension, Uttar Pradesh, the hospital chain is well-positioned to provide quality healthcare services to a wide range of patients. One of its hospitals in Noida Extension boasts 450 beds and stands as one of the largest hospitals in the area. All Yatharth hospitals hold accreditations from NABH, while those in Greater Noida and Noida Extension have earned NABL accreditation, signifying adherence to international quality standards.

Services and Specialties:

Yatharth Hospital and Trauma Care Services offer patients various amenities and facilities to ensure their safety and recovery. The hospital chain maintains a team of 370 skilled doctors covering numerous specialties and super specialties. Its centers of excellence (COE) or super specialties include Medicine, General Surgery, Gastroenterology, Cardiology, Nephrology & Urology, Pulmonology, Neurosciences, Pediatrics, Gynecology, Orthopedics, and Spine & Rheumatology.

Yatharth Hospital IPO Details:

The Yatharth Hospital IPO is a Book Built Issue with a total issue size of Rs 686.55 Crores. The IPO price ranges from ₹285 to ₹300 per share, and the company plans to list on both BSE and NSE. The IPO is open for subscription from Jul 26, 2023, to Jul 28, 2023.

IPO Details at a Glance:

IPO Open Date	Jul 26, 2023
IPO Close Date	Jul 28, 2023
Face Value	₹10 per share
Price	₹285 to ₹300 per share
Lot Size	50 Shares
Total Issue Size	22,885,023 shares (aggregating up to ₹686.55 Cr)
Fresh Issue	16,333,333 shares (aggregating up to ₹490.00 Cr)
Offer for Sale	6,551,690 shares of ₹10 (aggregating up to ₹196.55 Cr)
Issue Type	Book Built Issue IPO
Listing At	BSE, NSE

Promoter Holding:

The promoters of Yatharth Hospital and Trauma Care Services Limited are Ajay Kumar Tyagi and Kapil Kumar. The pre-issue shareholding is 91.34%, which will be reduced to 66.32% post the IPO.

Financial Performance:

Financial Information (Restated Consolidated)

Period Ended	31-Mar-2019 to 31-Mar-2023
Assets	₹256.56 Cr to ₹485.97 Cr
Revenue	₹102.07 Cr to ₹523.10 Cr
Profit After Tax	₹3.98 Cr to ₹65.77 Cr
Net Worth	₹55.60 Cr to ₹182.96 Cr
Total Borrowing	₹164.57 Cr to ₹263.78 Cr

Key Performance Indicators:

P/E (x)	39.16
Market Cap (₹ Cr.)	₹2575.51
ROE	35.95%
ROCE	26.10%
Debt/Equity	1.44
EPS (Rs)	10.09
RoNW	35.95%

Use of Proceeds:

The net proceeds from the Fresh Issue will be used for the following purposes:

1. Repayment/prepayment of certain borrowings availed by the company and its subsidiaries.
2. Funding capital expenditure for two hospitals, Noida Hospital, and Greater Noida Hospital.
3. Funding capital expenditure for hospitals operated by its subsidiaries, AKS Medical & Research Centre Private Limited and Ramraja Multispeciality Hospital & Trauma Centre Private Limited.
4. Inorganic growth initiatives through acquisitions and other strategic initiatives.
5. General corporate purposes.

Yatharth Hospital IPO Review:

[Dilip Davda] The company operates a chain of four hospitals with a capacity of 1405 beds in the northern region and stands as one of the leading healthcare service providers. Based on its current financial status, the issue appears fully priced, but its bright prospects make it an attractive long-term investment option.

IPO Subscription Status (as of Jul 28, 2023):

The Yatharth Hospital IPO is subscribed 37.28 times, with the retail category oversubscribed 8.66 times, the QIB category 86.37 times, and the NII category 38.62 times.

Conclusion:

Yatharth Hospital and Trauma Care Services Limited, a prominent multi-care hospital chain, is set to expand its operations through its IPO. With a robust financial performance and a strong team of skilled doctors, the company is well-positioned for future growth. Investors may consider participating in the IPO for medium to long-term rewards.