Plutus Wealth Sells Entire Stake in Yatharth Hospital for Rs 101 Crore

The shocking and drastic move by Plutus Wealth Management LLP for Yatharth Hospital & Trauma Care Services was to sell out all his shares in the open market on July 3rd.

The total number of shares is 25 lakhs, as per the data available on BSE. Plutus Wealth is diluting a total of 2.9% of Yatharth Hospital’s shares in the open market in this bulk deal. Rs. 405.07 per share was sold out, resulting in a total deal size of 101.27 crore, and meanwhile, ICICI Prudential Mutual Fund acquired 20 lakh shares for Yatharth Hospital & Trauma Care Services at an average price of 405 per share with a total transaction cost of 81 crore.  The details of the rest of the buyers still need to be made available. Less than 1% of the share price fell for Yatharth Hospital & Trauma Care Services due to this block deal.

All about Yatharth Hospital’s IPO:

In the pre-IPO placement round, the company has allotted 20 lakh equity shares amounting to Rs 60 crore to Plutus Wealth Management LLP and 10 lakh equity shares worth Rs 30 crore to Think India Opportunities Master Fund LP.Yatharth Hospital IPO Company allotted 20 lakh shares, which cost around 60 crores, to Plutus Wealth Management LLP in the pre-IPO placement allotment, with each share worth 300 rupees. The rest of the 30 crore share has been given to the Think India Opportunities Master Fund LP.

In less than a year, Plutus Wealth Management LLP got the crore after selling each share at a price of Rs. 405.07. In its pre-IPO fundraising campaign, Yatharth Hospital has raised a total of Rs 120 crore.

Plutus Wealth Management LLP exit strategy:

They bought each share for 300 rupees and got a good value for their money of 405.07 crore in less than a year after the IPO was released in the Indian stock market.

As per investor psychology, they got a good exit price for their investment, so that’s why they exited entire shares as they were looking for another such opportunity in a different stock.

Conclusion: Plutus Wealth has given a good opportunity to the ICICI Prudential Mutual Fund to invest more in the Yatharth Hospital, as they had previously invested in March. They are seeing a good bull rally in this stock, as they bought a 20 lakh share.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.