Yatharth Hospital IPO opens tomorrow: 10 things to know before you buy it

Yatharth Hospital and Trauma Care Services, which has its headquarters in Noida, is getting ready to conduct its first-ever initial public offering. Beginning on July 26, investors will be able to subscribe to the initial public offering (IPO). The following are some things that an investor ought to be aware of.

1) IPO Dates

The bidding for the initial public offering will start on July 26 and the last day to apply for IPO would be July 28.

2) Price Band

The company has fixed a price band of Rs 285-300 per share for its initial public offering.3) IPO Size

3) IPO Size

The total amount raised through the public issue would be between Rs 676.7 crore (at the lower price range) and Rs 686.55 crore (at the higher price band). The transaction includes a new issuance of shares of Rs 490 crore and an OFS of 65.51 lakh equity shares by promoters Vimla Tyagi, Prem Narayan Tyagi, and Neena Tyagi.

Since the business raised Rs 120 crore through private placement (pre-IPO placement) of 40 lakh shares at a price of Rs 300 per share on July 6, before submitting the red herring prospectus with the Registrar of Companies, the actual fresh issue size was reduced to Rs 490 crore, from Rs 610 crore.

4) Objectives Of Issue

Yatharth Hospital plans to use the proceeds from the new issuance for general corporate reasons, including the payment of debts, the purchase of hospital equipment, and the funding of inorganic expansion projects.

5) Lot Size

Investors can place bids starting at 50 equity shares and increasing in 50-share increments. A minimum of Rs 15,000 (50 shares x Rs 300) and a maximum of Rs 1.95 lakh (13 lots) can be invested by retail investors.

6) Company Profile

The Yatharth Hospital & Trauma Care Services Limited has three super speciality hospitals in the Delhi NCR area, in the Uttar Pradesh cities of Noida, Greater Noida, and Noida Extension. In addition, it has purchased a 305-bed multi-specialty hospital in Orchha, Madhya Pradesh, not far from Jhansi, Uttar Pradesh. This facility, which opened for business on April 10, 2022, is one of the largest in the Jhansi-Orchha-Gwalior area. With this purchase, it can now accommodate 1,405 patients at a time.

At the end of March 2023, its critical care programme will have 394 beds available. What's more, its hospital in Noida Extension, Uttar Pradesh, is one of the largest in the area, with 450 beds. As of the end of the fiscal year (2023-31) it offers a wide range of medical services, including the expertise of 609 doctors.

7) Financials

Over the previous three fiscal years, Yatharth has maintained solid operating and financial performance and growth. From Rs 67.01 crore in FY 2021 to Rs 133.76 m in FY 2023, that is a CAGR of 41.29 % for EBITDA. In fiscal 2021, it earned Rs 19.58 c.; by fiscal 2022, it earned Rs 44.16 c.; and by fiscal 2023, it earned Rs 65.76 c.

As of March 31st, 2021, its net worth was Rs 72.45 crore. As of March 31st, 2023, it was Rs 182.96 crore. In fiscal year 2023, Yatharth's operating margin was 25.71%. Its occupancy rate climbed from 41.63 percent in Fiscal 2021 to 49.97 percent in Fiscal 2022, and its number of operational beds increased from 864 in Fiscal 2021 to 1,405 in Fiscal 2023 at a CAGR of 27.52 percent. The Jhansi-Orchha hospital began its commercial operations in Fiscal 2023, and by that year, 45.33 percent of its beds were occupied.

8) Promoters and Management

The hospital's backers are all medical professionals. In addition, its board members come from a wide range of professional backgrounds, including the hospitality industry, medical, banking, economics, and management. Yatharth Tyagi, the company's current executive director, has worked in the business world on a global scale. He graduated from Leeds Beckett University with a bachelor's degree in business and management and from Imperial College London with a master's degree in International Health Management.

Mukesh Sharma is a former banker, Ila Patnaik is a senior economist, and Dr. Sanjeev Upadhyay is a doctor who works with the United National Children's Fund as a health and nutrition specialist. New members of the Board are Upadhyay, Sharma, and Patnaik.

Amit Kumar Singh, the company's CEO, has worked in top management for the healthcare industry for 16 years. Our company is led by chartered accountant Pankaj Prabhakar as CFO and by company secretary and Compliance Officer Ritesh Mishra.

9) Risks and Concerns

According to brokerages, below are some of the key risk factors:

-Yatharth's commercial and financial success will be adversely damaged if the company is unable to attract, retain, or train qualified medical personnel.

-The success of the business is directly tied to the quality of its name and image. The Company's business, financial condition, results of operations, and prospects could be materially adversely affected if the Company fails to maintain and enhance the Brands and Reputations, or if there is any negative publicity or allegations in the Media regarding this.

-If a corporation is unable to raise its hospital occupancy rates, it may not be able to recoup its investment costs, which might have a devastating impact on the company's capacity to make a profit.

Also Read :Five IPOs will join the market this week, with three stocks debuting.

10) Allotment and Listing Dates.

By August 2, the IPO share allotment basis will be finalised, and by August 4, eligible investors' demat accounts will be credited with equity shares. By August 3, investors who did not succeed will have received their money back in their bank accounts.

According to the IPO timetable, Yatharth Hospital equity shares will begin trading on August 7.