Yatharth Hospital IPO hits Street; should you subscribe?

Yatharth Hospital and Trauma Care Services' initial public offer (IPO), including fresh issuance of shares worth Rs 490 crore, hit the Street on Wednesday, July 26. Yatharth Hospital and Trauma Care Services is a Noida-based multi-care hospital chain operator. 

Should you apply for the Yatharth Hospital IPO? Here's what Anil Singhvi recommends

Zee Business Managing Editor Anil Singhvi recommends applying for the IPO of Yatharth Hospital and Trauma Care Services for listing gains.

He pointed out a few key points about the company: 

Positive

• Experienced promoters
• Strong financial data
• Reasonable valuation

Negative

• Low occupancy levels
• So far high growth on a low base

आज से खुले यथार्थ हॉस्पिटल के IPO में क्या हो स्ट्रैटेजी?

देखिए, Yatharth Hospital के IPO से जुड़ी हर जरूरी बात#YatharthHospitalIPO #IPOAlert @ZeeBusiness https://t.co/9y4NgGrlsM

— CA Anil Singhvi Zee Business (@AnilSinghvi_) July 26, 2023

Here are some of the key things to know about the Yatharth Hospital and Trauma Care Services IPO: 

Important dates: The subscription window will be available for three trading days, from 10 am to 5 pm, till Friday, July 28. The basis of allotment is likely to be finalised on August 2, the credit of shares to eligible bidders on August 4 and the listing of shares on August 7. Yatharth Hospital and Trauma Care Services shares will be listed on bourses BSE and NSE. 

Issue price: Under the IPO, Yatharth Hospital shares will be available for bidding in a price range of Rs 285-300.  

Lot size: Potential investors will be able to bid for Yatharth Hospital shares in multiples of 50 under the public offer, translating to Rs 14,250-15,000 per lot.     

Fund utilisation: The company plans to utilise the proceeds from the fresh issue towards repayment or prepayment of certain borrowings, capex, funding inorganic growth initiatives and for general corporate purposes, according to the red herring prospectus (RHP).

Investor reservation: While up to 50 per cent of the issue is reserved for qualified institutional buyers (QIBs), up to 15 per cent is for non-institutional investors (NIIs) and the remaining 35 per cent for retail investors.

Financials: For the year ended March 31, 2023, the company registered a net profit of Rs 65.8 crore, up 48.9 per cent compared with the previous year. Its revenue stood at Rs 520.3 crore for the financial year 2022-23, as against Rs 400.9 crore for the previous year, according to the RHP. 

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