Yatharth Hospital & Trauma Care Expands with Strategic Acquisition of Delhi Super Specialty Hospital

The latest acquisition comes shortly after Yatharth’s purchase of Faridabad-based Asian Fidelis Hospital in February 2024.

Bengaluru-based healthcare provider Yatharth Hospital & Trauma Care Services has announced its successful bid for a super specialty hospital in Delhi, marking the company’s second acquisition within a year.

The latest acquisition comes shortly after Yatharth purchased Faridabad-based Asian Fidelis Hospital in February 2024.

This expansion into Delhi’s healthcare market reflects Yatharth’s commitment to strategic growth, both through acquisitions and brownfield expansions.

The hospital operator’s announcement, made via an exchange filing, generated excitement in the stock market. Yatharth Hospital shares surged by 4.5%, hitting a 52-week high of INR 684.40 on the BSE.

The newly acquired hospital, located in Model Town, New Delhi, offers comprehensive super specialty services and can be expanded to accommodate over 300 beds, positioning Yatharth to capture a large residential and institutional client base.

Strengthening Presence in a Key Market

Yatharth Hospital’s acquisition under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, reflects its focus on expanding into the Delhi-NCR healthcare market.

While the hospital's name was not disclosed in the official statement, sources revealed it is the MD City Hospital in North Delhi. The acquisition is estimated to be worth around INR 160 Cr, according to sources close to Fortune India.

“The acquisition will provide us with a firm presence in the attractive Delhi market and further solidify Yatharth's standing as a leading super specialty hospital chain in Northern India,” the company stated.

Yatharth Tyagi, the full-time director of Yatharth Hospital, highlighted the importance of the acquisition in advancing the hospital’s growth objectives and delivering quality healthcare to more patients in the region.

"This is in line with our unwavering commitment to growth through strategic expansion, both organic and inorganic, showcasing our expertise in developing new healthcare facilities and successfully turning around existing operations,” Tyagi remarked.

Yatharth Hospital's Future Expansion Plans

Founded in 2008, Yatharth Hospital commenced operations in Noida in 2010 with a capacity of 250 beds. Over the years, it has grown its bed capacity to approximately 1,605 beds across five locations in North and Central India.

The healthcare group operates three hospitals in Uttar Pradesh (Noida, Greater Noida, and Noida Extension), one in Madhya Pradesh (Jhansi-Orachha), and another in Haryana (Faridabad).

This latest acquisition brings Yatharth closer to its target of doubling bed capacity to 3,000 within three years.

Yatharth has a robust pipeline for future expansion. Tyagi recently shared the company’s plans for adding 200 and 250 beds at its Noida Extension and Greater Noida hospitals, respectively.

“We have recently acquired adjacent land parcels, enabling us to expand our hospitals in Noida Extension and Greater Noida,” he told Fortune India. This brownfield expansion aligns with Yatharth’s mission to serve a larger population base while maintaining high-quality care.

Stock Market Momentum

The acquisition news was well-received by investors, with Yatharth’s shares climbing by 4.4% to INR 684.40 on the BSE.

Yatharth Hospital, which entered the stock market in August 2023 following an initial public offering (IPO) that raised INR 686.55 Cr, has seen impressive growth in its share price.

Since its IPO, the stock has surged by 129% from the issue price of INR 300, nearly doubling from its 52-week low of INR 344 touched in October 2023.

Over the past year, the stock has returned 84% to shareholders and delivered a 54% increase over the past six months. In spite of recent corrections in the broader market, the stock gained 21% in the past month alone.

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