Yatharth Hospital IPO (Day 1): Issue subscribed 1.08 times on NII, retail push; check latest GMP
Yatharth is aiming to raise about Rs 687 crore via primary markets, which includes a sale of fresh equity shares worth Rs 490 crore and an offer for sale (OFS) of around 65.52 lakh equity shares by its promoters including Vimla Tyagi, Prem Narayan Tyagi and Neena Tyagi.
- Jul 26, 2023,
- Updated Jul 26, 2023 5:35 PM IST
The initial public offering (IPO) of Yatharth Hospital and Trauma Care Services saw a decent demand on the first day (Day 1) bidding, driven by strong interest in non-institutional investor (NII) and retail categories. The three-day IPO would conclude on Friday, July 28. The hospital chain has set Rs 285-300 as the price band, with a lot size of 50 equity shares. At 3:24 pm today, the issue was booked 1.08 times. Yatharth's IPO received 1,78,44,450 bids compared to the issue size of 1,65,17,823 shares, as per BSE data.
On Day 1, the portions reserved for NIIs and retail investors saw the maximum push and was subscribed 1.77 times and 1.25 times, respectively. The quota for qualified institutional buyers (QIBs) fetched 26 per cent of the total bids.
A total of 50 per cent of the issue is reserved for the QIBs. The NII quota is set at 15 per cent. The remaining 35 per cent shares would be allocated to retail investors.
Yatharth is aiming to raise about Rs 687 crore via primary markets, which includes a sale of fresh equity shares worth Rs 490 crore and an offer for sale (OFS) of around 65.52 lakh equity shares by its promoters including Vimla Tyagi, Prem Narayan Tyagi and Neena Tyagi.
Ahead of the IPO, Yatharth allocated 68,65,506 equity shares to 18 anchor investors at a price of Rs 300 apiece to raise Rs 205.96 crore. They included marquee investors included ICICI Prudential, Nippon Life, HDFC Mutual Fund, Aditya Birla Sun Life, Bandhan Mutual Fund, HSBC Global Investment, Troo Capital, Carnelian Capital, BNP Paribas, Goldman Sachs and Jupiter India Fund among others.
The net proceeds from the issue would be used for repayment or prepayment of borrowings availed by the company and its subsidiaries, namely AKS Medical & Research Centre and Ramraja Multispeciality Hospital & Trauma Centre. It would also be used for funding capital expenditure, inorganic growth initiatives and general corporate purposes.
Incorporated in 2008, Yatharth operates four-super specialty hospitals located in Noida, Greater Noida and Noida Extension. Also, the company has recently acquired a 305-bedded multi-specialty hospital in Orchha, Madhya Pradesh to extend its operations and services.
Intensive Fiscal Services, Ambit and IIFL Securities are the book running lead managers to the issue, while Link Intime India has been appointed as the registrar. The stock would be listed on both BSE and NSE, with August 7 as the tentative date of listing.
Brokerage firms are mostly positive on the issue and have suggested subscribing for the issue. However, select brokerage firms are skeptical over the issue on the back of high fixed cost, debt-heavy operational expenses, dependency on select special facilities and government deals compressing the margins.
Grey market price (GMP)
In the grey market, Yatharth shares were last seen trading at a premium of nearly 17 per cent against its issue price of Rs 300 (higher end).
Also read: Hot stocks on July 26, 2023: Delta Corp, Suzlon Energy, Tata Motors, Adani Green Energy and more
The initial public offering (IPO) of Yatharth Hospital and Trauma Care Services saw a decent demand on the first day (Day 1) bidding, driven by strong interest in non-institutional investor (NII) and retail categories. The three-day IPO would conclude on Friday, July 28. The hospital chain has set Rs 285-300 as the price band, with a lot size of 50 equity shares. At 3:24 pm today, the issue was booked 1.08 times. Yatharth's IPO received 1,78,44,450 bids compared to the issue size of 1,65,17,823 shares, as per BSE data.
On Day 1, the portions reserved for NIIs and retail investors saw the maximum push and was subscribed 1.77 times and 1.25 times, respectively. The quota for qualified institutional buyers (QIBs) fetched 26 per cent of the total bids.
A total of 50 per cent of the issue is reserved for the QIBs. The NII quota is set at 15 per cent. The remaining 35 per cent shares would be allocated to retail investors.
Yatharth is aiming to raise about Rs 687 crore via primary markets, which includes a sale of fresh equity shares worth Rs 490 crore and an offer for sale (OFS) of around 65.52 lakh equity shares by its promoters including Vimla Tyagi, Prem Narayan Tyagi and Neena Tyagi.
Ahead of the IPO, Yatharth allocated 68,65,506 equity shares to 18 anchor investors at a price of Rs 300 apiece to raise Rs 205.96 crore. They included marquee investors included ICICI Prudential, Nippon Life, HDFC Mutual Fund, Aditya Birla Sun Life, Bandhan Mutual Fund, HSBC Global Investment, Troo Capital, Carnelian Capital, BNP Paribas, Goldman Sachs and Jupiter India Fund among others.
The net proceeds from the issue would be used for repayment or prepayment of borrowings availed by the company and its subsidiaries, namely AKS Medical & Research Centre and Ramraja Multispeciality Hospital & Trauma Centre. It would also be used for funding capital expenditure, inorganic growth initiatives and general corporate purposes.
Incorporated in 2008, Yatharth operates four-super specialty hospitals located in Noida, Greater Noida and Noida Extension. Also, the company has recently acquired a 305-bedded multi-specialty hospital in Orchha, Madhya Pradesh to extend its operations and services.
Intensive Fiscal Services, Ambit and IIFL Securities are the book running lead managers to the issue, while Link Intime India has been appointed as the registrar. The stock would be listed on both BSE and NSE, with August 7 as the tentative date of listing.
Brokerage firms are mostly positive on the issue and have suggested subscribing for the issue. However, select brokerage firms are skeptical over the issue on the back of high fixed cost, debt-heavy operational expenses, dependency on select special facilities and government deals compressing the margins.
Grey market price (GMP)
In the grey market, Yatharth shares were last seen trading at a premium of nearly 17 per cent against its issue price of Rs 300 (higher end).
Also read: Hot stocks on July 26, 2023: Delta Corp, Suzlon Energy, Tata Motors, Adani Green Energy and more