Aster DM Healthcare, running hospitals in India and the Middle East, on Monday fixed a price band of Rs180–190 per equity share for its initial share-sale, that is expected to garner Rs980 crore.

The initial public offer (IPO) will open on 12 February and close on 18 February, Aster said in a statement. The IPO comprises fresh issue of equity shares worth up to Rs725 crore and an offer for sale of up to 1,34,28,251 scrips by the company’s promoter Union Investments.

The company said it will be launching the IPO “with a price band of Rs 180-190 per equity share of face value of Rs 10 each of the company’’. At the upper end of the price band, the public issue is expected to fetch Rs 980.13 crore.

Kotak Mahindra Capital Company, Axis Capital, Goldman Sachs (India) Securities, ICICI Securities, JM Financial and Yes Securities will manage the company’s public issue. Equity shares of the company are proposed to be listed on BSE and NSE.

Company Profile

Aster DM Healthcare operates in India, the Philippines, Jordan and all the GCC (Gulf Cooperation Council) states comprising the United Arab Emirates, Oman, Saudi Arabia, Qatar, Kuwait and Bahrain. As of September 2017, the company had 17,408 employees including 1,417 full-time doctors.

The company operates in multiple segments of the healthcare industry, including hospitals, clinics and retail pharmacies and provide healthcare services through various brands ‘Aster’, ‘Medcare’ and ‘Access’.

It has grown from 149 operating facilities in 5 countries, including 10 hospitals, as of March 2013 to 323 operating facilities in 9 countries, including 19 hospitals, as of September 2017. In same period, it has increased the bed capacity of its hospitals from 1,419 beds to 4,754.

According to the Frost & Sullivan report, it operates the largest chain of retail pharmacies in the UAE based on number of centres as of March 2017.

Objects of the Issue

The fresh issue proceeds would be utilised for repayment of debt (Rs 564.2 crore); purchase of medical equipment (Rs 110.31 crore); and general corporate purposes.
The company will not receive any proceeds from the offer for sale.

Aster DM Healthcare IPO details:

Issue Will Open on: Feb 12, 2018 – Feb 15, 2018
Price Range: Rs 180 – Rs 190 Per Equity Share
Face Value: Rs 10 per share
Issue Type: Book Built Issue IPO
Minimum bid (lot size): 78 shares
Listing On: NSE, BSE