Yatharth Hospital and Trauma Care Services IPO saw a healthy response on the last date, July 28, of its final bidding at 10.76 times, as they applied for 17.78 crore equity shares, against the issue size of 1.65 crore shares.
Retail investors bid 5.62 times the allotted quota, while high-networth individuals (non-institutional investors) bought 18.65 times the reserved portion. The qualified institutional buyers were subscribed 13.92%.
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Qualified institutional buyers have 50% reservation in the public issue, including anchor book through which the company already raised Rs 206 crore on July 25, a day before the issue opening.
Around 15% of the total offer was reserved for high networth individuals, while the remaining 35 percent shares of the IPO are reserved for retail investors.
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.
What are analysts saying?
Several analysts have recommended ‘subscribe’ to the issue given strong financials and growth potential in North India.
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“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.