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Yatharth Hospital IPO Update: Issue Price, Launch Date, GMP & Review

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Yatharth Hospital Limited – About the Company

Starting its first dispensary in Noida, Yatharth Hospital has now become one of the leading hospitals in Delhi-NCR with wide-spread hospitals located in Noida and Greater Noida. And Among these Noida Extension Hospital is the biggest one with a bed capacity of 450 beds making it a leading Hospital in the Noida region.

Yatharth Hospital operates specialty hospitals in Delhi-NCR, out of which three are located in Noida, Greater Noida, and Noida Extension, Uttar Pradesh. While the fourth one has recently started in Jhansi, UP. As per the Draft Red Herring Prospectus(DRHP) filed by Yatharth Hospital with SEBI, it has a total bed capacity of around 1405 beds to date. Moreover, as of January 31, 2022, it has 318 critical care beds, and all the hospitals are accredited by the NABH (National Accreditation Board for Hospitals & Healthcare Providers).

Operating with world-class 370 doctors, Yatharth Hospital offers, a wide range of healthcare and medical treatment facilities using the most advanced and resourceful infrastructure facilities to deliver more focused patient care.  Further, it is looking to expand its operations by adding more Hospitals in other parts of the country. And the expansion of these business operations will help Yatharth Hospital to become the leading Hospital in the country.

Yatharth Hospital IPO Objectives

The main objective of raising the fund through IPO is, to meet the capital expenditure of its two leading Hospitals in Noida. However, the company is also going to use the party of funds in reducing the debt burden and borrowings of the company, which will help it to reduce the interest cost resulting in improved margins.

Yatharth Hospital is also going to use a significant portion of the IPO to fund the expenses of subsidiaries of the company. And also utilize some part of the fund for the promotion of organic growth of its Hospital chains.

Yatharth Hospital IPO Details:

IPO Open Date July 26, 2023
IPO Close Date July 28, 2023
Listing Date August 7, 2023
Face Value ₹10 per share
Price Rs. 285 to Rs. 300 per share
Lot Size 50 Shares
Fresh Issue  Shares (aggregating up to ₹490.00 Cr)
Offer for Sale 6,551,690 shares (aggregating up to ₹Cr)
Issue Type Book Built Issue IPO
Listing At BSE, NSE
QIB Shares Offered Not more than 50% of the Offer
NII (HNI) Shares Offered Not less than 15% of the Offer
Retail Shares Offered Not less than 35% of the Offer

Yatharth Hospital IPO Issue Price & Size:

The issue price of Yatharth Hospital IPO will be between Rs. 285 to Rs. 300. And as per the DRHP 6,551,690 equity shares are available for offer for sale and the fresh issue of shares are at Rs.490 cr.

Yatharth Hospital IPO Launch Date

The Yatharth Hospital IPO will be open on 26 July and the last day of applying for the IPO will be on 28 July. Investors can apply for the IPO during this period and wait till the allotment or refund of their money if they are not allotted any share.

Yatharth Hospital Financial Statements:

Particulars (Rs in cr.) FY22 (6M) FY21 FY20 FY19 CAGR (FY19 to FY21)
Revenue from sale 210.97 228.67 146.04 101.83 31.00%
Other Income 0.86 0.52 0.14 0.24
Cost Of Goods Sold 43.34 46.32 26.73 19.49
Employee Cost 38.06 46.69 26.81 20.47
Other expenses 65.82 68.66 54.92 42.43
EBITDA 64.62 67.53 37.71 19.69 50.80%
EBITDA margin% 30.63% 29.53% 25.82% 0.19
Depreciation 12.59 20.56 21.29 8.38
Interest 10.91 18.84 18.91 6.29
PBT 41.12 28.12 -2.49 5.02 77.60%
Total tax 14.15 8.54 -0.44 1.04
PAT 26.98 19.59 -2.05 3.98 70.10%
PAT margin% 12.79% 8.57% -1.41% 3.91%
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Yatharth Hospital Financial Performance

From FY19 to FY22, Yatharth Hospital has shown significant revenue growth as well as operating profits. During this period the revenue from, operations has grown at a CAGR of 31% and EBITDA grew in the same period at 50%.

Yatharth Hospital has optimized its operating cost during the same period resulting, in the EBITDA margin of the Hospital having improved from 19% to 30% from FY19 to FY22. Not only the operating margins, but Yatharth Hospital has also improved the PAT margins from 3.90% to 12.80% resulting in its PAT registered growing at a CAGR of 70% reached at Rs 26.98 crore.

Yatharth Hospital IPO Promoters & Shareholding of the Company

Ajay Tyagi, Kapil Kumar, and Manju Tyagi are the promoters and leading shareholders of the Yatharth Hospital. Neena Tyagi, Vimla Tyagi and Prem Narayan Tyagi are other leading shareholders who are offloading their part of stakes from this hospital. Check below the details of shareholdings and share they held.

S. No. Name of the Selling Shareholder No. of Equity Shares Held Percentage of the pre-Offer paid up equity share capital
1 VimlaTyagi 37,43,000 5.71%
2 Prem Narayan Tyagi 20,21,200 3.09%
3 NeenaTyagi 70,19,600 10.71%
Total 1,27,83,800 19.51%
Other Shareholders (Promoters & Promoter Group)
4 Ajay Kumar Tyagi 2,70,21,600 41.24%
5 Kapil Kumar 1,21,64,400 18.57%
6 ManjuTyagi 1,15,24,200 17.59%
Total 6,34,94,000 96.91%

 

Why Invest in Yatharth Hospital IPO?

Investing in Hospitals and Pharma companies always remains the right decision for anyone. Here Yatharth Hospital is one of them,going to become the leading hospital in the country with significant growth opportunities for the stakeholders too.

However, apart from some privileges being in the healthcare sector, there are various risk factors and limitations given below that you should know before taking any decision in investing in the Yatharth Hospital IPO.

Strengths:

  • Yatharth Hospital is known as the top ten private healthcare providers with multi-specialty services in Northern India.
  • Yatharth Hospital is adding more beds, and recently it has acquired the 305-bed facility, making its bed capacity 1405.
  • Yatharth is operating with highly qualified medical professionals and other medical staff members with the ability to attract such quality professionals and, staff to join them and work and deliver world-class services.
  • Moreover, the Hospital is using advanced-grade machines, devices and medical equipment to perform efficiently and effectively.
  • It's all the hospitals, in Delhi NCR region are accredited by the NABH. And it has well-equipped laboratories in all three operating hospitals for diagnostic services in microbiology, biochemistry, haematology, histopathology and molecular biology.
  • At the financial end, Yatharth Hospital has performed well with incredible growth in Revenue and Net Profit. Its revenue grew at CAGR of 31% between FY19 to FY22, while EBITDA and PAT grew 50% and 70% respectively.
  • Yatharth Hospital is capable to pass on the increasing cost of healthcare successfully to patients. Result it has shown a CAGR growth of 50% in operating profit and 70% in profit after tax in the same period.

Risks:

  • One of the major risks in running such Hospitals is, highly qualified and experienced doctors, if Yatharth Hospital is unable to retain such professionals, it would be difficult to maintain its reputation in the market.
  • Being operating in the Medical and Hospital sector, any kind of unfavourable rules and norms by the Central Government can affect the business of the company. Hence, any kind of such impact can also affect the revenue of the company.
  • Competition from the rivals or entrance of new rivals in the industry operating in the same region can also affect the performance of Yatharth Hospital.
  • Owing to the rise in the cost of expenditure and other expenses, it might be difficult for Yatharth Hospital to maintain its operating cost. This kind of situation will make it difficult to maintain the operating and bottom-line margins.

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    Also Read: What are the Risk Factors Involved in Applying for an IPO

    Yatharth Hospital IPO Grey Market Premium

    As per the current demand for the shares launched in IPO, the Grey Market Premium of Yatharth Hospital is around Rs XXXX. Though, depending on the application in the IPO, the GMP may change further till the date of listing. Grey Market Premium is the anticipated price of stock likely to open on listing day.

    Also Read: What is Grey Market Premium in IPO: How is GMP Calculated &Reliable

    Yatharth Hospital IPO Review & Analysis

    Though, the Yatharth Hospital carries a strong brand as a one of the top Super Specialty Hospitals in the Northern region of India. During the COVID-19 outbreak, its operations were not affected, even though it has performed well.

    Yatharth Hospital’s three units in Delhi NCR are NABH certified and it has international-level infrastructural facilities and quality standards. Apart from this Hospital is further expanding its operations, medical facilities and patient-taking care capabilities through its recently acquired subsidiaries operating in the same business.

    Investing in the healthcare or medical field would be not a risky bet, as owing to the rise in population and people falling to illness more frequently, there is too much demand for medical treatment and the healthcare industry.

    And now with a rise in income and improved standard of living, people opt for such modern and more resourceful medical facilities to get better treatment and timely cures. And Yatharth Hospital will get the advantages of industry trends, which will also enhance the wealth of the investors in terms of equity.

    The financial performance of this Hospital is also quite impressive, showing significant growth in revenue and profit with improved margins in operating profit and net profit. The improved operational approach with better efficiency will also help Yatharth Hospitals to achieve new sales targets and also earn more profits.

    At the valuation end, without the IPO issue price, it is impossible to evaluate the share price, whether it is expansive and fairly valued. And when the actual price will be known, it would be easier to compare it with its peer group.

    If Yatharth Hospital IPO is issued at a discounted price or available at fairly priced rates, then you can invest in the stock with long-term as well as listing gains point of view. However, if shares in the IPO are issued at a very expensive price, you should avoid or wait if it comes at a lower price after the listing in the stock exchanges.

    How to Apply for Yatharth Hospital IPO?

    Applying to the Yatharth Hospital is very simple and trouble-free if you choose Moneysukh for investing in the Equity, Commodity and Currency Market. Just open a demat account with Moneysukh and follow the steps given below.

    Step 1:When Yatharth Hospital IPO is open, visit trade.moneysukh.com.

    Step 2:Now use your Moneysukh User ID & password and login into your account.

    Step 3:Browse here in the IPO section and select the IPO you are looking to invest in.

    Step 4:Now fill in the essential information like price, quantity, and other details.

    Step 5:After this finish the payment process and your IPO application is successful.

    How to Check Yatharth Hospital IPO Allotment Status?

    Checking the IPO status is also easy if you have applied for the Yatharth Hospital. Here, apart from Moneysukh, you have multiple options to check your IPO application details and allotment status. You can visit BSE, NSE and other sites to check the allotment status and to know how to check read our blog mentioned below.

    Also Read: How to check IPO allotment status on NSE, BSE through Moneysukh

    If an IPO is oversubscribed there is less chance of getting the allotment of shares to everyone. However, if you have bid at a cutoff price and allotment is done on a proportionate basis, you can get a few shares into your account as per the lot size in your application.

    Also Read: How to Increase the Chances of IPO Allotment

    Till the allotment date is ended, you should wait, if you get the allotment of shares, it will be transferred into your demat account. However, if you have not been allotted any shares, your application money will be refunded.

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