Business description – Aster DM Healthcare is one of the largest private healthcare service providers which operate in multiple GCC states based on numbers of hospitals and clinics. The company currently operates in all of the GCC states, which comprises the United Arab Emirates, Oman, Saudi Arabia, Qatar, Kuwait and Bahrain, in Jordan, in India and the Philippines. The company’s GCC operations are headquartered in Dubai, United Arab Emirates and Indian operations are headquartered in Kochi, Kerala.
The company operates in multiple segments of the healthcare industry, including hospitals, clinics and retail pharmacies and provides healthcare services through various brands “Aster”, “Medcare” and “Access”. The company commenced operations in 1987 as a single doctor clinic in Dubai established by founder, Dr. Azad Moopen. The company was incorporated in 2008 in a reorganisation to facilitate the growth of its operations, subsequent to which operations in the GCC states and India were consolidated.
The company had 149 operating facilities, including 10 hospitals with a total of 1,419 installed beds, as of 31 March 2013 and has expanded to 316 operating facilities, including 18 hospitals with a total of 4,651 installed beds, as of 31 March 2017. Further, it entered into an operation and management services agreement with Rashtreeya Sikshana Samithi Trust in Bengaluru effective 25 February 2017 to provide operation and management services at a hospital in J P Nagar, Bengaluru. In August 2014, it launched Aster Medcity in Kochi, Kerala, a multi-speciality hospital with a 670 bed capacity, to be positioned as a destination for medical value travel.
Promoters of Aster DM Healthcare – Dr Azad Moopen and Union Investments Private Limited
| Aster DM Healthcare IPO details | |
| Subscription Dates | 12 – 15 February 2018 |
| Price Band | INR180 – 190 per share |
| Fresh issue | INR725 crore |
| Offer For Sale | 13,428,251 shares (INR241.17 – 255.14 crore) |
| Total IPO size | INR966.17 – 980.14 crore |
| Minimum bid (lot size) | 78 shares |
| Face Value | INR10 per share |
| Retail Allocation | 35% |
| Listing On | NSE, BSE |
Use of funds
- Repayment and/or pre-payment of debt
- Purchase of medical equipment
- General corporate purposes
| Aster DM Healthcare’s financial performance (in INR crore) | ||||||
| FY2013 | FY2014 | FY2015* | FY2016* | FY2017* | H1 FY2018* | |
| Total revenues | 1,938.8 | 2,889.6 | 3,899.0 | 5,275.2 | 5,967.9 | 3,141.4 |
| Total expenses | 1,787.9 | 2,579.3 | 3,592.9 | 5,236.7 | 6,275.2 | 3,207.3 |
| Profit after tax | 91.8 | 177.8 | 272.1 | 8.2 | 266.7 | -82.7 |
| Net margin (%) | 4.7 | 6.2 | 7.0 | 0.2 | 4.5 | -2.6 |
* As per Ind-AS accounting standards
Aster DM Healthcare Contact Details
Aster DM Healthcare Limited
IX/475L, Aster Medcity, Kuttisahib Road
near Kothad Bridge, South Chittoor P.O.
Cheranalloor, Kochi – 682 027
Phone: +91 484 6699 228
Fax: +91 484 6699 862
Email: [email protected]
Website: www.asterdmhealthcare.com
Registrar of Aster DM Healthcare
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
Lal Bahadur Shastri Marg, Vikhroli (West)
Mumbai – 400 083
Phone: +91 22 4918 6200
Fax: +91 22 4918 6195
Email: [email protected]
Website: http://www.linkintime.co.in
Valuation of Aster DM Healthcare (Based on latest FY)
Earnings Per Share (EPS): INR4.28
Price/Earnings (P/E) ratio: 42.05 – 44.39
Return on Net Worth (RONW): 10.59%
Net Asset Value (NAV): INR40.5 per share
Aster DM Healthcare IPO Subscription Details
| Category | Shares offered | Subscription (no. of times, at 5 PM) | ||
| Day 1 | Day 2 | Day 3 | ||
| QIB | 10,517,400 | 0.50 | 0.50 | 2.09 |
| NII | 8,055,905 | 0.16 | 0.23 | 0.55 |
| Retail | 18,797,110 | 0.15 | 0.47 | 1.14 |
| Total | 37,370,415 | 0.25 | 0.43 | 1.29 |
Aster DM Healthcare IPO Allotment Status
Aster DM Healthcare IPO allotment status is now available on Link Intime’s website. Click on this link to get allotment status.
Listing Performance of Aster DM Healthcare
IPO Opening Date: 12 February 2018
IPO Closing Date: 15 February 2018
Finalisation of Basis of Allotment: 22 February 2018
Initiation of refunds: 22 February 2018
Transfer of shares to demat accounts: 23 February 2018
Listing Date: 26 February 2018
Listing Price on NSE: INR183 per share (down 3.68% from IPO price)
Closing Price on NSE: INR181.55 per share (down 4.44% from IPO price)
Bad timing. This year is going to be bad for IPOs.
Aster DM Healthcare IPO:
Dates – 12 Feb to 15 Feb
Price Band – 180 to 190
Bid Lot – 75 shares
Application Amount – 14,250
Issue Size — Fresh Issue (725 Cr.) + OFS (13.4 mn shares)
Issue Structure — QIB-50%, HNI-15%, Retail-35%
180 – 190 means PE ratio will be 42 – 44.4. Not very comfortable or attractive. Narayana Hrudayalaya a much better bet but overall investors have seldom made money in hospitals. Somehow, hospitals lose their edge as they grow. Sometimes, this happens too fast in the lifetime of founders. Example Fortis
@bullishbear. You are right, I’ve never made profits in hospitals and have now made it a point to stay away from these stocks. Aster may be good but I love my money!!
what was the ebitda for the previous years of the comapny?
Good results yoy posted by aster rather than Galaxy surfactant it was good listing today. And positive move by market last two days. So I think aster will be positive subscribe
190 is attractive price.
Thanda IPO, no excitement around it!!
Loss making company
Stay away
Gmp only 5-10 rs
Pls avoid
Not a bad business but the price is too high!