About the Company:
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.
Company currently operates in all of the GCC states, which comprise the United Arab Emirates, Oman, Saudi Arabia, Qatar, Kuwait and Bahrain,in Jordan (which is classified as GCC Countries), in India and the Philippines.
Company’s GCC operations are headquartered in Dubai, United Arab Emirates and their Indian operations are headquartered in Kochi, Kerala.
Company had 17,240 employees as of March 31, 2017, including 1,269 full time doctors, 5,692 nurses, 2,186 paramedics and 8,093 other employees (including pharmacists). In addition,they had 934 “fee for service” doctors working across various specialities in their hospitals in India as of March 31, 2017.
Company operates in multiple segments of the healthcare industry, including 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”.
In August 2014,Company had 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.
They have a diversified portfolio of healthcare facilities, consisting of 7 hospitals, 89 clinics and 202 retail pharmacies in the GCC states, 11 multi-specialty hospitals and 6 clinics in India, and 1 clinic in the Philippines as of March 31, 2017.
Company’s hospitals in India are located in Kochi, Kolhapur, Kozhikode, Kottakkal, Bengaluru, Vijayawada, Guntur, Wayanad and Hyderabad and are generally operated under the “Aster”, “MIMS”, “Ramesh” or “Prime” brands.Company’s clinics in India are located at Kozhikode, Eluru and Bengaluru.
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Overview of Company’s Brands & Geographic Presence:
Revenue Contribution Region wise & Segment wise: (in crores)
| Region | Fiscal 2017 | % wise Revenue Contribution |
|---|---|---|
| GCC states (Middle East) | 49,79.16 | 83.96% |
| India | 9,49.99 | 16.01% |
| Other regions (Philippines) | 2.12 | 0.03% |
| Total | 59,31.28 | 100% |
| Business segments | ||
| Hospitals | 27,04.73 | 45.59% |
| Clinics | 16,22.91 | 27.36% |
| Pharmacies | 15,97.76 | 26.94% |
| Others | 5.87 | 0.098% |
| Total | 59,31.28 | 100% |
Management Team:
- Dr.Mandayapurath Azad Moopen (Designation: Chairman and Managing Director)
- Dr.T.J. Wilson (Designation: Non-Executive Director)
- Mr.Anoop Moopen (Designation: Non-Executive Director)
Objectives of the Issue:
- Repayment and/or pre-payment of debt.
- Purchase of medical equipment.
- General corporate purposes
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Repayment and/or pre-payment of debt | 5,57.31 |
| Purchase of medical equipment | 1,10.31 |
| Net Proceeds | 667.62 crores |
Positives for the Company:
Well diversified portfolio of service offerings to leverage multiple market opportunities.
They provide healthcare services in the United Arab Emirates, Oman, Saudi Arabia, Qatar, Kuwait and Bahrain, which comprise all of the GCC states, in Jordan (which is classified as part of their GCC operations)
Track record of operating and financial performance and growth.
Company has increased the bed capacity of their hospitals from 1,419 beds as of March 31, 2013 to 4,651 beds as of March 31,2017.
Company’s ARPOB (Average Revenue Per Occupied Bed) in the GCC states increased from Rs.93,264 in fiscal 2013 to Rs.1,30,026 in fiscal 2017 and ARPOB in India increased from Rs.8,130 to Rs.22,175 during the same period.
Well positioned to cater to the Inbound Patients from Midle East.
Aster Medcity Kochi and Aster CMI Bengaluru hospitals are well-connected for both domestic and international travel to be preferred destinations for medical value travel.
For instance, Aster Medcity Hospital in Kerala which commenced operations in August 2014, receives about 2.37% of patients from Oman with ARPOB of Rs.57,707 for the year ended March 31, 2017, whereas the average ARPOB for their India hospitals is Rs.22,175 for the year ended March 31, 2017.
Increasing presence by way of greenfield expansions.
They also plan to build or expand 5 hospitals in India within the next 4 years to add 1,372 beds to their total bed capacity, with a focus on building and expanding facilities in Tier I and II cities such as Bengaluru, Trivandrum, Kannur and Kozhikode.
They have entered into strategic partnerships for the Kolhapur, Wayanad, Vijayawada and Hyderabad facilities to achieve the multiple objectives of rapidly expanding their operations in India.
Company is evaluating a proposal to lease a hospital with 300 beds in Bengaluru and a proposal to lease a hospital in Chennai, and seeking to expand the operations by acquiring additional hospitals in Mumbai, Pune, Chennai and Kolkata.
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 30th Sept 17 |
|---|---|---|---|---|---|---|
| Revenue | 1938.76 | 2889.56 | 3899.0 | 5276.16 | 5967.90 | 3141.37 |
| Net Profit | 91.78 | 177.78 | 272.10 | 8.2 | 266.74 | (-82.7) |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Aster DM Healthcare Ltd | 10 | 4.29 | 44.39 | 10.59 | 40.50 |
| Apollo Hospitals Ltd | 5 | 15.88 | 73.5 | 2.3 | 281.68 |
| Fortis Healthcare Ltd | 10 | 9.19 | 19.6 | 7.6 | 121.89 |
| Narayana Hrudayalaya Ltd | 10 | 4.1 | 76.5 | 8.6 | 47.13 |
| Healthcare Global Enterprises Ltd | 10 | 2.69 | 85.7 | 5.3 | 50.47 |
| Shalby Hospitals Ltd | 10 | 7.16 | 34.63 | 23.54 | 30.40 |
Note: Aster DM Healthcare derives around 84% of the revenue from Middle Eastern Countries (GCC) and only 16% revenue is from India.
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 12th February 2018 |
| Issue Closes on:. | 15th February 2018 |
| Issue Price | Rs.180 – 190 |
| Face Value | Rs.10 |
| Minimum Lot | 75 shares |
| Minimum Investment | Rs.14,250 |
| Issue Constitutes | 11.68% |
| Issue Size | Rs.980.13 cr ($153 million ) |
| Market Cap | Rs.8386.20 cr ($1.31 billion) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 3,81,57,895 |
| Equity Shares Offered (OFS) | 1,34,28,251 |
| Total Equity Shares Offered (Fresh + OFS) | 5,15,86,146 |
| Equity Shares Prior | 4,03,220,324 |
| Equity Shares after the issue | 44,13,78,219 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 22th February 2018 |
| Initiation of Refunds | on or Before 22th February 2018 |
| Credit of Equity Shares: | on or Before 23rd February 2018 |
| Listing Date: | on or Before 26th February 2018 |
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Subscription Details:
| (Subscription-Category-Wise (no. of times) Till time : 05:45 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 1,05,17,400 | 0.54 | 0.50 | 2.1 |
| NII | 80,55,905 | 0.18 | 0.23 | 0.55 |
| Retail | 1,87,97,110 | 0.16 | 0.47 | 1.18 |
| Employee | ———— | —– | —– | —- |
| TOTAL | 3,73,70,415 | 0.27 | 0.43 | 1.31 |
Anchor Investor Participation Update:
- Aster DM Healthcare Ltd raised Rs.294 crore by selling shares to Anchor Investors.
- Shares were allocated to 7 anchor investors at Rs.190 per share.
- Prominent names that participated in the anchor book allocation include SBI MF, Sundaram MF, Karst Peak Asia Master Fund, DB International Asia, Societe Generale, Caisse De Depot Et Placement Du Quebec – First State Investments International and First State Indian Subcontinent Fund.
IPO Valuation parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 4.29 | 44.39 | 10.59% | 40.50 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 20% |
Grey Market Premium :
| Date | IPO | Price Band | Grey Market premium | Kostak Rates |
|---|---|---|---|---|
| 22/02/18 | Aster DM Healthcare Ltd | Rs.180 – 190 | Rs.09 – 12 | 800 – 850 |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/PublicIssue/ |
| Company Contact Info: |
|---|
| Aster DM Healthcare Limited IX/475L, Aster Medcity Kuttisahib Road Near Kothad Bridge South Chittoor P.O. Cheranalloor, Kochi – 682 027 Ernakulam, Kerala, India Tel: +91 484 6699 999 E-mail: investors@asterdmhealthcare.com Website: www.asterdmhealthcare.com |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C-101,1st Floor, 247 Park Lal Bahadur Shastri. Marg, Vikhroli (West), Mumbai – 400 083 Maharashtra, India Tel: +91 22 4918 6200 Fax: +91 22 4918 6195 E-mail: adhl.ipo@linkintime.co.in Investor grievance email: adhl.ipo@linkintime.co.in Website: www.linkintime.co.in |
