Yatharth Hospital Shares Debut On D-St With a Flat Price of Rs. 306.10, Listing At A 2% Premium

On Monday, Yatharth Hospital and Trauma Care Services made its Dalal Street debut with a flat debut, as the stock was listed for Rs 306.10, a premium of 2% over its NSE issue price of Rs 300 per share. Similar to that, the stock was launched on the BSE for Rs 304, a premium of 1%.

According to preliminary market statistics, the IPO drew tremendous interest from all types of investors, getting bids for a total of 59.7 crore shares as opposed to the 1.7 crore shares that were on sale.

The Yatharth Hospital IPO, which included a new issue with a maximum value of Rs. 490 crore and an offer for sale (OFS) with a maximum value of Rs. 197 crore, began accepting bids on July 26 and ended on July 28.

In the IPO, prospective investors may bid for Yatharth Hospital shares in multiples of 50 for a price range of Rs 285–300 per share, or Rs 14,250–15,000 per lot.

According to its red herring prospectus (RHP), Noida-based Yatharth Hospital intends to use the proceeds from the new issue for the repayment or prepayment of certain borrowings, capex, supporting inorganic expansion efforts, and general business reasons.

Shares of Yatharth Hospital were trading at a premium of Rs 70–75 a share, or roughly 25%, a day before they were listed. Since the problem was resolved, the unofficial premium for the firm has been consistent at comparable levels. The listing, however, has gone against the current.

Link Intime India has been selected as the issue’s registrar, while Intensive Fiscal Services, Ambit, and IIFL Securities are the book-running lead managers.

What Steps Should Investors Take Next?

“The ongoing volatility in the secondary market has also impacted fresh listings,” said Anubhuti Mishra of Swastika Investmart Ltd. “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. Given the high subscription rate the preceding IPO obtained, this is much below expectations. The lackluster reaction from investors, however, is probably due to the present state of market uncertainty.

“After being listed, the IPO is now trading at Rs. 333 per share, a 10% premium to 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.