The surge came after the company’s board approved a preferential allotment of shares and warrants worth up to ₹3,150 crore, according to a regulatory filing on Thursday. This announcement extends the company’s gains to a third consecutive day.
The securities are being issued to Rasmalai Limited, a Cyprus-based investment vehicle of Advent International. Once completed, the deal will give Advent a 24.9% minority stake in the hospital chain on a fully diluted basis.
How the investment is structured
The company will issue up to 1.30 crore equity shares at ₹985.17 apiece, raising ₹1,283.33 crore, payable entirely upfront.
It will also issue up to 1.89 crore convertible warrants at the same price, worth ₹1,866.67 crore in total. Rasmalai will pay 25% of the warrant price, or ₹246.29 per warrant, upfront.
The remaining 75%, or ₹738.88 per warrant, will fall due when the warrants are exercised, within 15 to 18 months of issue.
The issue price of ₹985.17 was set marginally above the statutory floor price of ₹984.70, calculated under SEBI’s ICDR regulations using September 15 as the relevant date for pricing.
Shareholding pattern after the deal
The Tyagi family, Yatharth’s founding promoters, held a 55.8% stake before the transaction and will remain the largest shareholder, with their holding locked in for three years.
Rasmalai Limited will be classified as a public, non-promoter shareholder and will get the right to nominate up to two non-executive directors to Yatharth’s board, along with one representative each on the audit committee and the nomination and remuneration committee.
To accommodate the new shares, the board also approved raising the company’s authorised share capital from ₹115 crore to ₹150 crore.
Also Read: Yatharth Hospital sees over 37% revenue growth in FY27 despite pricing reform proposals
Shareholders are set to vote on the proposals at an extraordinary general meeting (EGM) scheduled for October 15. An EGM is a special shareholder meeting convened outside the regular annual schedule to address urgent or significant matters requiring immediate attention.
About the companies
Yatharth Hospitals currently runs nine multi-speciality hospitals with close to 2,800 operational beds across Noida, Greater Faridabad, Delhi NCR, Madhya Pradesh and Agra.
Also Read: Yatharth Hospital expects to surpass FY26 growth, targets 5,000 beds in three years
Advent International, which manages more than $109 billion in assets globally, holds more than 55 healthcare investments across 17 countries. The private equity firm’s healthcare portfolio includes Care Hospitals, Apollo 24/7, Cohance, Bharat Serums and Vaccines, and Felix Pharma.
Shares of Yatharth Hospitals are trading 6.1% higher on Thursday after the announcement at ₹1,041. The stock has risen 55% so far this year.
