Noida-based Yatharth Hospital & Trauma Care Services Limited is coming out with an IPO for approximately Rs. 610 crores. (Rs. 490 cr of fresh issue & Rs. 120 cr of Pre-IPO share placement).
There is also an OFS for 6,551,690 shares.
The highlights of the IPO are
- Yatharth Hospital IPO price – Rs. 285 to Rs. 300
- IPO opens on – 26th July 2023 for subscription
- Lot Size – 50 shares
- Yatharth Hospital IPO GMP – Rs. 70 – Rs. 80
Ajay Kumar Tyagi and Kapil Kumar are the promoters of Yatharth Hospital Limited as per the RHP.
Detailed information on Yatharth Hospital & Trauma Care Services Limited IPO can be found in the article.
Yatharth Hospital & Trauma Care Services Limited IPO Details
The IPO details are under –
| Particulars | Details |
| IPO Opening date | 26th July 2023 |
| IPO Closing date | 28th July 2023 |
| IPO Price | Rs. 285 to Rs. 300 |
| Lot size | 50 shares |
| Issue size | Rs. 610 Cr |
| No. of fresh shares | Xx shares aggregating to Rs. 490 crores |
| Offer for sale | 6,551,690 shares aggregating up to Rs. xx cr |
| Listing on | BSE and NSE |
Yatharth Hospital & Trauma Care Services Limited IPO Timetable
The updated IPO schedule is under –
| Particulars | Details |
| IPO Opening date | 26th July 2023 |
| IPO Closing date | 28th July 2023 |
| Basis of Allotment date | 02nd August 2023 |
| Credit of Share | 04th August 2023 |
| Listing date | 07th August 2023 |
Check here the list of other upcoming IPOs in 2023.
Healthcare Industry Overview
Nearly 17% of the rural population and 13% of the urban population in India are dependent on borrowings for funding their healthcare expenditure.
And nearly 80% of the rural population and 84% of the urban population use their household savings on healthcare-related expenditures as per “Health in India – 2018”, NSS 75th Round.
India accounts for nearly a fifth of the world’s population, but has an overall bed density of merely 15, with the situation being far worse in rural than urban areas.
India’s bed density not only falls far behind the global median of 29 beds, but it also lags that of other developing countries such as Brazil (21 beds), Malaysia (19 beds), and Vietnam (26 beds).
Indian healthcare delivery market is poised for robust growth in the medium term.
CRISIL estimates the Indian healthcare delivery industry to post healthy approximately 11.3% CAGR between Fiscals 2023 and 2027.
The growth will be driven by long-term structural factors, strong fundamentals, increasing affordability, and the potential of the Ayushman Bharat scheme.
Factors supporting growth include renewed impetus from PMJAY and government focus shifting onto the healthcare sector.
Overall the healthcare delivery market is expected to grow at approximately 11.3% compounded annual growth rate and reach ₹ 8.6 trillion in Fiscal 2027.
Yatharth Hospital & Trauma Care Services Limited Overview
Yatharth started operations in 2008 with a clinic in Noida, Uttar Pradesh and thereafter established our first hospital in Greater Noida, Uttar Pradesh in November 2010.
The hospital has grown to become a super-specialty tertiary care hospital with 400 beds, including 112 critical care beds, nine modular and other operation theatres, as of March 31, 2023
Now, Yatharth Hospital operates three super specialty hospitals located in Delhi NCR, i.e., at Noida, Greater Noida, and Noida Extension, Uttar Pradesh.
They also acquired a 305-bedded multi-specialty hospital in Orchha, Madhya Pradesh near Jhansi, Uttar Pradesh (“Jhansi-Orchha”).
The Jhansi-Orchha Hospital commenced commercial operations on April 10, 2022, and is one of the largest hospitals in the JhansiOrchha-Gwalior region in terms of the number of beds.
With this acquisition, Yatharth’s total bed capacity has increased to 1,405 beds as of the date of this RHP. In addition, our critical care program comprises 394 critical care beds, as of March 31, 2023.
Relevant key operational figures for the periods indicated are set forth below:
As of March 31, 2023, the company engaged 609 doctors and offers healthcare services across several specialties and super specialties.
Yatharth’s gross capital expenditure per operational bed was ₹ 3.91 million, ₹ 3.72 million and ₹ 3.07 million in Fiscal 2021 and 2022 and 2023, respectively.
The capital expenditure per bed has decreased with the increase in the number of operational beds over time.
Yatharth Hospital & Trauma Care Services Limited GMP
Grey Market Price (GMP) information is available approximately 4-5 days before the IPO opens and persists until the listing date.
For Yatharth Hospital & Trauma Care Services Limited Ltd IPO, we have already obtained GMP data for the past 3 days, which should provide a reasonable indication of price upon listing.
GMP serves as an effective reflection of the true narrative surrounding a stock. But you need to take precautions because GMP is not an official price and only an indicative value.
Below is a brief summary of the GMP for Yatharth Hospital & Trauma Care Services Limited Ltd for the last 4 days obtained from various sources on the internet.
| Date | GMP |
| 26th July 2023 | Rs. 55 |
| 25th July 2023 | Rs. 55 |
| 24th July 2023 | Rs. 73 |
| 23rd July 2023 | Rs. 70 |
Yatharth Hospital & Trauma Care Services Limited Subscription Data
The details will be available during the IPO issue opens for subscription.
| Date | QIB | NII | Retail | Employee | Total |
| Day – 1 26th July 2023 | 0.26 | 1.77 | 1.25 | NA | 1.08 |
| Day – 2 27th July 2023 | 0.29 | 5.85 | 3.36 | NA | 3.03 |
| Day – 3 28th July 2023 | 86.37 | 38.62 | 8.66 | NA | 37.28 |
Know more about how to invest in IPOs.
Yatharth Hospital & Trauma Care Services Limited Promoters
Ajay Kumar Tyagi and Kapil Kumar are the promoters of Yatharth Hospital Limited as per the RHP.
Both the promoters collectively hold 39,186,000 equity shares, which constitute 56.37% of the paid-up capital of the company.
Apart from that – Manju Tyagi, Neena Tyagi, Vimal Tyagi, and Prem Narayan Tyagi together constitute the promoter group. They hold, in the aggregate 24,308,000 equity Shares, which constitute 34.97% of the capital of the company.
91.34% of the total shares are held by promoters and promoter group.
Yatharth Hospital & Trauma Care Services Limited Financials
Key financials of Yatharth Hospital & Trauma Care Services Limited Ltd for the last three financial years FY2023, FY2022, and FY2021 are under –
| Details | FY- 2023 | FY- 2022 | FY- 2021 |
| Total Assets | Rs. 485.9 cr | Rs. 426.0 cr | Rs. 308.7 cr |
| Total Revenue | Rs. 523.1 cr | Rs. 402.5 cr | Rs. 229.1 cr |
| Profit After Tax | Rs. 65.7 cr | Rs. 44.1 cr | Rs. 19.5 cr |
| Net Worth | Rs. 182.9 cr | Rs. 116.8 cr | Rs. 72.4 cr |
| Other Equity (including retained earnings) | Rs. 117.4 cr | Rs. 51.3 cr | Rs. 56.07 cr |
| Total Borrowing | Rs. 263.7 cr | Rs. 258.1 cr | Rs. 186.1 cr |
The revenues from operations of Yatharth Hospital have grown in the last three years from Rs. 229 cr to Rs. 523 cr. The PAT has also grown from Rs. 19.5 cr to Rs. 65.7 cr during the same period.
The net worth has more than doubled from Rs. 72 cr in FY 2021 to Rs. 183 cr in 2023. In the past three years, Yatharth Hospital’s long-term borrowings also grew from Rs. 186 cr to Rs. 263 cr.
Yatharth Hospital & Trauma Care Services Limited Peer Comparison
The below table shows a comparison between Yatharth Hospital and other listed hospitals.
| Company | P/E | EPS | NAV | RoNW |
| Yatharth Hospital | – | 10.09 | Rs. 27.93 | 35.95% |
| Apollo Hospitals Enterprise Limited | 89.44 | 56.97 | Rs. 431.02 | 13.22% |
| Fortis Healthcare Limited | 40.36 | 7.80 | Rs. 95.93 | 8.13% |
| Narayana Hrudalaya Limited | 33.29 | 29.85 | Rs. 104.30 | 28.44% |
| Max Healthcare Institute Limited | 52.66 | 11.38 | Rs. 76.32 | 14.89% |
| Krishna Institute of Medical Sciences Limited | 42.44 | 42.03 | Rs. 208.62 | 20.14% |
| Healthcare Global Enterprises Limited | 151.02 | 2.11 | Rs. 61.86 | 3.41% |
| Global Health Limited | 52.44 | 12.58 | Rs. 90.54 | 13.43% |
Yatharth Hospital & Trauma Care Services Limited IPO – Objects of the Issue
Yatharth Hospital & Trauma Care Services Limited proposes to utilize the Net Proceeds from the Issue for –
#1. Repayment/ Prepayment of Borrowings Availed by the Company
As at June 30, 2023, the company’s total outstanding borrowings amounted to Rs. 109 cr. Mostly taken by SBI.
The company proposes to utilize an estimated amount of Rs. 100 crores from the IPO money to repay/pre-pay the borrowings.
#2. Repayment/ Prepayment of Borrowings by Subsidiaries
Yatharth Hospital & Trauma Care Services Limited proposes to replay borrowings taken by their subsidiaries –
- AKS Medical & Research Centre Private Limited
- Ramraja Multispeciality Hospital & Trauma Centre Private Limited
Both the subsidiaries have a collective outstanding borrowings of Rs. 148.1 cr.
The company proposes to utilize an estimated amount of Rs. 145 crores from the IPO money to repay/pre-pay the borrowings of subsidiaries.
#3. Funding Capital Expenditure Expenses
Yatharth Hospital acquired operations of two hospitals in 2022, namely, Noida Hospital and Greater Noida Hospital.
The company proposes to utilize an estimated amount of Rs. 25.6 crores from the IPO money to fund medical equipment expenses.
#4. Funding Capital Expenditure Expenses of Subsidiaries
AKS and Ramraja operate Noida Extension Hospital and Jhansi-Orchha Hospital.
The company proposes to utilize an estimated amount of Rs. 106.9 crores from the IPO money to fund for medical equipment for AKS and Ramraja, for respective hospitals operated by them.
#5. Funding Inorganic Growth Initiatives
In line with strategic business objectives and growth strategies, Yatharth Hospital is looking to acquire hospitals.
The company proposes to utilize an estimated amount of Rs. 65 crores from the IPO money for inorganic growth.
#6. General Corporate Purposes
The company is keeping not more than 25% of the IPO money for meeting ongoing general corporate purposes or contingencies.
Yatharth Hospital & Trauma Care Services Limited Issue Size
Rs. 610 crores.
Yatharth Hospital & Trauma Care Services Limited Limited IPO? Is it Worth?
Yatharth is among the leading super-specialty hospital in Delhi NCR with a diverse specialty and payer mix.
The hospital is equipped with advanced and high-end medical equipment and technology.
Yatharth is operating in the healthcare delivery market that is expected to grow at approximately 11.3% compounded annual growth rate and reach ₹ 8.6 trillion in Fiscal 2027
They have the ability to attract quality doctors, nurses, paramedical, and other staff.
The revenues from operations of Yatharth Hospital have grown in the last three years from Rs. 229 cr to Rs. 523 cr. The PAT has also grown from Rs. 19.5 cr to Rs. 65.7 cr during the same period.
Key Risk –
- Operating in the healthcare industry entails several operational, reputational, medical and legal risks. There are chances of legal claims, regulatory actions or other liabilities in the ordinary course of managing our hospitals.
- The company intends to invest in subsidiaries (AKS and Ramraja), to fund capital expenditure and repayment of borrowing in part or full.
- A significant portion of net proceeds from the IPO is earmarked for Jhansi-Orchha Hospital, which was non-operational from Fiscal 2020 until Fiscal 2022 and incurred losses in Fiscal 2023.
