Yatharth Hospital Raises INR 120 Crore Through Pre-IPO Placement

Republished By Plato

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Last updated on July 10, 2023

Yatharth Hospital & Trauma Care Services Limited – the Noida-based healthcare provider – has undertaken a pre-IPO placement of 40 lakh equity shares for cash at a price of INR 300 per equity share (including a share premium of INR 290 per equity share) aggregating to INR 120 crore. The pre-IPO placement was approved by the board at its meeting held on 5 July 2023 and by the shareholders at their extra ordinary general meeting held on 5 July 2023.

Yatharth Hospital pre-IPO participants in the placement included several leading names including Plutus Wealth Management, Think India Opportunities Master Fund, Vikas Vijaykumar Khemani, Rosy Blue Diamonds, and Viraj Russell Mehta.

Out of the total , 20 lakh shares amounting to INR 60 crore were issued to Plutus Wealth Management LLP, while 10 lakh shares amounting to INR 30 crore have been allotted to Think India Opportunities Master Fund LP. Vikas Vijaykumar Khemani, Rosy Blue Diamonds, and Viraj Russell Mehta have been allotted 333,333 equity shares amounting to INR 10 crore, 433,334 equity shares amounting to INR 13 crore, and 233,333 equity shares amounting to INR 7 crore, respectively.

The company filed DRHP with SEBI earlier last year in March for its proposed IPO and the regulator gave its clearance to the offer in August 2022. Following the successful Yatharth Hospital pre-IPO placement, the size of the fresh issue of up to INR 610 crore has been now reduced by INR 120 crore. Accordingly, the revised size of the fresh issue is now up to INR 490 crore. The upcoming IPO also involves an Offer for Sale (OFS) remains up to 6,551,690 equity shares by “Promoter Group Selling Shareholder”.

The offer for sale up to 6,551,690 equity shares comprises of up to 3,743,000 equity shares by Vimla Tyagi; up to 2,021,200 equity shares by Prem Narayan Tyagi and up to 787,490 equity shares by Neena Tyagi.

Intensive Fiscal Services Private Limited, Ambit Private Limited and IIFL Securities Limited are the Book Running Lead Managers to the Issue.

Yatharth Hospital IPO – Underpinning Strong Growth

The company has posted strong revenue and profit growth in recent years. According to the DRHP accessed by IPO Central, Yatharth Hospital managed to double its revenue from INR 101.83 crore in FY 2019 to INR 228.67 crore in FY 2021 and to INR 210.97 crore in the six months of FY 2022.

This performance translated to robust bottom-line as well as profits grew from INR 3.98 crore in FY 2019 to INR 19.59 crore in FY 2021 and to INR 26.98 crore in the six months of FY 2022.