Aster DM Healthcare Expects Third Of Its Revenue From India In 3-4 Years
The initial public offer will open on Feb. 12 and close on Feb. 18, said Aster.
Dubai’s healthcare provider Aster DM Healthcare Ltd., is targeting one-third of its business from India in the next three to four years.
The company is looking at opportunities for acquisitions, especially with the National Health Protection Scheme proposed in Budget 2018, said Azad Moopen, chairman and managing director of the company at an event to launch the company’s initial public offering.
Aster DM Healthcare has five hospitals in the pipeline in India. It has been steadily increasing its India business from 2 percent of overall revenue in financial year 2013 to 19 percent as of Sept. 30, 2017. The company is also looking to open four new hospitals in Dubai in the next four years for an additional capacity of 286 beds, according to its red herring prospectus.
The company’s IPO, comprising a fresh issue of Rs 725 crore and an offer for sale of nearly Rs 255 crore, opens on Feb. 12 and closes on Feb. 15. The price band has been fixed at Rs 180 – 190 per share with a face value of Rs 10 each. The company is looking to raise Rs 980 crore at the upper end of the price band.
The book runners are Kotak Mahindra Capital, Axis Capital, Goldman Sachs (India) Securities, ICICI Securities, JM Financial and YES Securities (India).
The proceeds from the fresh issue will be used in repayment of debt, purchase of medical equipment and other general corporate purposes.
Incorporated in 2008, the company received nearly 81 percent of its sales from Gulf Cooperation Council (GCC) states comprising of United Arab Emirates, Oman, Saudi Arabia, Qatar, Kuwait and Bahrain, in Jordan. The remaining business comes from India and Philippines.
The healthcare provider had a network of nine hospitals, 90 clinics and 206 retail pharmacies in the GCC states. There are ten multi-specialty hospitals and seven clinics in India, and one clinic in the Philippines as of September 30, 2017.
