Aster DM Healthcare claims to be India’s third largest hospital chain, behind Apollo and Fortis, and is reportedly eyeing a valuation that will be double that of Fortis. However, unlike its bigger listed peers, Aster doesn’t have any significant presence in India’s tier-1 cities of Delhi, Mumbai, Kolkata, Chennai, Bangalore, & Hyderabad. Aster’s largest presence is in the tier-2 city of Kochi in Kerala, but this hospital - Aster Medcity - is a facility that can compete with India’s best, in terms of infrastructure and facilities.
Aster DM Healthcare, a multinational chain of hospitals, clinics, and pharmacies, is planning for its IPO soon. Promoted by Dr. Azad Moopen, a medical entrepreneur hailing from Kerala and who made his fortune in the Middle East, Aster DM Healthcare is reportedly eyeing a Rs. 1200 crore IPO during the first months of 2015.
The Group is one among the several IPO aspirants in the healthcare sector, which are backed by international PE funds. Other planned IPOs in the sector are by Dr. Lals Pathlabs, Metropolis, Thyrocare etc.
Analysts are of the opinion that all these healthcare firms are approaching the public issue space, to take advantage of the current bull market trend in India. The improving market sentiment in India has ensured that healthcare players like Aster will get a much better valuation from the Indian public rather than international PE funds, as of now.
Aster promoter Dr. Azad Moopen was reportedly more bullish about PE funds during the early part of the current year, but now seems to favour a public issue. Aster which shifted its headquarters from Dubai to India only recently, was also said to be more keen on a listing at London, but now seems to prefer an IPO in India.
Aster DM Healthcare, a multinational chain of hospitals, clinics, and pharmacies, is planning for its IPO soon. Promoted by Dr. Azad Moopen, a medical entrepreneur hailing from Kerala and who made his fortune in the Middle East, Aster DM Healthcare is reportedly eyeing a Rs. 1200 crore IPO during the first months of 2015.
The Group is one among the several IPO aspirants in the healthcare sector, which are backed by international PE funds. Other planned IPOs in the sector are by Dr. Lals Pathlabs, Metropolis, Thyrocare etc.
Analysts are of the opinion that all these healthcare firms are approaching the public issue space, to take advantage of the current bull market trend in India. The improving market sentiment in India has ensured that healthcare players like Aster will get a much better valuation from the Indian public rather than international PE funds, as of now.
Aster promoter Dr. Azad Moopen was reportedly more bullish about PE funds during the early part of the current year, but now seems to favour a public issue. Aster which shifted its headquarters from Dubai to India only recently, was also said to be more keen on a listing at London, but now seems to prefer an IPO in India.
Interview requests sent to Dr. Azad Moopen for some clarifications for this story, were not answered at the time of publishing this story.
Though it is too early to analyze whether Aster DM Healthcare IPO will be attractive - as the firm is yet to file its Draft Red Herring Prospectus (DRHP) - the firm’s growth and capabilities are indeed impressive.
Aster DM Healthcare claims to be India’s third largest hospital chain, behind Apollo and Fortis, and is reportedly eyeing a valuation that will be double that of Fortis. However, unlike its bigger listed peers, Aster doesn’t have any significant presence in India’s tier-1 cities of Delhi, Mumbai, Kolkata, Chennai, Bangalore, & Hyderabad.
Aster’s largest presence is in the tier-2 city of Kochi in Kerala, but this hospital - Aster Medcity - is a facility that can compete with India’s best, in terms of infrastructure and facilities.
The Group’s second biggest facility in India is MIMS of Kozhikode, which is again a tier-2 city in Kerala, and besides that, Aster owns only 54% stake in MIMS.
However, the Dr. Moopen led Group has been growing its India network aggressively through the inorganic route, during the past few months. It has been buying smaller hospitals in Pune, Kohlapur, Bangalore, & Hyderabad to beef up its India presence.
But Aster’s biggest edge while going for the IPO will be its Middle East presence. The Group operates over 3,000 beds across hospitals in UAE, Qatar, Saudi Arabia, Oman, and other GCC nations, as well as in India.
According to Dr. Moopen, the Aster Group has been growing its topline and operating profit at a clip of 45% during the past few years, and is known to have a profit margin of around 18%.
Aster’s IPO will probably see the partial to full exit of its PE backers Olympus Capital and India Value Fund.
Whether the IPO will be attractive will be known only after the filing of DRHP, and the declaration of the offer price. It remains to be seen whether the promoters will leave some money on the table for public investors, so that there is a margin of safety for their investments.
Aster DM Healthcare claims to be India’s third largest hospital chain, behind Apollo and Fortis, and is reportedly eyeing a valuation that will be double that of Fortis. However, unlike its bigger listed peers, Aster doesn’t have any significant presence in India’s tier-1 cities of Delhi, Mumbai, Kolkata, Chennai, Bangalore, & Hyderabad.
Aster’s largest presence is in the tier-2 city of Kochi in Kerala, but this hospital - Aster Medcity - is a facility that can compete with India’s best, in terms of infrastructure and facilities.
The Group’s second biggest facility in India is MIMS of Kozhikode, which is again a tier-2 city in Kerala, and besides that, Aster owns only 54% stake in MIMS.
However, the Dr. Moopen led Group has been growing its India network aggressively through the inorganic route, during the past few months. It has been buying smaller hospitals in Pune, Kohlapur, Bangalore, & Hyderabad to beef up its India presence.
But Aster’s biggest edge while going for the IPO will be its Middle East presence. The Group operates over 3,000 beds across hospitals in UAE, Qatar, Saudi Arabia, Oman, and other GCC nations, as well as in India.
According to Dr. Moopen, the Aster Group has been growing its topline and operating profit at a clip of 45% during the past few years, and is known to have a profit margin of around 18%.
Aster’s IPO will probably see the partial to full exit of its PE backers Olympus Capital and India Value Fund.
Whether the IPO will be attractive will be known only after the filing of DRHP, and the declaration of the offer price. It remains to be seen whether the promoters will leave some money on the table for public investors, so that there is a margin of safety for their investments.
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