Yatharth Hospital lists at 2% premium to issue price

Yatharth Hospital & Trauma Care Services listed on the stock market on August 7th at a premium of only 2% to the issue price. Analysts had expected the stock to trade at a 20% premium on weak sentiment across the market.
The shares started trading at Rs 304 on the BSE and Rs 306 on the NSE with an issue price of Rs 300. Analysts said the hospital chain’s status as a top superspecialty provider in Delhi NCR, its diverse specialties, and steady operational and financial growth were some of the factors for its positive listing. With an issue value of Rs 687 million, it was subscribed 36.16 times from 26 to 28 July. Qualified institutional investors bought 85.10 times their allotted shares, followed by wealthy individuals and retail investors bidding at 37.22 times and 8.34 times their reserved shares, respectively.
The public offering consisted of a new issue worth Rs.490 crore and an offering by the promoters at Rs.196.55 crore. Based in Noida, Yatarus Hospital operates three super-specialty hospitals in Delhi NCR and in Madhya Pradesh he operates one multi-specialty hospital with a capacity of 1,405 beds.
The company reported revenue increased at a compound annual growth rate of 51% from FY2021 to FY2023 due to increases in patient numbers, bed occupancy rates and average revenue per occupied bed. During the same period, PAT margin increased from 8.57% to 12.64% and his return on equity improved from 25.06% to 35.95%. Yasas Hospital’s current debt-to-equity ratio is 1.5 times in FY23. After the IPO, the debt-to-equity ratio is expected to decrease to 0.03 times due to the repayment of 245 million rupees. Considering its high ROE (36%) and ROCE (24.4%), Nirmal Bang analysts believe Yatharth is being offered at a reasonable valuation of 20.9x EV/EBITDA in FY2023 compared to peers. was saying
CRISIL says India’s healthcare industry will register a healthy growth of 11.3 per cent annually from FY2023 to FY2027, driven by long-term structural factors, rising affordability and the potential of the Ayushman Bharat programme. Predicting. Analysts say this is a big boost for Yatars Hospital.