Yatharth Hospital & Trauma Care Services IPO To Open On July 26th

Yatharth Hospital and Trauma Care Services have proposed to open its initial public offering of equity shares of face value Rs 10 each on Wednesday, July 26, 2023. The initial public offering comprises of a fresh issue of equity shares aggregating up to Rs 490 crore and an offer for sale of up to 6,551,690 equity shares by selling shareholders. The anchor investor bidding is scheduled to be on Tuesday, July 25, 2023.  The offer will open on Wednesday, July 26, 2023, for subscription and will close on Friday, July 28, 2023.

The Price Band of the Offer has been fixed at Rs 285 to Rs 300 per share. Bids can be made for a minimum of 50 equity shares and in multiples of 50 equity shares thereafter.

The company said that it will utilise the funds raised through net proceeds towards repayment of certain debt availed by the company up to Rs 100 crore while also repaying certain borrowings availed by the company’s subsidiaries, namely, AKS Medical & Research Centre and Ramraja Multispeciality Hospital & Trauma Centre up to Rs 145 crores.

The company also said that the proceeds will also fund the capital expenditure expenses of the company for two hospitals, namely, Noida Hospital and Greater Noida Hospital up to Rs 25.6 crore while also funding capital expenditure expenses of the company’s subsidiaries, AKS and Ramraja, for respective hospital operated by them up to Rs 106.9 crore.

The company will also fund inorganic growth initiatives through acquisitions and other strategic initiatives up to Rs 65 crore, and the balance amount towards general corporate purposes.

The Offer for Sale comprises of to 3,743,000 Equity Shares of Vimla Tyagi, up to 2,021,200 Equity Shares of Prem Narayan Tyagi and up to 787,490 Equity Shares of Neena Tyagi.

The equity shares are proposed to be listed on both the stock exchanges; BSE and the National Stock Exchange. For the purposes of the offer, BSE is the designated stock exchange, the company stated. 

The company stated that in the offer not more than 50 per cent of the offer shall be available for allocation to Qualified Institutional Buyers (QIBs), provided that the company and the selling shareholders may allocate up to 60 per cent of the QIB Portion to Anchor Investors on a discretionary basis.

In the event of under-subscription or non-allocation in the Anchor Investor Portion, the remaining Equity Shares shall be added to the QIB Portion.

The company said that 5 per cent of the Net QIB Portion shall be available for allocation on a proportionate basis only to Mutual Funds, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIBs (other than Anchor Investors), including Mutual Funds.

Further, not less than 15 per cent of the Offer shall be available for allocation to Non-Institutional Bidders, of which one-third of the will be available for allocation to bidders with an application size of more than Rs 2,00,000 and up to ₹ 10,00,000 and two-thirds of the non-institutional portion will be available for allocation to bidders with an application size of more than Rs 10,00,000. 

The company's statement said that not less than 35 per cent of the Offer shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price.