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  • Writer's pictureJatin Agarwal

Yatharth Hospital IPO


Yatharth Hospital Logo

Company and IPO Overview:


Yatharth Hospital and Trauma Care Services Limited, founded in 2008, is a multi-care hospital network. In terms of the number of beds, two of its hospitals, namely, Noida Extension Hospital and Greater Noida are the 8th and 10th largest private hospitals in Delhi.


Yatharth Hospital has three operational super speciality hospitals located in Delhi NCR and Uttar Pradesh. Additionally, the hospital has acquired a 305-bedded multi-speciality hospital in Orchha, Madhya Pradesh near Jhansi which commenced operations in FY22. This makes it one of the largest hospitals in the Jhansi Orchha-Gwalior region in terms of the number of beds.


The services provided by all its hospitals located in Noida, Greater Noida and Noida Extension, in Uttar Pradesh have been rated “5 Star” by Infomerics Analytics and Research Private Limited in 2022. The hospital located in Noida Extension Hospital has 450 beds and is one of the largest hospitals in the area.


Yatharth Hospital and Trauma Care Services provide patients with various Amenities and facilities. All of their hospitals are accredited by the NABH. The ones located at Greater Noida and Noida Extension are accredited by NABL. The hospitals comply with all necessary international quality standards to ensure safety and recovery of the patients.


A team of 370 doctors is engaged with the hospital. They offer healthcare services across numerous specialties and super specialties. The services provided by the hospital include Multi-speciality covering cardiology, orthopaedics, neurology, renal sciences, oncology, trauma and critical care, laparoscopic and bariatric surgery, cosmetic and reconstructive surgery, rheumatology, dermatology, ophthalmology, etc.


After a series of successful IPO’s Yatharth Hospital IPO is the next main board IPO which is ready to set its footprints in the stock market and the company is about to raise around ₹ 687 crores via IPO comprising fresh issue of ₹ 490 crores and Offer For Sale up to ₹197 crores only. The price band of the issue is ₹ 285 to ₹ 300 with a minimum market lot of 50 shares. Yatharth Hospital IPO subscription quota for retail is 35.00%, NII is 15.00% and QIB is 50.00%.


Financials (rounded off):

Date

Total Revenue (₹ in cr)

​​​PAT (₹ in cr)

​31/03/2021

229

20

31/03/2022

403

44

31/03/2023

523

66


Objectives of the Issue:

1. Repayment/ prepayment, in full or part, of certain borrowings availed by the Company.

2. Repayment/ prepayment, in full or part, of certain borrowings availed by the Subsidiaries, namely, AKS Medical & Research Centre Private Limited and Ramraja Multispeciality Hospital & Trauma Centre Private Limited.

3. Funding capital expenditure expenses of Noida Hospital and Greater Noida Hospital which are a part of the company

4. Funding capital expenditure expenses of AKS and Ramraja for the respective hospital operated by them.

5. Funding different inorganic growth initiatives which include growth through acquisitions.


IPO Details:

IPO Date

26/07/2023-28/07/2023

Face Value

₹10 per share

IPO Price Band

₹285-₹300 per share

IPO Lot Size

50 Shares

Listing at

NSE, BSE

Basis of Allotment

02/08/2023

Credit of Shares in Demat

04/08/2023

Listing Date

07/08/2023

Pre-Issue Shareholding

-

Post-Issue Shareholding

-

Retail Minimum Lot Size

50 shares (₹15,000)


Valuations & Margins:

Indicators

FY 21

FY 22

FY 23

EPS

2.77

6.78

10.09

P/E

-

-

29.73

EBITDA (%)

29.3

27.64

25.71

Debt/Equity

2.31

2.21

1.44

ROCE (%)

18.43

22.93

26.1


Important things to note about the Company:


Top reasons to consider the IPO:


1. The company’s hospitals, namely, Noida Extension Hospital and Greater Noida are the 8th and 10th largest private hospitals in Delhi NCR, respectively, as of FY23. Given the market position and growing medical tourism in the Delhi NCR region, Yatharth Hospital has opportunities to build more hospitals in existing and new markets as well as enhance its local community presence.


2. Yatharth Hospital is equipped with high-end machines and devices that assist its practitioners in providing timely, efficient and quality healthcare. The advanced infrastructure, technology and equipment have improved our operational efficiency and enhanced our patients’ experience.


3. Yatharth Hospital’s success can partially be attributed to its qualified medical professionals and other staff, and its ability to attract such quality professionals and staff. The hospital offers a variety of engagement models, including a fixed salary, minimum guarantee, and “service fee” models. These structures compensate the doctors for an increase in revenue, ensuring that they are motivated to retain their current patients and draw in new ones.


4. Yatharth Hospital is led by a highly qualified and experienced management team who ensure that the company is led by the right mix of professionals from various fields.


Risk factors to watch out in the IPO:


1. Failure to receive favourable pricing from its suppliers or the restriction to pass on its increased costs to its payers can adversely affect the profitability of the business. The hospital also deals with high fixed costs that can also impact its profitability.


2. The business may get affected if it is unable to secure or renew the approvals, licenses, registrations, and permits we need to run promptly, or even at all.


3. Failure to attract or retain doctors, nurses and other healthcare professionals can significantly impact the operations of the hospital.


4. Yatharth Hospital derived 33.17% and 22.19% of its revenue from operations in FY21 and FY22 from COVID-19 which we may not continue to earn in future.


Crisp Insights:

  • Yatharth Hospital IPO GMP Today: The Company is commanding a strong GMP of around 20-30%.

  • Yathrath Hospital IPO Review: Listing gains possible as per GMP data.


Disclaimer: All information is provided for educational and informational purpose only. Data is fetched from publicly available sources such as the DRHP filed by the company. The website or the author takes no guarantee for the accuracy of the data however, we have tried our best to present accurate data to out readers. Please consult a financial advisor or do your own analysis before investing/trading in the stock market.


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