Multi-care hospital chain Yatharth Hospital and Trauma Care Services' shares entered the listed space at a mild premium on Monday, August 7, falling short of Zee Business Managing Editor Anil Singhvi's expectations. The Yatharth stock began its journey on BSE at Rs 304 apiece — a premium of 1.3 per cent over the upper end of its IPO price range. The stock opened on NSE at a premium of two per cent, at Rs 306.1 apiece.  

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Singhvi had estimated the listing to be in the Rs 375-390 range — a premium of 25-30 per cent.

Yatharth shares finished the listing day at Rs 333.8 apiece on BSE and Rs 331.3 apiece on NSE. 

The Rs 687-crore IPO of Yatharth concluded last month with an overall subscription of more than 36 times the equity on offer. 

EDITOR'S TAKE | Investors can hold with a stop loss at Rs 350

Singhvi, who had recommended participating in the IPO for listing gains, is of the view investors can hold on to Yatharth Hospital shares with a stop loss at Rs 350.

"Keep booking profit at higher levels and switch to better hospital stocks," he said. 

Earlier, Singhvi pointed out the following 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

Here are some of the key things to know about the Yatharth Hospital IPO: 

The IPO received a strong response from all categories of investors, securing bids for a total of 59.7 crore shares as against the 1.7 crore shares on offer, according to provisional exchange data.  

Investor category Reservation Subscription (No. of times the shares reserved)
Qualified institutional buyers 50% 85.1
Non-institutional investors 15% 37.2
Retail investors 35% 8.3
Total   36.2

The Yatharth Hospital IPO, comprising fresh issuance worth up to Rs 490 crore and an offer for sale (OFS) worth Rs 197 crore, opened for bidding on July 26 and closed on July 28.

Under the IPO, potential investors could bid for Yatharth Hospital shares in a price range of Rs 285-300 apiece in multiples of 50, translating to Rs 14,250-15,000 per lot.     

Noida-based Yatharth Hospital 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 its red herring prospectus (RHP).

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