Yatharth Hospital & Trauma Care Services Limited’s Board of Directors has approved a significant increase in the company’s authorized share capital from INR 115 crore to INR 150 crore. Concurrently, the Board sanctioned a preferential issue and allotment of equity shares and warrants to Rasmalai Limited, a Cyprus-based entity, for a total consideration of approximately INR 31,500 crore. This move aims to raise substantial capital and will result in a minority investment of 24.87% post-issue.
Yatharth Hospital Boosts Capital and Plans Major Share Issuance
The Board of Directors of Yatharth Hospital & Trauma Care Services Limited convened on September 17, 2026, to discuss and approve several key corporate actions. A primary decision was the approval to increase the company’s authorized share capital from INR 115,00,00,000 (INR 115 Crores) to INR 150,00,00,000 (INR 150 Crores). This significant capital enhancement is subject to shareholder approval.
Preferential Issue to Rasmalai Limited
In a major strategic move, the Board also approved a preferential issue and allotment of equity shares and warrants to Rasmalai Limited, a company incorporated under the laws of Cyprus. The total consideration for this preferential issue is aggregated at approximately INR 31,50,00,02,910.60 (Indian Rupees Three Thousand One Hundred and Fifty Crores and Two Thousand Nine Hundred Ten and Sixty Paisa). This transaction will result in Rasmalai Limited acquiring up to 24.87% of the company’s post-issue share capital on a fully diluted basis.
Details of the Preferential Issue:
- Equity Shares: Up to 1,30,26,516 equity shares of face value INR 10 each, at an issue price of INR 985.17 per share, for a total consideration of approximately INR 12,83,33,32,767.72.
- Warrants: Up to 1,89,47,664 warrants, each carrying the right to subscribe to one fully paid-up equity share of face value INR 10. The price per warrant is INR 985.17, with 25% payable upfront and the remaining 75% payable upon exercise. The aggregate consideration for warrants is approximately INR 18,66,66,70,142.88.
The preferential issue is structured as a minority investment and is in accordance with the SEBI ICDR Regulations. The transaction is conditional upon shareholder approval via a special resolution at an Extra-Ordinary General Meeting (EGM) scheduled for October 15, 2026, and other applicable regulatory approvals.
Amendments to Articles of Association
The Board also approved the adoption of amended and restated Articles of Association (Restated Articles) to incorporate the rights and obligations of the Investor and the Promoters, as per the Investment Agreement. These changes, including special rights granted to the Investor and Promoters, will also require shareholder approval.
Extra-Ordinary General Meeting Convened
An EGM has been scheduled for October 15, 2026, at 11 AM IST, to seek shareholder approval for the increase in authorized share capital, the preferential issue, the adoption of Restated Articles, and the upside share arrangement under the Investment Agreement.
Source: BSE
