Yatharth Hospital & Trauma Care Services IPO GMP (Grey Market Premium)

In the above case, the GMP trend shows that the grey market premium has opened at around ₹65, and is up by ₹75. Of course, we have to await for the actual subscription numbers to flow in when the issue opens for subscription on 26th July 2023, as that would have a very significant impact on the GMP. In the past, stocks which got oversubscribed in the IPO also saw a very robust positive shift in the grey market pricing. Otherwise, 2 days may be too short to decipher a GMP trend. For a start, Yatharth Hospital & Trauma Care Services Ltd has shown good traction in the grey market.

If you consider the upper end of the price band of Yatharth Hospital & Trauma Care Services IPO at ₹300 as the indicative price, then the likely listing price is being signalled at around ₹365 per share as of the GMP indicator on 21st July 2023. One data point to track will be the subscription update on the stock as that would chart the GMP course from here. As mentioned, the institutional QIB subscription is a key trigger for the GMP pricing.

The GMP of ₹65 on a likely upper band pricing of ₹300 indicates a listing premium of a healthy 21.67% for Yatharth Hospital & Trauma Care Services Ltd over the listing price. That pre-supposes a listing price of approximately ₹365 per share, when Yatharth Hospital & Trauma Care Services Ltd lists on 07th August 2023. Of course, these are approximations, so you must keep a margin of safety. However, that would depend on the GMP sustaining over the next few days after the issue opens.

GMP (grey market price) is an important indicator, albeit informal, of likely listing price. One cannot take this price at face value However, the GMP tends to be quite dynamic and changes direction with the flow of news and events. Investors must note here that this is just an informal indication and has no official acceptance. The best thing one can do with the GMP is to observe the trend closely as that gives the best hints on listing status. Focus on the time series trend than on numbers.

Brief background on Yatharth Hospital & Trauma Care Services Ltd

Yatharth Hospital & Trauma Care Services Ltd was incorporated in 2008 as a multi-care hospital chain. It is today ranked among the top 10 largest private sector hospital in the Delhi / NCR region. Yatharth Hospital & Trauma Care Services Ltd currently operates 3 super specialty hospitals situated at Noida, Greater Noida, and Noida Extension. The largest among these is the Noida Extension Hospital with capacity of 450 beds and offering high-end medical and operative care. Yatharth Hospital & Trauma Care Services Ltd also recently acquired a 305-bedded multi-specialty hospital in Orchha, Madhya Pradesh; once again among the largest hospitals in the particular location.

Read What you must know about Yatharth Hospital IPO

Yatharth Hospital & Trauma Care Services Ltd is supported by a team of over 370 doctors across various disciplines. Between them, the healthcare ecosystem of Yatharth Hospital & Trauma Care Services Ltd  offers healthcare services across specialties and super specialties. Some of the super specialty centres of excellence include Centre of Medicine, Centre of General Surgery, Centre of Gastroenterology, Centre of Cardiology and Centre of Nephrology & Urology. In addition, the Yatharth Hospital & Trauma Care Services Ltd also specializes in Pulmonology, Neurosciences, Paediatrics, Gynaecology, Orthopaedics and Rheumatology. Healthcare has been one of the major focus areas for institutional and private equity investors too in the last few years.

The issue is being jointly lead managed by IIFL Securities, Ambit Private Ltd and Intensive Fiscal Services Private Ltd. Link Intime India Private Ltd will be the registrars to the issue. The company will use the fresh funds to repay borrowings of the parent, repay / prepay loans of its subsidiaries, funding capex of parent & subsidiaries as well as for inorganic growth.