Yatharth Hospitals jumps 9%: Advent to acquire 24.9% stake for Rs 3,150 cr via warrants, shares

The company held its board meeting today and announced plans to raise Rs 3,150 crore in primary capital from global private equity investor Advent International, with the transaction expected to give Advent a 24.9% stake in the listed hospital chain. 

Yatharth Hospitals stake sale to Advent’s Cyprus-based investment vehicle

The transaction will involve the issuance of new equity shares and warrants on a preferential issue basis to Advent’s Cyprus-based investment company, Rasmalai Limited. 

Rasmalai will subscribe to up to 1.30 crore equity shares and up to 1.89 crore warrants of Yatharth Hospitals at an issue price of Rs 985.17 per security.

Rasmalai currently does not hold any shares in Yatharth Hospital. After the proposed issue, it will hold up to 3.19 crore shares, assuming all the warrants are exercised. The investor will be classified as a public, non-promoter shareholder. 

Tyagi family to remain largest shareholder

Following the transaction, the Tyagi family will remain the largest shareholder in Yatharth Hospitals and will continue to guide the company’s long-term strategy.

Yatharth Tyagi, Whole-time Director, Yatharth Hospitals, said the investment would help the company accelerate its expansion.

“Beyond capital, Advent brings deep healthcare expertise, global insights, and a strong value-creation mindset that will, we believe, help accelerate our next phase of growth. Together, we aim to expand our reach, strengthen our capabilities, and build one of India’s leading healthcare networks while remaining committed to delivering high-quality outcomes for patients,” Tyagi said.

Pankaj Patwari, Managing Director at Advent, said the investment underlines the private equity firm’s long-term focus on India’s healthcare sector.

“This investment underscores Advent’s deep and longstanding commitment to India’s healthcare sector, which we believe is entering a decade of structural growth as access expands, quality improves, and consolidation advances,” Patwari said.

Authorised capital raised to Rs 1,500 crore

The board has also approved an increase in Yatharth Hospital’s authorised share capital from Rs 1,150 crore to Rs 1,500 crore, subject to shareholder approval.

The number of authorised equity shares will increase from 11.5 crore to 15 crore, while the face value will remain at Rs 10 per share.

Shareholders to vote on October 15

Yatharth Hospital will hold an extraordinary general meeting (EGM) on October 15 to vote on the increase in authorised share capital, preferential issue, amended articles of association, special rights for Rasmalai, rights for the promoters and the upside share arrangement.

About Yatharth Hospital

Founded in 2008, Yatharth Hospitals has built a healthcare network across North India. It currently operates nine multi-speciality hospitals with around 2,800 beds and an overall announced capacity of around 3,250 beds.