Yatharth Hospital IPO subscribed 30% so far on first day of bidding process

economictimes.indiatimes.com:

Yatharth Hospital was subscribed 30% in the first few hours on the first day of the bidding process on Wednesday. At 12.04 pm, the public issue garnered 30% bids, with its retail portion subscribed 47%. The portion reserved for non-institutional investors (NIIs) received 28% bids so far today.

There were no bids from qualified institutional buyers so far. Ahead of the IPO opening, the company raised nearly Rs 206 crore from 18 anchor investors. 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. 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