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    Aster DM Healthcare IPO opens Monday; should you buy?

    Synopsis

    The price band has been fixed at Rs 180–190 per share with a face value of Rs 10 each.

    IPO2-thinkstockThinkStock Photos
    The price band has been fixed at Rs 180–190 per share with a face value of Rs 10 each.
    NEW DELHI: Private healthcare service provider Aster DM Healthcare will launch its initial public offer (IPO) on Monday.

    On Friday, the company raised Rs 294 crore from anchor investors. "Under anchor investors (AIs) portion in the public issue of Aster DM Healthcare, 154,75,843 equity shares have been subscribed by seven AIs at Rs 190 per equity share," it said in a BSE filing on Friday.

    Here are the key details you must know about the issue and the company.

    IPO highlights

    The price band of the company has been fixed at Rs 180–190 per share with a face value of Rs 10 each. The company will issue a total number of 51,586,146 equity shares (including fresh issue of 38,157,895 shares and offer for sale of 13,428,251 shares).

    At the upper end of the price band, the IPO is expected to fetch Rs 980.13 crore. Proceeds of the issue will be used towards repayment of debt, purchase of medical equipment, and for other general corporate purposes. The issue closes on Wednesday. The scrip will be listed on both BSE and NSE.

    About the company
    Incorporated in 1987, Aster DM Healthcare is one of the leading private healthcare service providers, which operates in India and GCC (Gulf Cooperation Council) countries. Its Indian operations are headquartered in Kochi. It operates in multiple segments of the healthcare industry, such as hospitals, clinics and retail pharmacies.

    Aster’s hospitals are located in Kochi, Kolhapur, Kozhikode, Kottakkal, Bengaluru, Vijayawada, Guntur, Wayanad and Hyderabad and are generally operated under the “Aster”, “MIMS”, “Ramesh” or “Prime” brands.

    According to its press release, the company’s clinics in India are located at Kozhikode, Eluru and Bengaluru. The company had 17,408 employees as of September 30, 2017, including 1,417 full time doctors, 5,797 nurses, 1,752 paramedics and 8,442 other employees (including pharmacists). Dr Azad Moopen and UIPL (Union Investments) are the promoters of the company.

    Financials
    The company's total revenue from operations were Rs 3,875.84 crore, Rs 5,249.89 crore, Rs 5,931. 28 crore and Rs 3,122.58 crore for fiscal years 2015, 2016 and 2017 and the six months ended September 30, 2017, respectively.

    EBITDA was Rs 514.29 crore, Rs 473.15 crore, Rs 364. 24 crore and Rs 193.38 crore for fiscal 2015, 2016 and 2017 and the six months ended September 30, 2017, respectively.

    "Our operations in India, which primarily consist of hospitals, accounted for 18.58 per cent of our total revenues from operations for the six months ended September 30, 2017," it says in its RHP.

    Issue's manager
    Kotak Mahindra Capital Company, Axis Capital and Goldman Sachs (India) Securities are the global coordinators and Book Running Lead Managers to the offer (“GCBRLMs”). ICICI Securities, JM Financial and YES Securities (India) are the Book Running Lead Managers (“BRLMs”, and together with the GCBRLMs, the “Managers”) to the Offer. The Registrar to the Offer is Link Intime India Private.

    Risk Factors
    The company in its Red Herring Prospectus has listed a number of risks its businesses confront. Some of them are as below:

    • Our ownership structure in most of the GCC States being subject to risks associated with foreign ownership restrictions and the shareholder arrangements with local shareholders being violative of the local laws of the jurisdiction
    • Our dependency on our operations in the GCC States and the effect of foreign ownership restrictions, financial, economic and political developments in or affecting the GCC States
    • Our ability to recruit and retain high quality doctors and other healthcare professionals, such as nurses, pharmacists and technicians
    • Risks associated with potential acquisitions and our expansion strategy
    • Our ability to maintain our relationships with our partners following strategic acquisitions.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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