Aster DM Healthcare IPO

Aster DM Healthcare IPO

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