Shares of Yatharth Hospital Debut At A Moderate 2% Premium Over IPO Price
On Monday, shares of Yatharth Hospital were offered on the stock exchanges with merely a 2% premium. On the NSE, the stock started at Rs 306.1 per share, a premium of Rs 6.1 or 2.03% over the issue price of Rs 300. It made its debut at Rs 304 on the BSE, up 1.33 percent.
The company’s shares were selling at a premium of Rs 75 prior to the IPO.
Investors responded favorably to Yatharth Hospital’s first public offering, with a total subscription of 36.1 times at closing.
The Noida-based business sold its first investment to raise around Rs 687 crore. The quota reserved for qualified institutional buyers (QIBs) was subscribed 86.37 times, 38.62 times for non-institutional investors (NIIs), and 8.66 times for retail investors.
Yatharth medical, a medical network founded in 2008, operates four super speciality hospitals in Noida, Greater Noida, and Noida Extension. To expand its operations and services, the business recently purchased a 305-bed multi-specialty hospital in Orchha, Madhya Pradesh.
The firm intends to utilize the money raised from the public offering for debt repayment, supporting capital projects, inorganic growth plans, and other general business needs.
Analysts claim that the dismal listing of Yatharth Hospital is a result of the continuous market turbulence and uncertainty.
“Yatharth Hospital’s IPO listing on the stock exchanges today at Rs 306 per share, a premium of only about 2% over the upper end of the price band of Rs 300, is well below expectations, given the strong subscription rate that the IPO received earlier,” says Anubhuti Mishra, Equity Research Analyst at Swastika Investmart Ltd. However, it’s possible that investors’ modest reaction might be attributed to the present market uncertainties.
“After being listed, the IPO is now trading at Rs 333 per share, a premium of almost 10% over the initial offering price. At this price, investors aiming for quick gains may start to make money. While holding the shares with a stop loss at about the issue price, ambitious investors who are confident in the company’s long-term prospects may do so, she noted.
The stock was up 32.20 points, or 10.73%, to Rs 332.30 at 1:30 pm on the National Stock Exchange (NSE).
The issue’s book-running lead managers are IIFL Securities, Intensive Fiscal Services, and Ambit. The registrant used was Link Intime India.
