Yatharth Hospital & Trauma Care Services will launch its initial public offering on July 26. The IPO includes a fresh issue of Rs 490 crore and an offer-for-sale of 65.51 lakh shares.
Issue Details
Issue opens: July 26.
Issue closes: July 28.
Listing date: on or around Aug. 7.
Total issue size: Rs 686.55 crore.
Total shares: 2,28,85,023 shares.
Face value: Rs 10 per share.
Fresh issue: Rs 490 crore.
Shares for fresh issue: 1,63,33,333 shares.
Offer for sale: Rs 196.55 crore.
Shares for offer-for-sale: 65,51,690 shares.
Price band: Rs 285-300 per share.
Lot size: 50 shares.
Lisiting: BSE and NSE.
Business
Yatharth Hospital & Trauma Care Services operates three super specialty hospitals located in Delhi NCR. With the company's acquisition of a 305-bed multi-speciality hospital in Orchha, Madhya Pradesh, their total bed capacity stands at 1,405 beds. As of March 31, the company had engaged 609 doctors and offered healthcare services across several specialties and superspecialties.
Use of Proceeds
Repayment or prepayment of borrowings availed by the company: Rs 100 crore.
Repayment or prepayment of borrowings by the subsidiaries, namely, AKS and Ramraja: Rs 145 crore.
Funding capital expenditure expenses of the company for two hospitals: Rs 25.64 crore.
Funding capital expenditure expenses of the subsidiaries, AKS and Ramraja: Rs 106.96 crore.
Funding inorganic growth through acquisitions and other strategic initiatives: Rs 65 crore.
General corporate purposes.
Risk Factors
The business is subject to various operational, reputational, medical, and legal claims, regulatory actions, or other liabilities arising from the provision of healthcare services.
May be subject to liabilities arising from claims of malpractice and medical negligence.
The company has high fixed costs that can impact its profitability.
If the company fails to achieve favourable pricing on medical consumables, pharmacy items, drugs, and surgical instruments from its suppliers or is unable to pass on any cost increases to its payers, its profitability could be materially and adversely affected.
A significant portion of the net proceeds from the fresh issue is earmarked for Jhansi-Orchha Hospital, which was non-operational from FY20 to FY22 and incurred losses in FY23.
The company may not be able to successfully integrate its acquisitions or investments.
Failure to obtain or renew approvals, licences, registrations, and permits to operate the business in a timely manner, or not at all.
Price restrictions by the Government in certain instances, such as during Covid-19, could adversely affect the business.
The subsidiaries of the company have incurred net losses in the past and may not be able to achieve or maintain profitability in the future.
The business is highly dependent on doctors, nurses, and other healthcare professionals, and the business and financial performance will be significantly impacted if the company is unable to attract, retain, or train such professionals.
Watch | IPO Adda with Yatharth Hospital's Yatharth Tyagi
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