Yatharth Hospital IPO opens for subscription. Should you bid?
The issue has received a thumbs-up from analysts, with most recommending a «subscribe» given strong financials and growth potential in Northern India. «On FY23 financials, the IPO is valued at 39.2x P/E, 20.9x EV/EBITDA and 5.4x EV/sales,» Reliance Securities said while assigning a 'subscribe' rating. Yatharth Hospital & Trauma Care Services is a private hospital which provides healthcare services and is based in the northern region of India.
It has four operational hospitals and 1,405 beds and as of March 23, with 609 doctors engaged on its panel for servicing the patients. During FY21-FY23, the company's PAT margin grew from 8.6% to 12.6% and its ROE improved from 25.1% to 36%. «The institution boasts a diverse range of specialities and payer mix, demonstrating a track record of consistent and stable operating and financial performance with sustained growth.
Also, it is available at a reasonable valuation compared to its peers,» Marwadi Financial Services said. The IPO comprises a fresh issue of up to Rs 490 crore and an offer for sale (OFS) of Rs 65.51 lakh shares. Under the OFS, Vimla Tyagi will offload 37.43 lakh shares, Prem Narayan Tyagi will sell 20.21 lakh shares and Neena Tyagi will give up 7.87 lakh shares.
The company is offering its shares in the range of Rs 285-300 per share and investors can bid for 50 shares in one lot and in multiples thereafter. About 50% of the offer is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NII) and the rest 35% for retail investors. «We believe active collaborations with leading institutions and experts in different medical areas to improve their diagnostic and treatment capabilities and expansion in other geographical areas through
. Read more on economictimes.indiatimes.com
