Aster DM Healthcare Ltd is one of the private healthcare service providers which operate in multiple GCC states. They are going to introduce their initial public offer which will hit the primary market on 12th February 2018 and closes on 15th February 2018. The company aims to raise around Rs.725.00 Cr by offering shares at Rs 180 – Rs 190 Per Equity Share.
About company
Aster DM Healthcare Ltd was incorporated as DM Healthcare Private Limited on January 18, 2008 at Kochi, Ernakulam, Kerala. According to the Frost & Sullivan Report, they are private healthcare service providers which operate in multiple GCC states based on numbers of hospitals and clinics and an emerging healthcare in India.
They operate in multiple segments of the healthcare industry which include hospitals, clinics and retail pharmacies and provide healthcare services to patients across economic segments in several GCC states through their various brands “Aster”, “Medcare” and “Access”.
They commenced operations in 1987 as a single doctor clinic in Dubai established by their founder, Dr. Azad Moopen. Their 
Company was incorporated in 2008 in a reorganisation to facilitate the growth of their operations, subsequent to which operations in the GCC states and India were consolidated under their Company. Their “MIMS”, or Malabar Institute of Medical Sciences, hospital in Kozhikode, Kerala, India, commenced operations in 2001.
They had 149 operating facilities, including 10 hospitals with a total of 1,419 installed beds as of March 31, 2013 and have expanded to 323 operating facilities, including 19 hospitals with a total of 4,754 installed beds as of September 30, 2017. Further, we entered into an operation and management services agreement with Rashtreeya Sikshana Samithi Trust in Bengaluru effective February 25, 2017 to provide operation and management services at a hospital in J P Nagar, Bengaluru.
They have a diversified portfolio of healthcare facilities, consisting of 9 hospitals, 90 clinics and 206 retail pharmacies in the GCC states, 10 multi-specialty hospitals and 7 clinics in India, and 1 clinic in the Philippines. Their hospitals in India are located in Kochi, Kolhapur, Kozhikode, Kottakkal, Bengaluru, Vijayawada, Guntur, Wayanad and Hyderabad and are operated under the “Aster”, “MIMS”, “Ramesh” or “Prime” brands. Their clinics in India are located at Kozhikode, Eluru and Bengaluru.
They 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). In addition, they had 891 “fee for service” doctors working across various specialities in their hospitals in India.
They currently operate in all of the GCC states, which comprise the United Arab Emirates, Oman, Saudi Arabia, Qatar, Kuwait and Bahrain, in Jordan (which they classify as a GCC state as part of their GCC operations), in India and the Philippines. Their GCC operations are headquartered in Dubai, United Arab Emirates and their Indian operations are headquartered in Kochi, Kerala.
A majority of their hospitals and clinics provide secondary and tertiary healthcare services to patients. In addition to providing core medical, surgical and emergency services, some of their hospitals provide complex and advanced quaternary healthcare in various specialties, including cardiology, oncology, radiology, ophthalmology, neurosciences, paediatrics, gastroenterology, orthopaedics and critical care services.
Strategy
Their mission is to improve the quality of healthcare services provided in the communities.
- Continue to grow within their existing centers.
- Increase presence by way of greenfield expansions.
- Pursue inorganic growth opportunities to expand into newer service offerings or new markets.
- Capitalise on mandatory health insurance in GCC.
- Implementation of initiatives to improve existing operational efficiencies and profitability.
Qualitative Factors
They believe the following business strengths allow them to successfully compete in the industry:
- Long standing presence across GCC states and India with strong brand equity
- Well diversified portfolio of service offerings to leverage multiple market opportunities
- Provision of high quality healthcare service
- Ability to attract and retain high quality medical professionals
- Ability to identify, adapt to and capitalise on market developments, conditions, trends and opportunities
- Track record of operating and financial performance and growth
- Experienced core management team
Objects of the Issue:
The Offer comprises the Fresh Issue and the Offer for Sale. Company will not receive any proceeds from the Offer for Sale. Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:
- Repayment and/or pre-payment of debt.
- Purchase of medical equipment.
- General corporate purposes.
Bid/Offer Programme
| BID/OFFER OPENS ON | February 12, 2018 |
| BID/OFFER CLOSES ON | February 15, 2018 |
| Bid/Offer Closing Date | February 15, 2018 |
| Finalisation of Basis of Allotment with the Designated Stock Exchange | On or about February 22, 2018
|
| Initiation of refunds (if any, for Anchor Investors)/unblocking of funds from ASBA Account | On or about February 22, 2018
|
| Credit of Equity Shares to demat accounts of Allottees | On or about February 23, 2018
|
| Commencement of trading of the Equity Shares on the Stock Exchanges | On or about February 26, 2018 |
Financial of the issue
Aster has (on a consolidated basis) posted revenue/net profits of Rs. 3899.05 cr., / Rs. 272.11 cr. (FY15-on proforma basis), Rs. 5275.16 cr. / Rs. 8.21 cr. (FY16) and Rs. 5967.90 cr. / Rs. 266.75 cr. (FY17). For first half of current fiscal, it has earned loss of Rs. -82.71 cr. on revenue of Rs. 3141.37 cr. This was due to taking over of one Government hospital. Because of negative Earning, EPS for this year cannot be calculated.
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