Aster DM Healthcare re-files for IPO

Mumbai: A draft red herring prospectus (DRHP) has been re-filled by Aster DM Healthcare with a reduced offer size of its initial public offering (IPO).

Aster DM Healthcare Ltd runs 11 multi-speciality hospitals and 6 clinics in India, 7 hospitals, 89 clinics and 202 retail pharmacies in the GCC states, and one clinic in the Philippines as of 31 March.

Livemint reports that the company is looking to raise Rs 775 crore in primary capital through a fresh issue of shares and the company will use the proceeds to repay part of its debt and to purchase medical equipment.

The reason for the reduced offer size was to account for the impact of Aster DM’s main revenue source which is the referral and funding of patients by Saudi Arabia’s ministry of health due to the changes in the economic conditions in Saudi Arabia and lower oil prices ministry has delayed payments.

In the first DRHP, company had proposed the offer for sale of 36 million shares in which Olympus Capital planned to sell 19 million shares alone and True North, another private equity investor in the firm planned to sell around 4.8 million shares. But now the two Aster DM and Olympus Capital are collectively selling around 16.34 million shares as True North has decided to not sell its stake.

It is reported that Olympus Capital owns 26.18 percent stake, while True North owns around 11.54 percent stake in the company.

Syndicate will manage the IPO while three investment banks-Bank of America Merrill Lynch, Edelweiss Financial Services Ltd and SBI Capital Markets Ltd had been dropped by the company with the replacement of Axis Capital and Yes Securities.