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Yatharth Hospital IPO Analysis

What does the company do?

Manufactures drones.

Kidding, obviously runs hospitals. It operates super speciality hospitals in NCR.

About the issue

Application window closes tomorrow, 28th July 2023
Issue size - 687 Crores
Fresh issue - 490 Crores
Price band - INR 285-300

Lot size

Retail - 50 shares (15,000)
Small HNI - 700 shares (2,10,000)
Big HNI - 3350 shares (10,05,000)

Objects of the issue

- Repayment/ prepayment, in full or part, of certain borrowings availed by the Company & their subsidiaries.
- Funding capital expenditure expenses of their Company for two hospitals- Noida Hospital and Greater Noida Hospital and capital expenditure expenses of Subsidiaries, AKS and Ramraja.
- Funding inorganic growth initiatives through acquisitions and other strategic initiatives.
- General corporate purposes.

Quotas

Retail quota - 35%
sHNI - 5%
bHNI - 10%

Probability of allotment would be highest for bHNI, followed by retail and last sHNI

Financials

Between FY21 to FY23, revenue has grown by 32% p.a while net profit has grown by 50% p.a . These are impressive growth numbers

Demand in the grey market

Demand in the grey market is good, but not mind blowing like Utkarsh and Netweb. The IPO is trading at a GMP of 17-20% as of today.

Conclusion

The IPO is not bad, but it is not great. Allotment probability would be better than the last 3 IPOs. Would be close to Senco Gold's probability.

If the market trend turns down, the IPO can potentially have a flattish listing, if the market trend stays, it is likely to list at an okok premium.

I would be applying for the IPO but not aggressively. If one is fine with a small risk, they may apply for the IPO.

Final subscription numbers of Yatharth Hospital

Probability of allotment

Retail - 1/8.3
Big HNI - 1/8
Small HNI - 1/31

Latest GMP has risen to over 20%

Allotment for Yatharth Hospitals will be out on Wednesday

After that 2 more IPOs open next week

Unless we see a bear market, expect at least 20 more IPOs this year

Yatharth Hospitals latest GMP ~28%

SBFC Finance latest GMP - 67% (IPO opens next Thursday)

Allotment for Yatharth Hospitals will be out tonight on Linkintime

https://www.linkintime.co.in/IPO/public-issues.html

The next good IPO opens tomorrow and closes on Monday

Will share an analysis by Sunday, as the market trend would be important by then.

SBFC Finance IPO analysis

SBFC Finance is an NBFC involved in business financing and loan against gold. It is one of the fastest growing NBFCs in India.

Details of the issue

Last date to apply: 7th August 2023
Ipo size - 1025 crores
Fresh issue - 600 crores
Offer for sale - 425 crores

Issue price : 54 to 57 per share

Lot sizes and quota

Retail - 35% - 260 shares lot size
Big HNI - 10% - 17680 shares lot size
Small HNI - 5% - 3640 shares lot size

Financials

PAT has grown at a handsome pace from 35 crores in 2020 to 107 crores in 9M2023

PE ratio is on the higher side though. At over 70x earnings (but let Warren Buffet worry about that)

Demand in the grey market

The latest GMP today was 70%. This indicates very strong demand for the IPO in the grey market.

Moreover the size of the IPO is above average. Nearly twice the average IPO size of 500 crores, which means probability of allotment will be better (not amazing but better)

Verdict: I would be aggressively applying for the IPO

In other updates

Yatharth Hospitals lists tomorrow. Latest GMP was 25%.

Concord Biotech IPO closes on Tuesday. Will share a review of that tomorrow.

Latest subscription numbers