Noida-based hospital chain Yatharth Hospital and Trauma Care Services is set to launch its first public offering. The Initial Public Offering (IPO) will be open for registration from July 26. Here are a few things an investor should know.
1) IPO date
Bidding for the IPO will begin on July 26, and the last day to register for an IPO will be July 28.
2) Price range
The company has set a price of Rs 285-300 per share for its IPO. 3) Size of the IPO
The total fundraising amount will be Rs 676.7 crore at the lower price and Rs 686.55 crore at the higher price through public offering. The issuance includes a new share issue of Rs 490 crore and an offer of sale (OFS) of 65,51 lakh shares of equity by promoters Vimla Tyagi, Prem Narayan Tyagi and Neena Tyagi. The actual size of the new issue was Rs 610 crore, which was later reduced to Rs 490 crore when the company raised Rs 120 crore through private placement (IPO reservation) 40,000 shares priced at 300 Rs per issue on July 6, prior to filing a fake prospectus with the Registrar of Companies.
4) Objectives of the program
Yatharth Hospital will use the new proceeds from the issuance to repay the hospital’s debt, capital costs, and fund inorganic growth initiatives, in addition to general corporate purposes.
5) Lot size
Investors can bid on a minimum of 50 shares and multiples of 50 shares thereafter. Retail investors can invest a minimum of Rs 15,000 per lot (50 shares X Rs 300) and their maximum investment will be Rs 1.95 lakh (13 lots).
6) Company Profile
Yatharth Hospital & Trauma Care Services Limited operates three super specialty hospitals located in Delhi NCR i.e. Noida, Greater Noida and Noida Extension, Uttar Pradesh. In addition, it acquired a 305-bed general hospital in Orchha, Madhya Pradesh near Jhansi, Uttar Pradesh, which commenced commercial operations on 10 April 2022 and is one of the largest hospitals in the region. Jhansi-Orchha-Gwalior is in the number of hospital beds. With this acquisition, the total hospital bed capacity increases to 1,405 beds.
Its intensive care program includes 394 intensive care beds, as of March 31, 2023. Furthermore, Noida Extension Hospital with 450 beds is one of the largest hospitals in the Noida Extension area of Uttar Pradesh. As of March 31, 2023, it employed 609 doctors and provided medical services in several specialties and super specialties
7) Finance
Yatharth has demonstrated stable financial and operational performance as well as growth over the past three years. Its EBITDA grew at a CAGR of 41.29% from Rs 67.01 million in fiscal year 2021 to Rs 133.76 million in 2023. Its net profit increased from Rs 19.58 million in fiscal year 2021 to Rs 44.16 million in the fiscal year 2022, this figure continues to grow to Rs 65.76 billion. in fiscal year 2023.
His net worth increased from Rs 72.45 billion on March 31, 2021 to Rs 182.96 on March 31, 2023. Yatharth recorded an operating profit margin of 25.71% in fiscal year 2023. Its active beds grew from 864 in fiscal 2021 to 1,405 in fiscal 2023 at a CAGR of 27.52% and its bed occupancy rate increased from 41.63% in fiscal year 2021 to 49.97% in FY 2022. In FY 2023, its hospital bed occupancy rate reached 45.33% when Jhansi- Orchha commenced commercial operations.
8) Promotion and management
The people who drive the hospital are the doctors themselves. In addition, its Board of Directors consists of individuals with diverse experience in the fields of hospitality, healthcare, finance, banking and general economics and administration. Chief Executive Officer Yatharth Tyagi integrates international business into strategic expansion plans. He holds a Bachelor of Commerce and Management from Leeds Beckett University and a Master of Science in International Health Management from Imperial College London. Dr. Sanjeev Upadhyay is a medical doctor and affiliated with the National Children’s Fund of America as a health and nutrition expert, Mukesh Sharma is a former banker and Ila Patnaik is a senior economist. Upadhyay, Sharma and Patnaik recently joined its board.
The CEO is Amit Kumar Singh, who has 16 years of experience and is a senior manager at various healthcare organisations. The Chief Financial Officer is Pankaj Prabhakar, a qualified Certified Public Accountant and our Company Secretary and Chief Compliance Officer is Ritesh Mishra, a qualified Company Secretary.
9) Risks and Concerns
According to brokers, here are some of the top risk factors:
-Yatharth relies heavily on doctors, nurses and other healthcare professionals, and the company’s financial and business performance will be significantly affected if the company is unable to attract, retain and retain. or train these professionals. – The company relies on its brand strength and reputation. Failure to maintain and enhance these trademarks and reputations and any negative media and public accusations against them can seriously and adversely affect the level of recognition and trust of the Company. market for the Services, which could have a material adverse effect on the company’s business, financial position, results of operations and prospects.
– If a company is unable to increase hospital occupancy, it may not be able to generate sufficient returns on its capital expenditures, which can significantly reduce operational efficiency and profitability.
10) Date of allocation and registration.
The basis for the IPO share allocation will be finalized by August 2 and the shares will be credited to the deposit accounts of eligible investors by August 4. Refunds will be remitted. into the bank accounts of unsuccessful investors by August 3.
Trading in shares of Yatharth Hospital will begin on August 7, in line with the IPO schedule.
