After Tepid Listing, Yatharth Hospital Stock Price Ends 11% Up From IPO Price

Yatharth Hospital & Trauma Care Services made a tepid listing on Monday, however, the stock gained traction to end with an upside of more than 10% to 11% on both exchanges BSE and NSE. Yatharth IPO had oversubscribed with strong demand across the investors category.

Listing on BSE:

On BSE, the company's stock ended at Rs 333.75 apiece, up by Rs 33.75 or 11.25% against the IPO issue price of Rs 300 apiece. The stock listed on the exchange at Rs 304 apiece, which was merely 1.33% up from the IPO price.

Compared to the listing price, the stock has gained by 9.79% on BSE.

The stock's 52-week high and low is at Rs 342.70 apiece and Rs 304 apiece respectively.

Yatharth equity shares are listed and admitted to dealings on BSE in the list of 'B' Group Securities.

Listing on NSE:

Here, the stock is listed at Rs 306.10 apiece, up by 2.03%. However, the stock ended at Rs 331.30 apiece, higher by Rs 25.20 or 8.23% from the listing price. But, the upside is over 10.4% against the IPO issue price.

The 52-week high and low of the stock are at Rs 343.10 apiece and Rs 306.10 apiece on NSE.

Yatharth's IPO was launched from July 26 to July 28, at a fixed price band of Rs Rs 285 to Rs 300 apiece. The IPO oversubscribed by 36.16 times driven by institutional investors. Further, the portion reserved for QIBs oversubscribed by 85.10 times, while high net worth clients aka NIIs oversubscribed as well by 37.22 times. Meanwhile, the retail portion subscribed by 8.34 times. Overall, the company planned to raise a whopping Rs 686.55 crore via the public offer.

Yatharth first commenced its operations in 2008 with a clinic in Noida, Uttar Pradesh and thereafter established its first hospital in Greater Noida in November 2010. This hospital has since grown to become a superspecialty tertiary care hospital with 400 beds, including 112 critical care beds, and nine modular and other operation theatres, as of January 31, 2022.

Yatharth is among the top 10 largest private hospitals in the National Capital Region of Delhi ("Delhi NCR") in terms of number of beds in Fiscal 2021. The company operates three super specialty hospitals in Delhi NCR, i.e., at Noida, Greater Noida and Noida Extension, Uttar Pradesh. Its total bed capacity increased to 1,405, while its critical care program comprises 318 critical care beds, as of January 31, 2022.

In its IPO note, Reliance Securities on Yatharth said, "India's current healthcare expenditure is largely dominated by private expenditure. North India regions including Haryana, Uttar Pradesh and Uttarakhand have lower than average doctor and nurse density per 10,000 population. This is expected to improve going ahead while favouring the company's expansion plans. Their recent acquisition of the Jhansi-Orchha hospital is aimed at further expanding into new geographies and growing their presence in the regional healthcare market. They intend to focus on building capabilities for new, more advanced specialties which have high demand in the respective micro markets and deliver a higher ARPOB."

Hence, Yatharth is seen to have strong financials, growth potential in Northern India, debt free and patient-friendly facilities.