Yatharth Hospital Share Price Rises After Board Approves QIP

Yatharth Hospital & Trauma Care Services Ltd.'s share price rose over 3% after the company approved raising funds via qualified institutional placement. Equity shares of face value of Rs 10 will be issued in the QIP.

A special resolution was passed by the members of the company in an extraordinary general meeting held on Dec. 6. The Securities Issue Committee at its meeting had authorised the opening of the issue on Wednesday.

The board also approved the floor price of Rs 626.18 per equity share for the issue. The company will offer a discount of up to 5% on the floor price.

The objective of the QIP is the repayment or pre-payment, in full or in part, of certain outstanding borrowings of the company and subsidiaries.

According to the term sheet viewed by NDTV Profit, the company is set to issue Rs 700 crore. Some of the subsidiaries of the company include AKS Medical & Research Centre Pvt. and Pristine Infracon.

The QIP will also account for acquisition funding for two hospitals situated in Model Town, Delhi and Faridabad, Haryana. The purpose of the QIP will also account for purchase of medical equipment and general corporate purposes.

Yatharth Hospital Share Price

Yatharth Hospital's share price rose as much as 3.34% during the day to Rs 634.50 apiece on the NSE. It was trading 2.30% higher at Rs 638.15 apiece, compared to a 1.02% decline in the benchmark Nifty 50 as of 10:29 a.m.

The stock has risen 58.32% in the last 12 months and 62.62% on a year-to-date basis. Total traded volume so far in the day stood at 4.7 times its 30-day average. The relative strength index was at 48.44.

All six analysts tracking the company have a 'buy' rating on the stock, according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 795, implying an upside of 28.5%