Yatarus Hospital IPO Date Yatharth Hospital and Trauma Care Services Limited is a multi-care hospital chain in India. The IPO price is an attractive price.should i invest Yatarsu Hospital IPOThis article provides IPO details, dates, IPO price range, GMP, analysis and Yatharth Hospital IPO review.
Also read: PFC NCD July 2023 – Should You Invest?
Yatarsu Hospital IPO Details
IPO start date | July 26, 2023 |
IPO deadline | July 28, 2023 |
IPO Listing Date | August 7, 23 |
Kind of problem | Book Built Issue IPO |
face value | 10 rupees per share |
IPO price range | Rs 285 to Rs 300 per share |
lot size | 50 shares |
Minimum order quantity | 50 shares |
exhibition place | BSE and NSE |
total issue size | Rs.687 million |
Latest issue | Rs.490 million |
OFS | Rs. 197 million |
Yatarus Hospital IPO reservation
Offer of QIB shares | 50% or more of the offer |
Offer of NII/HNI shares | Not more than 15% of the offer |
retail shares sold | No more than 35% of the offer |
About Yatharth Hospital and Trauma Care Services Ltd
Yatharth Hospital and Trauma Care Services Limited, established in 2008, is a prominent multi-care hospital chain and one of the top 10 largest private hospitals in Delhi NCR.
With three ultra-specialty hospitals in Noida, Greater Noida and Noida Extension, Uttar Pradesh, the company boasts an impressive 450-bed facility at its Noida Extension hub.
In addition, the recent acquisition of a 305-bed multi-specialty hospital in Orchha, Madhya Pradesh has further strengthened its presence in the region.
Supported by a team of 370 skilled physicians, Yatharth Hospital provides comprehensive medical services across different specialties and centers of excellence to ensure patient excellence.
Finances of Yatharth Hospital and Trauma Care Services Ltd
Here is the financial situation of the company.
Fiscal year end/end (amounts in billions) | ||||
detail | 2020 | 21st year | 22nd year | 23rd year |
---|---|---|---|---|
Total assets | 287.2 | 308.8 | 486.0 | 426.0 |
gross income | 146.2 | 229.2 | 523.1 | 402.6 |
Profit after tax | -2.1 | 19.6 | 65.8 | 44.2 |
Profit % | -1.40% | 8.55% | 12.57% | 10.97% |
net worth | 54.3 | 72.5 | 183.0 | 116.9 |
Borrowing amount | 184.6 | 186.1 | 263.8 | 258.2 |
subject of the problem
The IPO size is 687 million rupees. I have both the OFS and the latest issue.
1) Rs. 197 Million Offering (OFS): Under OFS, these are sold by the selling shareholders and the proceeds are paid to the selling shareholders and the company gets nothing.
2) New Issuance of Rs 490 Million:
- Full or partial repayment/advance of certain borrowings we avail.
- Full or partial repayment/advance of certain loans taken by our subsidiaries, namely AKS Medical & Research Center Private Limited and Ramraja Multispeciality Hospital & Trauma Center Private Limited.
- Funds our capital expenditures for two hospitals, Noida Hospital and Greater Noida Hospital.
- It will fund the capital expenditures of each hospital operated by its subsidiaries AKS and Ramraja.
- Fund inorganic growth efforts through acquisitions and other strategic initiatives.
- General corporate purposes.
How would you rate Yatharth Hospital’s IPO price?
IPO price ranges from Rs 285 to Rs 300 per share.
- Considering last year’s 2023 EPS was Rs 10.09, the P/E ratio is 30x.
- Taking into account the weighted EPS of Rs 7.77 over the last 3 years, the PER is 39x.
- Publicly traded peers such as Healthcare Global Enterprise trade at 151 times (highest), while Narayana Hrudaraya sells at 33 times (lowest), an industry average of 66 times.
- Therefore, the 30x to 39x P/E IPO price range is reasonable.
What is the current Yatharth Hospital IPO GMP?
According to market sources, the current gray market premium is between Rs.50 and Rs.60, which is a 20% premium.
What is an IPO Market Lot?
application | lot size | number of shares | amount |
Retail – Minimal | 1 | 50 | 15,000 |
Retail – Max | 13 | 650 | 1,95,000 |
S-HNI minimum | 14 | 700 | 2,10,000 |
B-HNI minimum | 68 | 3350 | 10,05,000 |
What is the expected return on this IPO?
The gray market premium is around 18% to 20%, suggesting Yasas Hospital’s IPO return could similarly reach up to 20%.
Yatharth Hospital IPO Allocation and Listing Date
IPO start date | July 26, 2023 |
IPO closes on | July 28, 2023 |
Basis for allocation | August 2, 2023 |
Initiate refund | 03-August 23rd |
Credit of shares to Demat | 04-August 23rd |
Listing date | August 7, 23 |
UPI Obligation Verification Deadline Time | July 28, 2023 |
Yatarus Hospital and Trauma Care Service Competitiveness
- One of the leading hyper-specialty hospitals in Delhi NCR with a diverse mix of specialties and payers
- Advanced and high-end medical equipment and technology
- Ability to attract the best doctors, nurses, paramedics and other staff
- Experienced, qualified and professional management team with strong execution track record
- Stable management/financial performance and track record of growth
Yatharth Hospital IPO – A positive factor for investment
1) The company is one of the leading super specialty hospitals in Delhi NCR with a diverse mix of specialties and payers.
2) Over the four years, the company’s financials show a positive growth trend. Total assets increased steadily from 287.2 in FY2020 to 426.0 in FY23, while total revenue experienced significant growth, peaking at 523.1 in FY22. Despite being in the red in FY2020, profit after tax improved steadily, reaching 44.2 in FY23.
3) The IPO price is reasonable compared to other companies in the same industry.
Yatharth Hospital IPO – Risks or Downsides
1) We do not receive any proceeds from the sale. Selling shareholders receive net proceeds from the offering.
2) The purchase price, market capitalization earnings multiple based on the selling price, price earnings ratio and EBITDA may not accurately represent the market price of the Company at the time of listing or in the future.
3) As a healthcare provider, the COVID-19 pandemic and stringent restrictions are having a negative impact on our business, operations and financial performance. We may also face professional, reputational, medical and legal issues, including medical malpractice and claims of medical negligence, which could damage our reputation and prospects.
4) high fixed costs can adversely affect profitability; In addition, the unfavorable pricing of medical supplies and the inability to pass on increased costs to payers could further impact profitability.
5) We plan to make capital investments and repay loans, but there is a possibility that the use of funds may be delayed or changed. In addition, a significant portion of the revenues will go to non-operating hospitals that suffered losses in 2023.
6) Challenges related to acquisitions and integration with investments may also adversely affect overall performance.
7) Investors should read all internal and external risk factors from RHP before investing in this IPO.
Also read: 5 mutual funds that generated up to Rs 1.9 crore with 10,000 SIP in the last 20 years
Yatharth Hospital IPO Review – Should You Apply or Not?
Investors should consider all the positive and negative factors before investing in such an IPO.
The company is one of the leading super specialty hospitals in Delhi NCR with a diverse mix of specialties and payers. Over the past four years, the company’s financial situation has shown a positive trend. The IPO price is also reasonable.
On the other hand, the company will not receive any income from OFS as it will be sold to the shareholder. High fixed costs can reduce profitability.
High-risk investors who understand all these risk factors can invest in this IPO with a medium- to long-term perspective.
Frequently Asked Questions about Yatharth Hospital IPO
The IPO will open on July 26, 2023 and close on July 28, 2023.
GMP is trading between Rs.50 and Rs.60 per share.
Considering the upper price range of the stock, the Yatharth Hospital IPO price range of 30x to 39x P/E is considered attractive compared to its peers.
- Centralized Financial Services Private Limited
- Ambit Private Limited
- IIFL Securities Co., Ltd.
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