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Yatharth Hospital & Trauma Care Services Ltd has received market regulator Sebi approval for floating initial public offering (IPO). The public offer comprised fresh issue worth ₹610 crore and an offer for sale (OFS) of up to 6,551,690 equity shares. The IPO size will have equity shares having a face value of ₹10 each. After the Sebi approval, the timeline for the IPO along with the price band on equity shares will be announced in due course.
The company received an "observation" letter from Sebi on August 2. Notably, the issuance 'observation' from the market watchdog indicates approval for the IPO.
The company had filed a draft prospectus for the IPO in April this year.
Through the OFS, promoters like Vimla Tyagi will sell 3,743,000 equity shares, while Prem Narayan Tyagi and Neena Tyagi will offload 2,021,200 equity shares and 787,490 equity shares.
50% of the IPO size will be reserved for qualified institutional buyers (QIBs), while 15% of the offered size to be allocated to non-institutional investors (NIIs), and the remaining 35% will be kept for retail individual investors (RII).
Book running lead managers (BRLM) are Intensive Fiscal Services, Ambit, and IIFL Securities.
From the proceeds, the company plans to utilise ₹98.9 crore for repayment of certain borrowings, ₹151.1 crore to be used for repayment of borrowings availed by subsidiaries AKS Medical & Research Centre and Ramraja Multispeciality Hospital & Trauma Centre; nearly ₹22.6 crore to be used for funding CAPEX expenses for two hospitals, namely, Noida Hospital and Greater Noida Hospital; nearly ₹113.5 crore to be utilised for funding CAPEX for subsidiaries AKS and Ramraja, for respective hospitals operated by them; around ₹65 crore to be used for funding inorganic growth initiatives through acquisitions and other strategic initiatives; and general corporate purposes.
The company is among the top 10 largest private hospitals in the National Capital Region of Delhi (“Delhi NCR") in terms of the number of beds in Fiscal 2021. The hospitals have been designed to comply with international quality standards.
Yatharth Hospital, as of filing the draft prospectus, operated e three super specialty hospitals in Delhi NCR, i.e., at Noida, Greater Noida, and Noida Extension, Uttar Pradesh. As of January 31, 2022, the company is engaged 370 doctors and offers healthcare services across several specialties and super specialties.
The company's current growth has been aided by the geographical advantage of being located in Noida, Greater Noida, and Noida Extension, Uttar Pradesh.