Yatharth Hospital and Trauma Care Services Ltd has taken a significant step towards going public, as its initial public offering (IPO) opened for subscription on Wednesday, 26 July. The IPO, with a price band set at ₹285 to ₹300 per equity share, has garnered considerable attention from investors. Ahead of the public offering, the company successfully raised ₹205.96 crores from 18 anchor investors at the upper price band of ₹300 per equity share on Tuesday, July 25.
Prominent investors, including SBI Life Insurance Company, Goldman Sachs (Singapore), Kotak Mahindra Life Insurance Company, ICICI Prudential Mutual Fund, Max Life Insurance Company, HDFC MF, and BNP Paribas Arbitrage, have shown interest in the IPO. This substantial investment from anchor investors further strengthens the confidence in Yatharth Hospital's potential in the market.
The IPO consists of a fresh issuance of shares amounting to ₹490 crore, along with an offer for sale by the promoters, Vimla, Prem Narayan, and Neena Tyagi, who are collectively selling 65.51 lakh equity shares.
Yatharth Hospital plans to utilize the net proceeds from the IPO for various purposes, including the repayment of debt and funding capital expenditure for its two hospitals, located in Noida and Greater Noida. Additionally, the funds will be utilized to support the growth initiatives of its subsidiaries, AKS and Ramraja, through acquisitions, as well as for general corporate purposes.
The IPO has reserved not more than 50% of the shares for Qualified Institutional Buyers (QIB), a minimum of 15% for Non-Institutional Investors (NII), and not less than 35% for Retail Investors.
The company's equity shares carry a face value of ₹10 each, with a floor price of 28.5 times and a cap price of 30.0 times the face value. The price-to-earnings ratio at the floor price is 28.25 and at the cap price is 29.73. Interested investors can bid for a minimum of 50 equity shares and in multiples of 50 equity shares thereafter.
With the grey market premium (GMP) currently standing at ₹55, indicating a premium of ₹55 on each share, investors have shown considerable enthusiasm for Yatharth Hospital's IPO. Considering the upper end of the price band and the current GMP, the estimated listing price for Yatharth Hospital shares is expected to be ₹355 apiece, marking an 18.33% increase from the IPO price of ₹300.
The IPO subscription will close on Friday, 28 July, and Yatharth Hospital shares are set to be listed on the stock exchanges on Monday, 7 August. Link Intime India Private Ltd is the registrar to the public offer, and the book running lead managers include Intensive Fiscal Services Private Ltd, Ambit Private Ltd, and IIFL Securities Ltd.
