About Yatharth Hospital & Trauma Care Services Limited
Established in 2008, Yatharth Hospital and Trauma Care Services Limited is amongst the top 10 largest private hospitals operating around the Delhi NCR region.
The company operates three super specialty hospitals located in Delhi NCR, i.e., at Noida, Greater Noida, and Noida Extension, Uttar Pradesh.
They’ve also acquired a 305-bedded multi-specialty hospital in Orchha, Madhya Pradesh near Jhansi, Uttar Pradesh (“Jhansi-Orchha”) which commenced commercial operations on April 10, 2022, and is one of the largest hospitals in Jhansi-Orchha-Gwalior region in terms of number of beds.
As of March 31, 2023, They have 609 doctors and offer healthcare services across several specialties and super specialties.
Segment-wise contribution to revenue (in %)
|
Segment |
FY23 | FY22 | FY21 |
| Medicine | 31.5 | 50 | 56.3 |
|
0 | 21 | 32.3 |
|
31.5 | 29 | 24 |
| Neurosciences | 9.8 | 7.8 | 8.1 |
| Cardiology | 9.8 | 6.7 | 7.1 |
| General Surgery | 8.5 | 6.5 | 6.6 |
| Orthopedics & spine | 5.7 | 5.8 | 4.7 |
| Nephrology & urology | 9.1 | 6.3 | 6.3 |
| Others | 25 | 16 | 12 |
About the industry:
The Indian healthcare delivery market is to have reached approximately ₹ 5.6 trillion in value by the end of Fiscal 2023, with growth being contributed by stabilization of regular treatments, surgeries, and OPD amid minimization of disruption due to the pandemic and expansion of Average Revenue Per Occupied Bed(ARPOB) for the sector. A potential upside
is also expected from picking up of high realization medical tourism as international travel restrictions are relaxed.
Within the overall healthcare delivery market, the in-patient department is expected to account for nearly 70% (in value terms), while the balance is to be catered by the outpatient department.
Breaching pre-Covid level in Fiscal 2022, CRISIL estimates the Indian healthcare delivery industry to post an 11.3% CAGR between FY 2023 and 2027, driven by long-term structural factors, strong fundamentals, increasing affordability, and the potential of the Ayushman Bharat scheme.
The Rs. 687 crore public offer of Yatharth Hospital and Trauma Care Services Limited comprises a fresh issue of equity shares aggregating up to Rs. 490 crore and an offer for sale of Rs. 197 crore from existing shareholders.
Objects of the issue and proceeds utilization
| Purpose | Proceeds (₹ crores) |
| Funding capital expenditure requirements of the Company subsidiaries, AKS and Ramraja | 107 |
| Repayment of subsidiaries, AKS and Ramraja’s Debt | 145 |
| Capital expenditure of two hospitals | 26 |
| Repayment of certain borrowings of the company | 100 |
| Strategic acquisitions | 65 |
| General corporate purposes | Balance |
Financial Snapshot (₹ crores)
| Financial Year | Total Assets | Total Revenue | Profit After Tax | EBITDA |
| March 31, 2021 | 309 | 229.2 | 19.6 | 67 |
| March 31, 2022 | 426 | 402.6 | 44.2 | 110.8 |
| March 31, 2023 | 486 | 523.1 | 65.8 | 133.8 |
Comparison with some of the listed peers (As on 31st March 2023):
| Company | Operating Income (₹ crores) | PE Ratio | EPS |
| Yatharth Hospital Ltd. | 520 | NA | 10.09 |
| Apollo Hospitals Ltd. | 16612.5 | 89.44 | 56.97 |
| Fortis Healthcare Ltd. | 6297.6 | 40.36 | 7.8 |
| Narayana Health Ltd. | 4525 | 33.29 | 29.85 |
| KIMS | 2198 | 42.44 | 42.03 |
Risk factors to consider:
Risk in fund allocation: Significant portion of Net Proceeds from the Fresh Issue is earmarked for Jhansi-Orchha Hospital, which was non-operational from Fiscal 2020 until Fiscal 2022 and incurred losses in Fiscal 2023.
Dependency on Key Persons: The company is dependent on a number of key personnel, including Promoters and senior management, and the loss of or our inability to attract or retain such persons could adversely affect business.
One-off COVID Income: Company derived 33.17%, and 22.19% of its revenue from operations in Fiscal 2021 and 2022 from COVID-19 which they may not continue to earn in the future.
Competitive sector: The company faces competition from other hospitals, pharmacies, and other healthcare services providers.
Highly regulated industry: Being in a highly regulated industry, and being compliant with applicable safety, health, environmental, and other governmental regulations, any violations of existing regulations may adversely affect our business, financial condition, results of operations, and cash flows.
Regulatory reforms: Regulatory reforms in the healthcare industry and the uncertainty associated with pharmaceutical pricing and other matters could adversely affect the business, results of operations, and cash flows.
Share issued below the offer price in the last 12 months: The company issued 4 million Equity Shares at a price that may be lower than the Offer Price in the last 12 months.
IPO Schedule
| Issue Period | 26th July to 28th July 2023 |
| Deadline for accepting UPI mandate | Until 5 PM on the issue closing day |
| Finalization of Allotment | 2nd August 2023 |
| Initiation of Refunds | 3rd August 2023 |
| Credit of Shares | 4th August 2023 |
| Date of Listing | 7th August 2023 |
| Mandate end date | 12th August 2023 |
| Anchor Investors Lock-In End Date | 27th August 2023 |
How to apply to the Yatharth Hospital & Trauma Care Services Limited IPO?
You can apply for the Yatharth Hospital & Trauma Care Services Limited IPO using any supported UPI app by following two steps:
- Enter your bid on Kite
- Accept the UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.
How to check the allotment status for Yatharth Hospital & Trauma Care Services Limited IPO?
You can check the allotment status for the Yatharth Hospital & Trauma Care Services Limited IPO on the website of the Registrar and Transfer agent. Alternatively, you can also check the allotment status on the NSE website.