Yatharth Hospital slumps on facing land dispute in Madhya Pradesh

Yatharth Hospital and Trauma Care Services, following its acquisition of Ramraja Multispeciality Hospital & Trauma Centre, finds itself embroiled in a land dispute in Madhya Pradesh. The acquired land, totaling 5.698 hectares and obtained between 2012 and 2017 from individual owners, had received necessary No Objection Certificates (NOCs) and government approvals for commercial and hospital operations. Ramraja Hospital got operational in year 2017 and in 2019, the National Highway Authority of India (NHAI) acquired portions of this land for road widening, for which compensation was duly received.

A recent directive from the Commissionerate of Sagar Sambhag in Madhya Pradesh has instructed the takeover of the Ramraja hospital premises, asserting that the land belongs to the Government of Madhya Pradesh. In response, Yatharth Hospital is disputing this order and is preparing to appeal at the Madhya Pradesh High Court. The company maintains that the order is not founded on accurate facts and are actively engaged in legal discussions to resolve the matter.

Despite this dispute, Yatharth Hospital is committed to ensuring the uninterrupted operation of Ramraja Hospital during this process and anticipates minimal impact on its financial and operational performance.

Yatharth Hospital & Trauma Care Services (Yatharth Hospitals) operates three super specialty hospitals located in National Capital Region of Delhi (Delhi NCR), i.e., at Noida, Greater Noida and Noida Extension, Uttar Pradesh. As of March 31, 2023, it engaged 609 doctors and offer healthcare services across several specialties and super specialties.

The company's consolidated net profit jumped 73% to Rs 190 crore in Q1 FY24 as compared with Rs 110 crore in Q1 FY23. Revenue from operations increased 39% to Rs 154.50 crore during the quarter as compared with Rs 111.10 crore posted in corresponding quarter last year.

Shares of Yatharth Hospital were listed on the stock exchanges on 7 August 2023. The scrip was listed at a price of Rs 304, at a premium of 1.33% as compared to the issue price of Rs 300. The initial public offer (IPO) of Yatharth Hospital and Trauma Care Services was subscribed 36.16 times. The issue opened for bidding on 26 July 2023 and it closed on 28 July 2023. The price band of the IPO was set at Rs 285-300 per share.

Powered by Capital Market - Live News