Yatharth Hospital IPO has so far been subscribed by 36% on Day 1. The initial public offering (IPO) was scheduled to open on July 26, Wednesday and close on July 28, Friday.
The IPO saw an overall decent response from retail investors at 50% and non institutional investors(NIIS) at 40% on the day 1 of subscription. Qualified Institutional Buyers (QIBs) and employees did not receive any subscription so far.
The IPO has received bids for 60,15,100 shares against 1,65,17,823 shares on offer, at 12:30 IST, according to data from the BSE. The retail investors bid received 46,03,150 shares against 83,10,636 shares on offer for this segment.
The company has fixed the price band at ₹285 to ₹300 per equity share for the proposed initial public offer. It raised ₹205.96 crores from 18 anchor investors at the upper price band of ₹300 per equity share on Tuesday, July 25.
SBI Life Insurance Company, Goldman Sachs (Singapore), Kotak Mahindra Life Insurance Company, ICICI Prudential Mutual Fund, Max Life Insurance Company, HDFC MF, and BNP Paribas Arbitrage are some of the prominent anchor investors.
Analysts Gives ‘Thumbs Up’
Several analysts have recommended ‘subscribe’ to the issue given strong financials and growth potential in North India.
“On FY23 financials, the IPO is valued at 39.2x P/E, 20.9x EV/EBITDA and 5.4x EV/Sales. In view of strong financials, growth potentials in Northern India, debt free company post IPO proceeds, advanced and patient-friendly facilities we give a ‘SUBSCRIBE’ to the issue,” said the Reliance Securities in its report.
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Yatharth Hospital is a private hospital which provides healthcare services and is based in the northern region of India.
“Their revenue contributes majorly 34% from government deals which can stretch the debtor days and margin as well. Hence, we recommend subscribing to the issue for Listing gains,” said Canara Bank Securities Ltd in its report.
During FY21-FY23, the company's PAT margin grew from 8.6% to 12.6% and its ROE improved from 25.1% to 36%.
"The institution boasts a diverse range of specialities and payer mix, demonstrating a track record of consistent and stable operating and financial performance with sustained growth. Also, it is available at a reasonable valuation compared to its peers," Marwadi Financial Services said.