Yatharth Hospital IPO : Yatharth Hospital Limited Ltd is coming up with its Initial Public Offering. The IPO will open for subscription on July 26, 2023, and close on July 28, 2023.
In this article, we will look at the Yatharth Hospital IPO Review 2023 and analyze its strengths and weaknesses. Keep reading to find out!
Table of Contents
Yatharth Hospital IPO Review – About The Company
Yatharth Hospital and Trauma Care Services Limited, founded in 2008, is a multi-care hospital network. In terms of the number of beds, two of its hospitals, namely, Noida Extension Hospital and Greater Noida are the 8th and 10th largest private hospitals in Delhi.
The company has three operational super speciality hospitals located in Delhi NCR and Uttar Pradesh. Additionally, the company has acquired a 305-bedded multi-speciality hospital in Orchha, Madhya Pradesh near Jhansi which commenced operations in FY22. This makes it one of the largest hospitals in the JhansiOrchha-Gwalior region in terms of the number of beds.
The services provided by all its hospitals located in n Noida, Greater Noida and Noida Extension, in Uttar Pradesh have been rated “5 Star” by Infomerics Analytics and Research Private Limited in 2022.
As of FY23, the company has engaged 609 doctors and offers healthcare services across several specialities and super specialities. For more focused patient care, the company has segmented the e following super speciality as Centres of Excellence:
Services the company:
The services provided by the hospital include Multi-speciality covering cardiology, orthopaedics, neurology, renal sciences, oncology, trauma and critical care, laparoscopic and bariatric surgery, cosmetic and reconstructive surgery, rheumatology, dermatology, ophthalmology, etc.
Yatharth Hospital IPO – About The Industry
The healthcare industry is one of the largest industries in India, both in terms of employment and revenue. With the things like stabilisation of regular treatments, surgeries and OPD amid minimization of disruption due to the pandemic and expansion of ARPOB for the sector, the industry has estimated to reach ₹ 5.6 trillion in value during FY23.
According to CRISIL forecasts, the Indian healthcare delivery industry will grow at a strong 11.3% CAGR between FY23 and FY27, reaching 8.6 trillion in Fiscal 2027. Long-term structural considerations, rising affordability, robust fundamentals, and the possibility of the Ayushman Bharat scheme are driving this.
Yatharth Hospital IPO Review – Financial Highlights
If we look at the financials of Yatharth Hospital Ltd we find out that their assets have grown from ₹308.77 crores in March 2021 to ₹ 485.97 crores in March 2023.
Their revenues follow a similar trend, it has doubled from ₹229.19 crores in March 2021 to ₹523.10 crores in March 2023. Their profits have also grown from ₹19.59 crores in March 2021 to ₹65.77 crores in March 2023.
It is important to note that the company’s borrowing has also doubled from ₹186.11 crores In March 2021 to ₹263.78 crores on March 23.
The return ratios of the company show a steady increase over the last three years. The ROE and RoCE of the company for FY23 stood at 35.95% and 26.10% respectively.
Financial Metrics of the Company
(Source: RHP of the company)
Key Players in the Indian Pharmaceutical Market
The table image will give you a list of the company’s listed peers along with its revenue and other details:
Strengths of the Company
1) The company’s hospitals, namely, Noida Extension Hospital and Greater Noida are the 8th and 10th largest private hospitals in Delhi NCR, respectively, as of FY23.
Given the company’s market position and growing medical tourism in the Delhi NCR region, it has opportunities to build more hospitals in existing and new markets as well as enhance its local community presence.
2) The company is equipped with high-end machines and devices that assist its practitioners in providing timely, efficient and quality healthcare.
The advanced infrastructure, technology and equipment have improved our operational efficiency and enhanced our patients’ experience.
3) The company’s success can partially be attributed to its qualified medical professionals and other staff, and its ability to attract such quality professionals and staff.
The company offers a variety of engagement models, including a fixed salary, minimum guarantee, and “service fee” models. These structures compensate the doctors for an increase in revenue, ensuring that they are motivated to retain their current patients and draw in new ones.
4) The company is led by a highly qualified and experienced management team who ensure that the company is led by the right mix of professionals from various fields.
Weaknesses of the Company
1) Failure to receive favourable pricing from its suppliers or the restriction to pass on s on any cost increases to its payers can adversely affect the profitability of the business. The company also deals with high fixed costs that can also impact its profitability.
2) The business may get affected if it is unable to secure or renew the approvals, licenses, registrations, and permits we need to run promptly, or even at all.
3) Failure to attract or retain doctors, nurses and other healthcare professionals can significantly impact the operations of the company.
4) The provision of healthcare services has high costs such as manpower costs, high medical equipment costs, and infrastructure maintenance and repair costs. The inability to pass on such costs to the patients may hurt our business,
5) The company derived 33.17% and 22.19% of its revenue from operations in FY21 and FY22 from COVID-19 which we may not continue to earn in future.
Yatharth Hospital IPO – Key IPO Information
| Particulars | Details |
|---|---|
| IPO Size | - |
| Fresh Issue | ₹610.00 Cr |
| Offer for Sale (OFS) | 6,551,690 shares |
| Opening date | 26 July, 2023 |
| Closing date | 28 July, 2023 |
| Face Value | ₹10 per share |
| Price Band | ₹285 to ₹300 per share |
| Lot Size | 50 Shares |
| Minimum Lot Size | 1(50 shares) |
| Maximum Lot Size | 13(650 shares) |
| Listing Date | August 7, 2023 |
Promoters: Ajay Kumar Tyagi And Kapil Kumar
Book Running Lead Manager: Intensive Fiscal Services Private Limited, Ambit Private Limited, IIFL Securities Limited.
Registrar to the Offer: Link Intime India Private Limited
The Objective of the Issue
Following are the Objectives of the issue by the company:
- Complete or partial repayment/prepayment of certain borrowings availed by the company.
- Complete or partial repayment/prepayment of certain borrowings availed by its Subsidiaries, namely, AKS Medical & Research Centre Private Limited (“AKS”) and Ramraja Multispeciality Hospital & Trauma Centre Private Limited (“Ramraja”).
- Funding capital expenditure expenses of Noida Hospital and Greater Noida Hospital which are a part of the company
- Funding capital expenditure expenses of AKS and Ramraja for the respective hospital operated by them.
- Funding different inorganic growth initiatives which include growth through acquisitions.
- General corporate purposes
Yatharth Hospital IPO Review – GMP
Currently we don’t have information on GMP, we shall update the article once we receive the information
In Closing
In this article, we looked at the details of Yatharth Hospital IPO Review 2023. Analysts remain divided on the IPO and its potential gains. This is a good opportunity for investors to look into the company and analyze its strengths and weaknesses. That’s it for this post.
Are you applying for the IPO? Let us know in the comments below.
Written by Aaron Vas
By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks also get updated with stock market news, and make well-informed investment decisions
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