Despite an initial issue price of Rs 300, the stock opened on the BSE at Rs 304 and on the NSE at Rs 306. Some of the reasons for the positive listing were the hospital chain’s status as a leading super speciality provider in the Delhi NCR region, its wide range of specialties, and its sustained operational and financial growth.

On July 26-28, 36.16 times the Rs 687 crore public issue was subscribed. Qualified institutional investors purchased 85.10 times their quota, followed by high net worth individuals who bid 37.22 times their allocation, and ordinary investors who bid 8.34 times their quota.

Both a new issuance of Rs 490 crore and an offer for sale by the promoters totaling Rs 196.55 crore made up the public issue.

The 1,405 beds at Yatharth Hospital’s four facilities come from its three Delhi NCR super-specialty hospitals and one multi-specialty facility in Madhya Pradesh.

Increases in inpatient traffic, occupancy rates, and average revenue per occupied room contributed to the company’s 51% CAGR in revenue growth from fiscal years (FY) 21–FY 23. Return on equity went up from 25.06 percent to 35.95 percent, and the PAT margin went up from 8.5 percent to 12.64 percent over the same time period.

The debt-to-equity ratio for Yatharth Hospital in FY23 is now 1.5x. Following the IPO, the debt-equity ratio will be lowered to 0.03x after repayment of Rs 245 crore.

As compared to its competitors, Nirmal Bang’s 20.9x FY23 EV/EBITDA valuation for Yatharth seems acceptable, given the company’s high ROE (36% ) and ROCE (24.4%).

Also Read : How many types of stocks in share market

Long-term structural considerations, rising affordability, and the potential of the Ayushman Bharat scheme are expected to propel India’s healthcare delivery business to a robust 11.3% CAGR between FY23 and FY27, according to CRISIL. Analysts have identified this as a significant boon for Yatharth Hospital.

Moneypoise disclaims any responsibility for the accuracy of any investment advice or opinions posted by its professionals. Moneypoise recommends that customers consult with financial professionals before making any investments.

The post Yatharth Hospital lists at 2% premium to issue price appeared first on Republic Aeon.

On August 10, only TVS Supply Chain Solutions, a provider of services related to supply chain management, will launch an initial public offering on the mainboard. The issue opening is on August 9 and the anchor book will be open for one day. The closing date is August 14.

Omega TC Holdings and Tata Capital Financial Services, among others, are selling a combined 1.42 billion equity shares as part of the public issue, which totals Rs 600 billion. The company has not yet disclosed the expected price range.

The funds raised in the new issue will be used primarily to reduce outstanding debt and for other general corporate purposes.

Srivari Spices and Foods, a small and medium-sized enterprise, will be the second company to go public. Offer bidding will take place from August 7 to 9, and the price range per share will be between Rs 40 and Rs 42.

The spice and flour maker’s public issue would only consist of a new issue of 21.42 lakh equity shares, but it will still aim to raise Rs 9 crore.

The monies will be used for the company’s working capital needs and other general corporate objectives.

Other IPOs concluding this week include SBFC Finance’s Rs 1,025-crore public issue on August 7 and Concord Biotech’s Rs 1,551-crore offer backed by the late Rakesh Jhunjhunwala’s RARE Trusts on August 8.

While the initial public offering (IPO) of Concord Biotech was subscribed 58% on its debut, the public issue by SBFC Finance has so far been subscribed 7.09 times in the last two days.

SME providers Yudiz Solutions, which offers IT solutions and consultation services, and Sangani Hospitals, which offers a wide range of medical specialties in the Indian state of Gujarat, will both close their public issues on August 8. Both have received almost 80% of their target subscriptions.

The post Dalal Street week ahead: Two IPOs, 4 stocks to debut next week appeared first on Republic Aeon.