Yatharth Hospital sets IPO price band at Rs 285-300 per share, to raise Rs 687 crore

Yatharth medical and Trauma Care Services, a medical chain situated in Noida, has set its IPO pricing range at 285-300 rupees per share.

Public issue would raise a total of Rs 676.7 bn at the lower price range and Rs 686.55 bn at the higher price band. The promoters, Vimla Tyagi, Prem Narayan Tyagi, and Neena Tyagi, are selling off 65.51 million of their own shares in addition to issuing a new 490 million of their own shares.

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

Beginning on July 26, investors will be able to subscribe to the offering through July 28. The company's anchor book (a component of QIB) will open on July 25, a day before the issue opens, if there is one.

The operator of the hospital chain has set aside a total of 50% of the issue size for qualified institutional buyers (QIB), 15% for high-net-worth individuals (HNI), and the remaining 35% for retail investors.

An investor must place a bid for a minimum of 50 equity shares, with additional bids in increments of 50 shares. Retail investors can invest as little as Rs 15,000 per lot (50 shares x Rs 300) and as much as Rs 1.95 lakh per investor (13 lots).

In addition to general business reasons, Yatharth Hospital will use the proceeds from the new issue to pay down debt, make hospital-related capital expenditures, and finance inorganic expansion plans.

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The company now runs four hospitals, three of which are super-specialty hospitals in the Delhi-National Capital Region and one of which is a multi-specialty hospital in Madhya Pradesh, with a combined 1,405 beds.

Intense Financial Services, Ambit, and IIFL Securities are the underwriters for the offering.