Yatharth-Hospital- & Trauma-Care- Services-Limited-elite

Yatharth Hospital & Trauma Care Services Limited IPO Company Profile:

Yatharth Hospital & Trauma Care Services Limited is among the top 10 largest private hospitals in the National Capital Region of Delhi (“Delhi NCR”) in terms of the number of beds in Fiscal 2021. As of the date of this Draft Red Herring Prospectus, the company operates three super specialty hospitals in Delhi NCR, i.e., at Noida, Greater Noida, and Noida Extension, Uttar Pradesh. Yatharth Hospital & Trauma Care Services Limited’s Noida Extension hospital with 450 beds is one of the largest hospitals in the Noida Extension, Uttar Pradesh region. The company has recently acquired a 305-bedded multi-specialty hospital in Orchha, Madhya Pradesh near Jhansi, Uttar Pradesh (“Jhansi-Orchha”), which is one of the largest hospitals in Jhansi-Orchha-Gwalior region. With this recent acquisition, the total bed capacity of the hospitals increased to 1,405 beds as of the date of this Draft Red Herring Prospectus. In addition, the critical care program of the company comprises 318 critical care beds, as of January 31, 2022. All of the hospitals based in Delhi NCR are accredited by the NABH (National Accreditation Board for Hospitals & Healthcare Providers).

Yatharth Hospital & Trauma Care Services Limited engaged 370 doctors and offers healthcare services across several specialties and super specialties, as of January 31, 2022. For better and more focussed patient care, the company has carved out the following super specialty as Centres of Excellence (“COE”):


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    ·  Centre of Medicine ·  Centre of General Surgery · Centre of Gastroenterology
    ·  Centre of Cardiology ·  Centre of Paediatrics ·  Centre of Pulmonology
    ·  Centre of Gynaecology ·   Centre of Neurosciences ·   Centre of Nephrology & Urology
    ·  Centre of Orthopaedics & Spine & Rheumatology

     

    Yatharth Hospital & Trauma Care Services Limited IPO Details:

    IPO Open Date Not Available
    IPO Close Date Not Available
    Listing Date Not Available
    Face Value ₹10 per share
    Price Not Available
    Lot Size Not Available
    Issue Size Not Available
    Fresh Issue [●] shares

    (aggregating up to ₹610.00 Cr)

    Offer for Sale 6,551,690 shares

    (aggregating up to ₹[●]Cr)

    Issue Type Book Built Issue IPO
    Listing At BSE, NSE
    QIB Shares Offered Not more than 50% of the Offer
    NII (HNI) Shares Offered Not less than 15% of the Offer
    Retail Shares Offered Not less than 35% of the Offer
    Promoters Ajay Kumar Tyagi and Kapil Kumar

    Yatharth Hospital & Trauma Care Services Limited IPO Financial Analysis:

    Particulars 6M FY-22(in cr.) FY-21(in cr.) FY-20(in cr.) FY-19(in cr.) CAGR (FY-19 to FY-21)
    Revenue from sale 210.97 228.67 146.04 101.83 31.0%
    Other Income 0.86 0.52 0.14 0.24  
    Cost Of Goods Sold 43.34 46.32 26.73 19.49  
    Employee Cost 38.06 46.69 26.81 20.47
    Other expenses 65.82 68.66 54.92 42.43
    EBITDA 64.62 67.53 37.71 19.69 50.8%
    EBITDA margin% 30.63% 29.53% 25.82% 19.33%  
    Depreciation 12.59 20.56 21.29 8.38
    Interest 10.91 18.84 18.91 6.29
    PBT 41.12 28.12 -2.49 5.02 77.6%
    Total tax 14.15 8.54 -0.44 1.04
    PAT 26.98 19.59 -2.05 3.98 70.1%
    PAT margin% 12.79% 8.57% -1.41% 3.91%  
    Dep./revenue% 5.97% 8.99% 14.58% 8.23%
    Int./revenue% 5.17% 8.24% 12.95% 6.18%

    Yatharth Hospital & Trauma Care Services Limited IPO Key financial and operating metrics:

    Particulars 6M FY-22(in cr.) FY-21(in cr.) FY-20(in cr.) FY-19(in cr.) CAGR (FY-19 to FY-21)
    Total bed capacity 1100 1100 1100 650 19.2%
    Bed Occupancy Rate (%) 52.58% 41.63% 35.76% 30.75% 10.6%
    Average Revenue per Occupied Bed (“ARPOB”) (₹) 23450.85 21286.74 22277.46 23381.49 -3.1%
    Average Length of Stay (“ALOS”) 6.16 5.03 3.45 3.55 12.3%
    In-patient Revenue (₹ crore) 183.41 206.01 114.70 81.23 36.4%
    Out-patient Revenue (₹ crore) 27.56 22.66 31.34 20.61 3.2%
    Revenue from operations (₹ crore) 210.97 228.67 146.04 101.83 31.0%

    Pre-Offer shareholding of the Selling Shareholders:

    S. No. Name of the Selling Shareholder No. of Equity Shares

    held

    Percentage of the pre-Offer paid

    Up equity share capital (%)

    1. Vimla Tyagi 3,743,000 5.71%
    2. Prem Narayan Tyagi 2,021,200 3.09%
    3. Neena Tyagi 7,019,600 10.71%
    Total   12,783,800 19.51%
    Other Shareholders (Promoters & Promoter Group)
    6. Ajay Kumar Tyagi 27,021,600 41.24%
    7. Kapil Kumar 12,164,400 18.57%
    8. Manju Tyagi 11,524,200 17.59%
    Total   63,494,000 96.91%

    Yatharth Hospital & Trauma Care Services Limited IPO Offer for Sale Details:

    S. No. Name of the Selling Shareholder Number of Equity Shares

    being offered in the Offer for Sale (Up to)

    1. Vimla Tyagi 3,743,000 Equity Shares
    2. Prem Narayan Tyagi 2,021,200 Equity Shares
    3. Neena Tyagi  787,490 Equity Shares

    Yatharth Hospital & Trauma Care Services Limited IPO Strengths:

    • Yatharth Hospital & Trauma Care Services Limited is among the top 10 largest private hospitals in Delhi NCR in terms of the number of beds in Fiscal 2021. The company also had the highest two-year CAGR in revenue growth between Fiscal 2019 and Fiscal 2021 and the highest operating margin in Fiscal 2021 among Key Hospitals in India. The company’s use of compassionate patient care, technology, and experienced medical practitioners enable it to offer its patients comprehensive patient care services with individualized attention.

    • Yatharth Hospital & Trauma Care Services Limited’s hospitals are equipped with machines and devices with sophisticated technology. The hospitals are designed to assist practitioners in providing timely, efficient, and quality healthcare. All the company’s hospitals in the Delhi NCR region are accredited by the NABH. Yatharth Hospital & Trauma Care Services Limited also has a well-equipped laboratory in all three operating hospitals for diagnostic services in haematology, biochemistry, microbiology, molecular biology, and histopathology.

    • Yatharth Hospital & Trauma Care Services Limited’s success can be partially attributed to its highly qualified medical professionals and other staff, and its ability to attract such quality professionals and, staff. As at January 31, 2022, the company’s hospitals engaged 2,530 individuals, which included 370 doctors, of which 207 were consultant doctors, 110 were resident medical officers, and 53 were visiting doctors. Yatharth Hospital & Trauma Care Services Limited’s approach of direct engagement with doctors, nursing staff, and other para-medic staff has helped it attract experienced people.

    • Yatharth Hospital & Trauma Care Services Limited has demonstrated stable operating and financial performance and growth over the past three fiscals. The growth in revenue and profitability can be credited to the strong operational efficiency, that the company achieves by streamlining its clinical and administrative functions, continually introducing process innovations, and ensuring that it maintains economies of scale.

    Yatharth Hospital & Trauma Care Services Limited IPO Risk Factors:

    • Yatharth Hospital & Trauma Care Services Limited is highly dependent on doctors, nurses, and other healthcare professionals and the business and financial performance of the company will be impacted significantly if it is unable to attract, retain or train such professionals.

    • Yatharth Hospital & Trauma Care Services Limited’s operations are concentrated in the Delhi NCR region. The company is also significantly dependent on certain specialties for a majority of its revenues. Any impact on the revenues from these hospitals or earnings from the top specialties could materially affect the business, financial condition, results of operations, and cash flows of the company.

    • Yatharth Hospital & Trauma Care Services Limited’s business depends on the strength of its brand and reputation. Failure to maintain and enhance its brand and reputation, and any negative publicity and allegations in the media against it, may materially and adversely affect the level of market recognition of, and trust in, the services, which could result in a material adverse impact on the business, financial condition, results of operations, and prospects of the company.

    Objects of the Offer:

    Yatharth Hospital & Trauma Care Services Limited proposes to utilize the Net Proceeds of the Fresh Issue towards funding the following objects:

    • Repayment/ prepayment, in full or part, of certain borrowings availed by the Company.
    • Repayment/ prepayment, in full or part, of certain borrowings availed by the Subsidiaries, namely, AKS Medical & Research Centre Private Limited (“AKS”) and Ramraja Multispeciality Hospital & Trauma Centre Private Limited (“Ramraja”).
    • Funding capital expenditure expenses of the Company for two hospitals, namely, Noida Hospital and Greater Noida Hospital
    • Funding capital expenditure expenses of the Subsidiaries, AKS and Ramraja, for respective hospitals operated by them.
    • Funding inorganic growth initiatives through acquisitions and other strategic initiatives.
    • General corporate purposes

    Yatharth Hospital & Trauma Care Services Limited IPO Prospectus:

    Registrar to the offer:

    Link Intime India Private Limited

    Contact Person: Shanti Gopalkrishnan

    E-mail: yatharth.ipo@linkintime.co.in

    Tel: +9122 4918 6200