Day 2 of the Yatharth Hospital IPO: Subscription, GMP, and Other Information; Should You Buy?

On day 2, the IPO for Yatharth Hospital had been subscribed 1.76 times. The Yatharth Hospital Initial Public Offering (IPO) began accepting subscriptions on July 23 and ended on July 28.Yatharth Hospital and Trauma Care Services is seeking to raise approximately Rs 687 crore through primary markets. This will include a sale of new equity shares valued at Rs 490 crore and an offer for sale (OFS) of approximately 65.52 lakh equity shares by its promoters, Vimla Tyagi, Prem Narayan Tyagi, and Neena Tyagi.

Status of subscriptions: On day 2, qualified institutional buyers (QIBs) responded well to Yatharth Hospital IPO after non-institutional investors (NIIS) and retail investors. 

Retail investors’ shares in the Yatharth Hospital IPO were subscribed 2.09 times, NIIs’ shares were subscribed 2.96 times, and QIBs’ shares were subscribed 26%. At 12:21 IST, data from the BSE shows that there have been bids for 2,91,36,500 shares against the 1,65,17,823 shares that are being offered in the Yatharth Hospital IPO.

83,10,636 shares were up for bids for the section for retail investors, however offers for 1,73,83,700 shares were received instead. A total of 1,05,36,350 shares were offered for the non-institutional investors’ category, compared to the 35,61,701 that were really on the market.

Over the 35,61,701 shares that were up for bid for the QIBs category, bids for 12,16,450 shares were received. On both days, there were no subscriptions in the employee section.

Price range for the Yatharth Hospital IPO: The business has set the price range for the planned initial public offering at Rs 285 to Rs 300 per equity share.

Issue Specifics and Yatharth Hospital IPO Size: The Yatharth Hospital IPO includes an offer by the founders Vimla, Prem Narayan, and Neena Tyagi to sell 65.51 lakh equity shares in exchange for a new issue of shares for Rs 490 crore.

Bids may be made for a minimum of 50 equity shares and in multiples of 50 equity shares moving forward for the Yatharth Hospital Initial Public Offering (IPO).

Yatharth Hospital IPO Goal: Yatharth Hospital IPO plans to pay off or advance debt using the net revenues of the offering. Pay for capital costs for the two hospitals owned by the company—Noida Hospital and Greater Noida Hospital—as well as for the hospitals administered by its affiliates AKS and Ramraja. Additionally, use broad business goals and acquisitions to finance inorganic growth projects.

Yatharth Hospital IPO Reservation: Yatharth Hospital IPO has reserved not less than 35% of the offer for retail investors, not less than 15% for non-institutional investors, and not more than 50% of the shares in the public issue for qualified institutional buyers (QIB).

Details about the Yatharth Hospital Initial Public Offering (IPO)’s allocation and listing: On Wednesday, August 2, the basis for allotment of shares will be decided. On Thursday, August 3, the firm will start issuing refunds. On Friday, August 4, the shares will be credited to the demat accounts of allottees. On Monday, August 7, Yatharth Hospital IPO shares are most likely to be listed on the BSE and NSE.

The public offer’s registrar is Link Intime India Private Ltd. In conjunction with the offer, Intensive Fiscal Services Private Ltd, Ambit Private Ltd, and IIFL Securities Ltd. are the three book-running lead managers.

Yatharth Hospital IPO Grey Market Premium (GMP) Today: According to topsharebrokers.com, the Yatharth Hospital IPO GMP today is Rs 50. This suggests that on Wednesday, Yatharth Hospital stock was selling at a premium of Rs 50.

What about investing?

Brokerage companies have recommended subscribing for the issue and have a generally favourable opinion on it. Due to the issue’s high fixed costs, debt-heavy operating expenditures, dependence on certain special facilities, and government agreements that are compressing margins, several brokerage companies are, nevertheless, dubious about it. Here is what several brokerage companies had to say about the situation:

Currently, private spending makes up the majority of healthcare spending in India. The number of physicians and nurses per 10,000 people is lower than normal in North Indian provinces like Haryana, Uttar Pradesh, and Uttarakhand. According to Reliance Securities, this is anticipated to become better over time, favoring the company’s development goals.

“Their recent purchase of the Jhansi-Orchha hospital is intended to continue their geographic expansion and strengthen their position in the local healthcare sector. With a subscribe rating, it said, “They want to concentrate on establishing skills for new, more complex specialities that have great demand in the relevant micro markets and produce a higher ARPOB.