Aster DM Healthcare IPO subscribed 1.31 times

Receives bids for 4.88 crore shares

The initial public offer (IPO) of Aster DM Healthcare received bids for 4.88 crore shares, as against 3.73 crore shares on offer. The issue was subscribed 1.31 times.

The issue opened for subscription on Monday, 12 February and closed yesterday, 15 February 2018. The price band for the issue had been fixed at Rs 180 to Rs 190 per share. The offer comprised of IPO of Rs 725 crore. The offer also comprised offer for sale (OFS) of 1.34 crore shares.

Category-wise subscription details showed that the qualified institutional buyers (QIBs) category was subscribed 2.1 times, the non-institutional investors' 0.55 times and the retail individual investors (RIIs) category garnered a subscription of 1.18 times.

The objects of the issue are to repay certain borrowings of Rs 564.16 crore and to purchase medical equipment worth Rs 110.31 crore. The balance will be for other corporate purposes apart from the benefits of listing the equity shares on the BSE and the NSE and to enhance visibility and brand image and provide liquidity to the existing shareholders.

Ahead of the opening of the IPO, the board of directors of the company, at its meeting held on 9 February 2018, finalized allocation of 1.54 crore equity shares to a slew of anchor investors at Rs 190 per share.

On a consolidated basis, Aster DM Healthcare reported a net loss of Rs 82.71 crore on net sales of Rs 3122.59 crore for the six months ended September 2017.

Aster DM Healthcare is a Kochi-based (Kerala) healthcare service provider, with operations in Gulf Cooperation Council (GCC) states of the United Arab Emirates, Oman, Saudi Arabia, Qatar, Kuwait and Bahrain, India and Philippines.

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