Yatharth Hospital shares touched a fresh 52-week high today after Advent International agreed to invest Rs 3,150 crore.

Here’s the story behind the move. Yatharth Hospital’s board has approved issuing shares and warrants worth up to Rs 3,150 crore to Rasmalai Limited, a Cyprus based investment vehicle linked to Advent International.

Once the deal is done, Advent will hold a 24.9% minority stake in the hospital chain on a fully diluted basis. The structure of the deal has two parts.

The company will issue around 1.30 crore equity shares priced at Rs 985.17 each, raising Rs 1,283.33 crore upfront.

Alongside this, it will issue nearly 1.89 crore convertible warrants at the same price, worth Rs 1,866.67 crore in total.

For the warrants, Rasmalai will pay 25% upfront and the remaining 75% when the warrants get converted, sometime within 15 to 18 months of issue.

Even after this large infusion, the Tyagi family, who founded the company, will remain the biggest shareholder with a 55.8% stake, locked in for three years.

Rasmalai will get the right to nominate up to two non-executive directors on the board.

Shareholders still need to approve the proposal, and a meeting for this has been scheduled for 15 October.

Yatharth Hospital currently runs nine hospitals with close to 2,800 beds across Delhi NCR, Noida, Faridabad, Madhya Pradesh and Agra, and this fresh capital is expected to support its expansion plans in the region.

As of 14:53 pm, Yatharth Hospital shares are currently at Rs 1,064.50 on the NSE, up 8.37% for the day, moving between a low of Rs 985.10 and a high of Rs 1,083.80.

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