Yatharth Hospital Launches QIP with ₹10 Face Value for Growth

Yatharth Hospital and Trauma Care Services Ltd has launched its Qualified Institutional Placement (QIP), offering equity shares to raise between ₹450 crore and ₹700 crore. The issue, approved on December 18, 2024, sets the floor price at ₹626.18 per share, calculated under SEBI regulations. The company plans to issue up to 1.17 crore shares, with the final price determined through consultation with book-running lead managers.

Issue Price & Discounts

The indicative issue price is ₹595 per share, representing a 4.98% discount to the floor price and a 3.09% discount to the current market price of ₹628.10. As per regulatory approvals, the company can offer a maximum discount of 5% on the floor price. 

Objective of the QIP

The primary goals of this QIP include:

• Repayment or pre-payment of outstanding borrowings.
• Funding acquisitions for hospitals in Model Town, Delhi, and Faridabad.
• Purchasing medical equipment.
• General corporate purposes.

Performance Highlights

Yatharth Hospital operates five super-speciality hospitals across North India. The company reported a consolidated net profit of ₹31 crore in Q2 FY25, a 12.31% increase compared to the previous year, with revenue from operations rising 27.14% to ₹217.80 crore. At 11:50 AM, Yatharth Hospital & Trauma Care Services Ltd shares traded at ₹624.95, up ₹10.75 (1.95%) today and 67.05% year-to-date.

Growth Projections

The hospital expects to reach 65% occupancy by FY27, with its Noida and Greater Noida facilities targeting 70-75% occupancy within 2-2.5 years. Additionally, the recently acquired Faridabad facility is projected to become profitable within 15 months. Yatharth Hospital’s average revenue per occupied bed (ARPOB) has been growing at 10% YoY and quarter-on-quarter.

Regulatory & Trading Updates

The Securities Issue Committee, authorized by the board and a special resolution passed in an extraordinary general meeting on December 6, initiated the QIP process. The trading window for designated persons remains closed until 48 hours after the issue price is finalized.

The issuance terms include a lock-in period of 45 days for promoters and 90 days for the promoter group.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.