Aster DM IPO sees 45% subscription on second day of share sale
Mumbai: The Rs980 crore initial public offering (IPO) of Aster DM Healthcare Ltd, which runs hospitals in India and West Asia, witnessed an overall subscription of 45% on Wednesday, the second day of its share sale.
On the first day on Monday, the Aster DM IPO was subscribed 26%.
According to data from stock exchanges, as of 5pm, the portion of shares reserved for institutional investors in the Aster DM IPO was subscribed 51%, while that set aside for retail and non-institutional investors was subscribed 50% and 24%, respectively.
Aster DM has set a price band of Rs180-190 per share for the IPO. The offer will close on 15 February.
The Aster DM IPO comprises a fresh issue of shares of Rs725 crore and an offer for sale of 13.42 million shares by promoter Union Investments Pvt. Ltd.
At the upper end of the price band, the share sale will fetch promoters about Rs255 crore.
Proceeds from the fresh issue will be utilized to repay debt, purchase medical equipment and meet general corporate expenses.
On Friday, Aster DM raised Rs294 crore by selling shares to eight institutional investors as part of its anchor book allocation. Institutional investors that participated in the anchor book allocation include First State Investments International Ltd, DB International Asia Ltd, SBI Pharma Fund and Societe Generale, among others.
Founded by Dr. Azad Moopen in 1987 as a single clinic, Aster DM’s portfolio of healthcare facilities, as of 30 September, consists of nine hospitals, 90 clinics and 206 retail pharmacies in the Gulf Cooperation Council (GCC) states; 10 multi-specialty hospitals and seven clinics in India; and one clinic in the Philippines.
In 2016-17, the company reported a revenue of Rs5,931.29 crore, an increase of 13% from the previous fiscal. It reported a profit of Rs266.47 crore in 2016-17.
Kotak Mahindra Capital Co. Ltd, Axis Capital Ltd, Goldman Sachs (India) Securities Pvt. Ltd, ICICI Securities Ltd, JM Financial Institutional Securities Ltd and YES Securities (India) Ltd are managing Aster DM IPO.
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