Yatharth Hospital shares suffer worst single-day fall ever; what is worrying investors?
In a regulatory filing post-market hours on Tuesday, Yatharth Hospital said the order from the Commissionerate of Sagar Sambhag, Madhya Pradesh, to take over the premises of the Ramraja Multispeciality Hospital, stating that the land belongs to the state government, came as a total surprise to us.
Yatharth Hospital & Trauma Care Services shares plummeted nearly 11 per cent on Wednesday, after the hospital chain operator received an order from the Madhya Pradesh government to take over the premises of Ramraja Hospital. The Yatharth Hospital stock (YATHARTH) weakened by as much as Rs 47.1, or 10.9 per cent, to Rs 385 apiece on BSE, sliding below the Rs 400 mark in intraday trade for the first time in more than a week and coming within Rs 81 of an all-time low registered in August. The stock closed 11.61 per cent lower at Rs 381.9 apiece.
In a regulatory filing post-market hours on Tuesday, Yatharth Hospital said the order from the Commissionerate of Sagar Sambhag, Madhya Pradesh, to take over the premises of the Ramraja Multispeciality Hospital, stating that the land belongs to the state government, came as “a total surprise to us”.
“The Company believes that this order is not based on true facts and has decided to prefer an appeal at the Madhya Pradesh High Court. This communication is for your information under regulation 30, schedule III, Part A and will inform ones we have the final outcome in this regard,” Yatharth Hospital said.
The hospital chain operator also said that it was engaged in legal discussions regarding the order.
"No notice or communication in this regard was received by the company before and this order has come as a total surprise to us. The company believes that this order is not based on true facts and has decided to prefer an appeal at the Madhya Pradesh High Court," it said.
“We firmly believe that, during this process, there will be no immediate impact on the ongoing operations at Ramaraja Hospital. We are committed to ensure the smooth functioning of the hospital and foresee no significant impact on the financial and operational performance of the hospital,” the company added.
Yatharth Hospital & Trauma Care Services had acquired Ramraja Multispeciality Hospital & Trauma Centre Pvt Ltd on February 18, 2022 by way of acquiring 100 per cent equity share.
“Initially, Ramraja Hospital acquired total 5.698 hectare lands from different individual owners on different dates i.e. from the year 2012 to 2017... After acquiring these lands, Ramraja Hospital obtained NOCs from different government authorities for commercial/hospital operation and the government converted these lands from agriculture to commercial/hospital use,” according to Yatharth Hospital.
“Ramraja Hospital got operational in year 2017 and during year 2019 for road widening the National Highway Authority of India (NHAI) acquired 0.962 and 0.418 hectare land from the last owner of Ramraja Hospital and government paid compensation for the land acquired,” it added.
Yatharth Hospital share price: Past performance
Since its listing in August 2023, shares of Yatharth Hospital have gained over 16 per cent.
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