Yatharth Hospital & Trauma Care Ltd has fixed a price band of Rs 285-300 per share for its Initial Public Offering (IPO), which will open for subscription on July 26, according to market sources.
The public issue will conclude on July 28 and the bidding for anchor investors will open on July 25, according to the Red Herring Prospectus (RHP). The IPO comprises a fresh issue of equity shares aggregating up to Rs 490 crore and an Offer For Sale (OFS) of up to 65.51 lakh equity shares by the company’s promoter group entities — Vimla Tyagi, Prem Narayan Tyagi and Neena Tyagi. The company intends to utilise the net proceeds for repayment of debt, funding capital expenditure expenses, funding inorganic growth initiatives through acquisition and other strategic initiatives, and for general corporate purposes.
At the upper end of the price band, the public issue is expected to fetch Rs 687 crore and at the lower end, it is expected to fetch Rs 677 crore. Half of the issue size has been reserved for qualified institutional investors, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors. Earlier this month, Yatharth Hospital, which operates and manages private hospitals in Delhi-NCR, raised Rs 120 crore from institutional investors in the pre-IPO round. This led to reduction in the fresh issue size to Rs 490 crore, from Rs 610 crore planned earlier.
Those who participated in the pre-IPO round include Plutus Wealth Management LLP, Think India Opportunities Master Fund LP, and Rosy Blue Diamonds Pvt Ltd. Going by the RHP, Yatharth Hospital operates three super specialty hospitals located in Delhi-NCR. At present, it has a total bed capacity of 1,405 beds which is inclusive of 305 beds of Ramraja Multispeciality Hospital & Trauma Centre Pvt Ltd, an arm of the company. In March 2022, Yatharth Hospital filed preliminary papers with capital markets regulator Sebi to raise funds through an initial share sale. Intensive Fiscal Services Pvt Ltd, Ambit Pvt Ltd, and IIFL Securities Ltd are the book-running lead managers for the IPO.
