Yatharth Hospital shares listed at a premium of just 2 per cent on the bourses on Monday. The stock opened at a premium of Rs 6.1 or 2.03 per cent on the NSE at Rs 306.1 per share as against the issue price of Rs 300. On the BSE, it debuted at Rs 304, up 1.33 per cent.
Ahead of the listing, the company’s shares were commanding a premium of Rs 75 in the grey market.
The IPO of Yatharth Hospital received a solid response from investors, with an overall subscription of 36.1 times at close.
The Noida-based company raised around Rs 687 crore from its initial stake sale. The portion booked for qualified institutional buyers (QIBs) was subscribed 86.37 times, while non-institutional investors (NIIs) were subscribed 38.62 times, and the retail investor’s quota was booked 8.66 times.
Established in 2008, Yatharth Hospital is a hospital chain that runs four super specialty hospitals located in Noida, Greater Noida, and Noida Extension. Recently, the company acquired a 305-bed multi-specialty hospital in Orchha, Madhya Pradesh, to extend its operations and services.
The company aims to use the proceeds from the public issue for repayment of debt, funding capital expenditures, inorganic growth initiatives, and other general corporate purposes.
According to analysts, the ongoing volatility and market uncertainty are the reasons for the weak listing of Yatharth Hospital.
Anubhuti Mishra, Equity Research Analyst at Swastika Investmart Ltd, "Yatharth Hospital's IPO listing on the stock exchanges today at Rs 306 per share, a premium of only around 2 per cent over the upper end of the price band of Rs 300 is well below expectations, given the strong subscription rate that the IPO received earlier. However, the current market uncertainty is likely to be blamed for the muted response from investors".
"Post listing, the IPO is trading at Rs 333 per share, a premium of around 10 per cent over the issue price. Investors who are looking for short-term gains may book profits at this level. However, aggressive investors who believe in the long-term prospects of the company may hold the stock with a stop loss at around the issue price," she added.
At 1:30 pm, the stock was trading 32.20 points or 10.73 per cent higher at Rs 332.30 on the National Stock Exchange (NSE).
Intensive Fiscal Services, Ambit, and IIFL Securities are the book running lead managers to the issue. Link Intime India was the registrar.