Yatharth Hospital IPO lists at 2.03% premium, but rallies smartly

Yatharth Hospital and Trauma Care Services Ltd had a very moderate listing on 07th August 2023, listing at a small premium of just 2.03%, but rallying sharply post listing. While the closing price on 07th August 2023 was still below the high price of the day, the rally was quite sharp after the tepid listing. In a sense the stock opened moderate but rallied sharply higher during the day and also closed at a substantial premium to the listing price. For the day, the Nifty closed 80 points higher while the Sensex closed a full 232 points higher. This led to the stock picking up momentum during the day, despite a very tepid listing. The stock had seen strong subscription in the IPO. The subscription was 37.28X  overall and QIB subscription at 86.37X. Hence the listing was expected to be extremely strong. However, while the listing was tepid, the performance during the day was quite strong. However, it must be said that the sharp rally in the market during the day led to the stock also picking up momentum after listing at a very moderate premium. Here is the Yatharth Hospital and Trauma Care Services Ltd listing story on 07th August 2023.

Yatharth Hospital IPO subscription and pricing details

The IPO price was fixed at the upper end of the band at ₹300 which was anyways along expected lines considering the extremely strong 37.28X overall subscription and the 86.37X QIB subscription in the IPO. In addition, the retail portion had got subscribed 8.66X in the IPO while the HNI / NII portion also got a healthy subscription of 38.62X. The price band for the IPO was ₹285 to ₹300. On 07th August 2023, the stock of Yatharth Hospital and Trauma Care Services Ltd listed on the NSE at a price of ₹306.10, a very moderate premium of just 2.03% over the IPO issue price of ₹300. On the BSE also, the stock listed at ₹304, a premium of just 1.33% over the IPO issue price.

How the stocks closed on both the exchanges

On the NSE, Yatharth Hospital and Trauma Care Services Ltd closed on 07th August 2023 at a price of ₹331.30. That is a first day closing premium of 10.43% on the issue price of ₹300 and also a premium of 8.23% on the listing price of ₹306.10. In fact, the listing price turned out to be the low price of the day and the stock traded for the entire trading day above the opening listing price. On the BSE, the stock closed at ₹333.75. That represents a first day closing premium of 11.25% above the IPO issue price and also a premium of 9.13% above the listing price on the BSE. On both the exchanges, the stock listed moderately above the IPO issue price but closed Day-1 after rallying much higher. In fact, the opening price turned out to be the low price of the day on both the exchanges. The high price of the day was above the closing price on both the exchanges, which could be attributed to some late selling in the counter. Clearly, the strong performance of the markets had its impact on the stock on 07th August 2023 allowing the stock to close the day well above the issue price for the day. In short, the bounce in the market allowed the stock to rally, despite a late sell off in the stock, which is evident from the pending sell orders on the exchange.

Price volume story on the NSE

Let us look at how the stock traversed on the National Stock Exchange (NSE) on 07th August 2023. On Day-1 of listing, Yatharth Hospital and Trauma Care Services Ltd touched a high of ₹343.10 on the NSE and a low of ₹306.10. The premium to the listing price sustained through the day, although the stock did not manage to hold on to the highs. Mainboard IPOs also do not have any upper circuit of 5%, unlike SME IPOs. If you look at the range of prices, the stock opening price turned out to be the low point of the day while the closing price of the day was below the high price due to late selling pressure on the stock. The strong post-listing performance of the IPO stock was supported by robust markets with the Nifty gaining sharply. On Day-1 of listing, the Yatharth Hospital and Trauma Care Services Ltd stock traded a total of 221.96 lakh shares on NSE amounting to value of ₹727.34 crore during the day.  The order book during the day showed a lot of back and forth with the bias shifting from buying to selling. However, the stock closed the day with pending sell orders of 151,355 shares on the NSE. The table below captures the opening price discovery in the pre-open period on the NSE.

Data Source: NSE

Price volume story on the BSE

Let us look at how the stock traversed on the Bombay Stock Exchange (BSE) on 07th August 2023. On Day-1 of listing, Yatharth Hospital and Trauma Care Services Ltd touched a high of ₹342.70 on the BSE and a low of ₹304. The premium to the listing price sustained through the day, although the stock did not manage to hold on to the highs. Mainboard IPOs also do not have any upper circuit of 5%, unlike SME IPOs. If you look at the range of prices, the stock opening price turned out to be the low point of the day while the closing price of the day was below the high price due to late selling pressure on the stock. The strong post-listing performance of the IPO stock was supported by robust markets with the Sensex gaining sharply. On Day-1 of listing, the Yatharth Hospital and Trauma Care Services Ltd stock traded a total of 15.16 lakh shares on BSE amounting to value of ₹49.57 crore during the day.  The order book during the day showed a lot of back and forth with the bias shifting from buying to selling. However, the stock closed the day with pending sell orders on the BSE.  The fact remains that the close showed a good bounce from the lows of the day.

Market cap and delivery volumes

While the volumes on the BSE were not as much as on the NSE, the trend was once again the same. The order book through the day showed a lot of strength although that was slightly marred by the slew of sell orders towards the close of the trading session. However, the bounce from the lows does indicate a signal of strength in the stock. That makes it a rather attractive stock after the strong listing on Monday. However, the bounce in the stock after a tepid listing can also be attributed to the strength in the market overall. On the NSE, out of the total 221.96 lakh shares traded during the first day of trading, the deliverable quantity represented 103.85 lakh shares or a deliverable percentage of 46.79% on the NSE, which is above the listing day median. That shows a lot of delivery action in the counter. Even on the BSE, out of the total 15.16 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 6.80 lakh shares representing total deliverable percentage of 44.87%, almost at par with the delivery action on the NSE.

At the close of Day-1 of listing, Yatharth Hospital and Trauma Care Services Ltd had a market capitalization of ₹2,865.25 crore with free-float market cap of ₹544.40 crore. Yatharth Hospital and Trauma Care Services Ltd has issued capital of 858.50 lakh shares with a par value of ₹10 per share.