Yatharth Hospital launches QIP to raise ₹700 crore with floor price set at ₹626.18 per share

Yatharth Hospital and Trauma Care Services Ltd on Wednesday (December 18) opened its Qualified Institutional Placement (QIP), setting a floor price of ₹626.18 per share, sources privy to the developments told CNBC-TV18.

The company plans to issue up to 1.17 crore shares through the QIP, sources in the know told CNBC-TV18. The indicative issue size for the offering stands at ₹450 crore, with an option to upsize the issuance to ₹700 crore, sources close to the development said.

The indicative issue price is set at ₹595 per share, representing a 4.98% discount to the floor price and a 3.09% discount to the company’s current market price, said people familiar with the matter. As part of the issuance terms, a lock-in period of 45 days will apply to the promoters, while the promoter group will be subject to a 90-day lock-in.

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In September this year, Yatharth Hospital and Trauma Care Services expects its occupancy rates to reach over 65% by FY27. Two of its hospitals, located in Noida and Greater Noida, are in a growth phase and aim to achieve 70-75% occupancy within the next 2 to 2.5 years, with plans to add more beds.

Yatharth Tyagi, the Whole-Time Director, said in an interview with CNBC TV18 that the hospital in Faridabad, which was recently acquired, is expected to start making a profit within 15 months.

"Another big reason, we feel, for growth for the next two to three years is going to come from our average revenue per occupied bed (ARPOB). Our ARPOB has increased around 10% year on year (YoY) and quarter on quarter (QoQ) also we do expect good growth," said Tyagi.

Also Read: Yatharth Hospital targets 10% average per bed revenue growth for FY25 amid service expansion

Shares of Yatharth Hospital Trauma Care Services Ltd ended at ₹619.90, up by ₹14.50, or 2.40% on the BSE.