India's PE-backed Aster DM refiles for IPO

The offering will see Aster sell an undisclosed amount of new shares for up to INR7.75 billion ($121 million), according to a prospectus. Olympus will sell up to 4.7 million shares while promoter group Union Investments Private will sell up to 11.7 million shares. Pricing has not been announced.

In Aster DM’s earlier filing Olympus had proposed to sell 19 million shares and India Value Fund Advisors (IVFA), now True North, planned to sell 4.8 million. According to the new prospectus, True North is no longer planning to exit and will retain its entire holding of 47 million shares. Olympus will retain 101 million shares.

As in the previous filing, Aster will use the proceeds of the offer primarily to pay down debt, with INR5.6 billion intended for this purpose. Another INR1.1 billion will go towards the purchase of medical equipment, while the remainder will be used for general corporate purposes.

Aster DM decided earlier this year to defer its IPO amid concerns over the valuation of its overseas businesses, which account for a large part of its revenue. The company had 316 operating facilities across the Middle East, India, and the Philippines as of March, including 18 hospitals with more than 4,600 beds. It also operates the largest chain of retail pharmacies in the United Arab Emirates.

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

Aster DM reported INR59 billion in revenue from operations for the year ended March 2017, up from INR52 billion the year before. Over the same period, net profit grew from INR82 million to INR2.7 billion.

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• Topics
• South Asia
• Healthcare
• IPO
• India
• Olympus Capital Holdings Asia
• True North
• Exit