GPs set for partial exits in India's Aster DM Healthcare IPO

The IPO will consist of up to 21.6 million new shares and an offer for sale of up to 36 million shares from current shareholders; the latter includes 19 million shares held by Olympus, 4.8 million from IVFA and 12 million from promoter Union Investments. IVFA currently holds 49.6 million shares, while Olympus has 102 million. Pricing for the shares has not been announced.

According to a filing, Aster DM will use the proceeds from the fresh issue primarily for pre-payment of debt, with INR3.5 billion allocated to this purpose, and to purchase medical equipment, for which INR2.6 billion has been allocated. The remainder will be used for general corporate purposes.

Founded in Dubai in 1987, Aster DM is now one of the largest private healthcare service providers in Asia. As of March 2016 it operated 280 hospitals, clinics and pharmacies in India, the United Arab Emirates, Oman, Saudi Arabia, Qatar, Kuwait, Bahrain, Jordan and the Philippines. The company employs nearly 13,000 people including doctors, nurses, pharmacists and paramedics.

IVFA and Olympus have invested in Aster DM across multiple rounds of funding. The company raised INR1.75 billion from IVFA in 2008, with a INR5 billion commitment from Olympus following in 2012. The two firms invested $65 million together in 2014.

Aster DM reported INR39 billion in revenue for the year ended March 2015, up from INR29 billion the year before; over the same period net profit rose from INR3.1 billion to INR3.8 billion. For the nine months ended December 2015, the company recorded INR37 billion in revenue and profit of INR2.2 billion.

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• Topics
• South Asia
• Healthcare
• IPO
• India
• Olympus Capital Holdings Asia
• India Value Fund Advisors
• Exit