Yatharth Hospital and Trauma Care Services made a flat debut at Dalal Street; Should you buy, sell or hold?
Yatharth Hospital and Trauma Care Services made a flat debut at Dalal Street on Monday as the stock was listed at Rs 306.10, a premium of 2 per cent, against its issue price of Rs 300 per share on the National Stock Exchange (NSE). Similarly, the stock was listed at a premium of 1 per cent at Rs 304 on the BSE.
The IPO received a strong response from all categories of investors, receiving bids for a total of 59.7 crore shares as against the 1.7 crore shares on offer, according to provisional exchange data.
The Yatharth Hospital IPO, comprising fresh issuance worth up to Rs 490 crore and an offer for sale (OFS) worth Rs 197 crore, opened for bidding on July 26 and closed on July 28.
Under the IPO, potential investors could bid for Yatharth Hospital shares in a price range of Rs 285-300 apiece in multiples of 50, translating to Rs 14,250-15,000 per lot.
Noida-based Yatharth Hospital plans to utilise the proceeds from the fresh issue towards repayment or prepayment of certain borrowings, capex, funding inorganic growth initiatives and for general corporate purposes, according to its red herring prospectus (RHP).
A day ahead of its listing, shares of Yatharth Hospital were commanding a premium of Rs 70-75 per share, or about 25 per cent, in the grey market. The premium in the unofficial for the company has remained stable around the similar levels, since the closure of the issue. However, the listing has been against the tide.
Intensive Fiscal Services, Ambit, and IIFL Securities are the book-running lead managers to the issue, while Link Intime India has been appointed as the registrar to the issue.
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What Should Investors Do Now?
Anubhuti Mishra, Equity Research Analyst at Swastika Investmart Ltd., said: “The ongoing volatility in the secondary market has also impacted fresh listings, with Yatharth Hospital’s IPO listing on the stock exchanges today at Rs 306 per share, a premium of only around 2% over the upper end of the price band of Rs 300. This is well below expectations, given the strong subscription rate that the IPO received earlier. However, the current market uncertainty is likely to blame for the muted response from investors.”
“Post listing the IPO is trading at Rs 333 per share, a premium of around 10% 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.
