IPO listed on 7 Aug'23
Yatharth Hospital & Trauma Care Services Ltd
Minimum Investment
₹ 15,000 / 50 shares
Grey market premium
₹ 55 (18% premium)
Issue price
₹ 300
Listing price
₹ 306
% since launch
Listing on
August 7, 2023
Our Verdict:
Subscribe
- The company has shown strong upward trends in both revenue and profit, with robust return ratios. Moreover, it is likely to retire debt from the IPO proceeds, which will improve its profitability going ahead.
- From a valuation standpoint, the IPO appears to be reasonably priced at a PE multiple of 39.7x (based on FY23 earnings). Additionally, the grey market premium (GMP) for the issue, often used as a gauge for investor sentiment, indicates a premium listing.
- Considering these factors, we recommend a ‘Subscribe’ rating to this IPO from a long-term perspective.
About the company
Founded in
28 Feb'08
Managing director
Kapil Kumar
- Yatharth Hospital & Trauma Care Services Ltd ranks among the top ten private hospitals in Delhi NCR, based on the count of beds.
- They currently manage three super specialty hospitals in Delhi NCR and have recently expanded their operations by acquiring a 305-bed multi-speciality hospital in Orchha, Madhya Pradesh, which started business operations in April 2022.
- As of March 31, 2023, they boast a total bed capacity of 1,405. Their critical care program includes 394 beds dedicated to critical care.
STRENGTHS
- Robust growth: Yatharth has demonstrated impressive growth over the past two years. Its operating revenue observed a CAGR of 50.8%, reaching Rs 520 crore in FY23. Additionally, the net profit surged by a CAGR of 83.2% to reach Rs 65.8 crore in FY23.
- Healthy financial indicators: The steady growth in revenues and profits is noteworthy, with the PAT margin expanding from 8.57% to 12.64%. Also, there was a remarkable improvement in its Return on Equity from 25.06% to 35.95% over FY21-23.
RISK FACTORS
- Decline in Bed Occupancy Rate: There was a notable drop in the bed occupancy rate from 49.97% in FY22 to 45.33% in FY23.
- Risk Associated with Ramraja Acquisition: The company took Ramraja, a non-operational non-performing asset since Fiscal 2020, under its wing in February 2022. Despite resuming operations in April 2022, Ramraja still possesses a significant negative net worth of Rs 43.86 crore as of March 31, 2023. The inability to successfully integrate this acquisition could potentially damage the company's reputation and decrease revenue levels.
- Downgrading of Borrowings: In the past, the company's borrowings have experienced downgrades from a BB+ by India Rating in April 2018 to D in April 2019, and from BBB- by Brickwork in February 2019 to BB+ in March 27, 2020.
Issue details
Issue type
Mainstream
Issue size
₹ 687 crore
Fresh Issue
₹ 490 crore
OFS
₹ 197 crore
Price range
₹ 285 - 300
Lot size
50 shares
Issue Objective
Net proceeds of the fresh issue will be utilised towards:
- Repayment or pre-payment of certain outstanding borrowings;
- Funding capex requirements of the company and its subsidiaries;
- Funding inorganic growth initiatives through acquisitions and other strategic initiatives; and
- General corporate purposes
Dates
Bidding open
26 Jul'23
Bidding close
28 Jul'23
Allotment date
2 Aug'23
Refund date
3 Aug'23
Listing
7 Aug'23
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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