Yatharth Hospital IPO Closed, Subscribed by 36.16 Times on Day 3; What GMP Suggests For Listing?

Yatharth Hospital and Trauma Care Services IPO: The public offer oversubscribed by 36.16 times on the last day of the subscription on July 28 driven by strong buying from qualified institutional buyers (QIBs) and non-institutional investors (NII). The retail investors' portion fully subscribed as well. The equity shares proposed in the IPO will be listed on stock exchanges BSE and NSE.

As per the data on exchanges, the IPO received bids of 59,72,19,800 shares against the offered size of 1,65,17,823 equity shares, registering a subscription of 36.16 times.

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.

Of the total IPO size, 50% of the portion was reserved for qualified institutional buyers, while 15% was kept for non-institutional investors and rest of 35% was allocated to retail investors.

On Saturday, Yatharth's grey market premium (GMP) stood at Rs 72 apiece --- signalling a premium listing of 24% to Rs 372 per share (IPO's upper price band Rs 300 + Rs 72).

Yatharth Hospital's IPO which opened on July 26 and closed on July 28, comprised a fresh issue worth Rs 490 crore and an offer for sale (OFS) of 2,37,44,672 equity shares under which promoter group selling shareholders Vimla Tyagi, Prem Narayan Tyagi, and Neena Tyagi participated.

Overall, the company planned to raise a whopping Rs 686.55 crore via the public offer.

The price band of the IPO was fixed at the lower end of Rs 285 apiece and the higher end of Rs 300 apiece, at a face value of Rs 10 each.

The Delhi-based multi-care hospital chain plans to utilise proceeds from the fresh issue for repayment of certain borrowings; repayment of borrowings availed by its subsidiaries such as AKS Medical & Research Centre and Ramraja Multispeciality Hospital & Trauma Centre. Further, a part of the proceeds will be used for funding CAPEX for its two hospitals namely Noida Hospital and Greater Noida Hospital. Also, it will fund CAPEX for subsidiaries AKS and Ramraja, for respective hospitals operated by them. Also, funding will be made for inorganic growth initiatives through acquisitions and other strategic initiatives; and general corporate purposes. The proceeds arising from OFS will not be utilised by the company and will be transferred to the selling shareholders.

After the IPO, the basis of allotment of equity shares is expected to take place on August 2, while the initiation of refunds will be carried out on August 3rd, as per Chittorgarh's report. Investors can expect the shares to be credited to their Demat accounts by August 4, 2023.

The IPO will be listed on BSE and NSE on August 7.

In its IPO note, Asit C Mehta Investment Intermediates said, "YHTCL is among the leading super specialty hospital in Delhi-NCR region with diverse specialty and payer mix. The company has advanced and high end medical equipment and technology. Further, we believe active collaborations with leading institutions and experts in different medical areas to improve their diagnostic and treatment capabilities and expansion in other geographical areas through inorganic growth to drive growth."

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