Yatharth Hospital & Trauma Care Services Limited has submitted its Monitoring Agency Report for the quarter ended June 30, 2026. The report, issued by CARE Ratings Limited, confirms that IPO proceeds have been utilized as per the objects outlined in the offer document. However, it also notes ongoing delays in the implementation timeline for certain projects, potentially impacting future cost overruns and project viability.
Monitoring Agency Report Details IPO Fund Utilization
Yatharth Hospital & Trauma Care Services Limited has released its Monitoring Agency Report for the quarter ending June 30, 2026. Prepared by CARE Ratings Limited, the report details the utilization of funds raised through the company’s Initial Public Offer (IPO).
Utilization Aligned with Objectives, but Delays Noted
According to the report, the utilization of IPO proceeds is broadly in line with the objects disclosed in the Offer Document. However, the Monitoring Agency has highlighted ongoing delays in the implementation timeline of certain projects. Specifically, delays have been observed in the utilization of funds allocated towards borrowings availed by subsidiaries, their capital expenditure expenses, and general corporate purposes. These were originally planned for completion by March 2025.
The report indicates that these delays may lead to cost overruns, potentially affecting the viability of the objects. CARE Ratings has reviewed the information provided by the issuer and other sources believed to be reliable, without performing an independent audit. The company’s Audit Committee has reviewed and taken note of this report.
Deployment of Unutilized Proceeds
As of the quarter ended June 30, 2026, the unutilized IPO proceeds amounted to ₹48.45 crore. These funds have been primarily deployed in fixed deposits with Axis Bank across various tenors, with earning rates ranging from 5.50% to 6.25%. The report also notes that certain expenses, such as IPO expenses pending to be paid and interest income from Fixed Deposits, are being adjusted against the total deployed amount.
Implementation Timeline Insights
The report further breaks down the implementation status of the IPO objects. While repayment of borrowings and funding for inorganic growth initiatives are reported as fully utilized or completed, funding for capital expenditure and other strategic initiatives shows ongoing implementation with delays. For instance, the funding for capital expenditure for two hospitals and subsidiaries indicates ongoing progress but with delays in the exact number of days not yet ascertainable. General Corporate Purpose is also marked as ongoing with similar delay notifications.
Source: BSE
