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Aster DM Healthcare IPO Prospectus
What Are Analysts Saying?
Aster DM IPO: Subscribe the issue for long term gains
Nirmal Bang, 14 Feb 2018
At higher band the issue is offered at 19.6x FY18E calculated EV/EBITDA. We like the company’s strong brand equity and consistent track record. We recommend investors to subscribe the issue for long term gains.
Aster DM Healthcare IPO: Our recommendation “Avoid”
Rudra Shares and Stock Brokers, 12 Feb 2018
Moreover, looking at the financials of Aster ,though the business looks attractive & also Government focus on health sector in the current budget sounds positive for Aster but losses in H1FY18 with weak financial performance in FY17 & high valuation at current level, we recommend to Avoid the issue.
IPO Note: Aster DM Healthcare
Achiievers Equities, 12 Feb 2018
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 Repayment and/or pre-payment of debt, Purchase of medical equipment and General corporate purposes.
Aster DM Healthcare IPO: High valuation at current level fails to infuse optimism; Avoid
Hem Securities, 12 Feb 2018
Company is bringing the issue at price band of Rs 180-190 /sh at EV/EBIDTA multiple of 34-35. Although co’s business looks attractive but losses in H1FY18 with weak financial performance in FY17 & high valuation at current level fails to infuse optimism in company , hence we recommend “Avoid” on issue .
Aster DM Healthcare IPO: Subscribe to the issue from a long term perspective
SPA Securities, 12 Feb 2018
Aster DM Healthcare is one of its kind complete healthcare provider, which caters to patients through hospitals, clinics and pharmacy stores, which are vertically and horizontally integrated. Hospitals trade at TTM EV/Sales of 2.5x - 3.0x. The company is trading at a FY17 EV/Sales of 1.9x. We recommend SUBSCRIBE to the issue from a long term perspective.
Issue Details
Open Date: 12 Feb 18
Close Date: 15 Feb 18
Offer Price: Rs. 180
Issue Size: Rs. 725 Cr
Min Application Amount:
Rs. 14040
Min bid (No. of shares): 78
Listing Exchanges: BSE, NSE
About the Company
"Incorporated in 1987, Aster DM Healthcare Ltd is Kochi, Kerala based healthcare service provider with operations in GCC states (United Arab Emirates, Oman, Saudi Arabia, Qatar, Kuwait and Bahrain), India and the Philippines. Company’s Indian operations are headquartered in Kochi, Kerala.

Aster DM Healthcare operates in multiple segments of the healthcare industry including hospitals, clinics and retail pharmacies. Company operates hospitals and clinics, pharmacies, diagnostic centers, educational institutions, and healthcare management and healthcare support systems. Company provides healthcare services to patients across economic segments under brand names including ""Aster"", ""Medcare"" and ""Access"".

Aster's healthcare facilities consist 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 as of September 30, 2017. Aster's 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).

Aster'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 and Prime brands."
Objective of the Issue
"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:

1. Repayment and/or pre-payment of debt;
2. Purchase of medical equipment; and
3. General corporate purposes."
Subscription Details
Investor Category No of times
Qualified Institutional Investor -
Non Institutional Investor -
Retail Investor -
Total -