Aster DM Healthcare debuts at 4.2% discount at Rs 182.1- BSE

Private healthcare provider Aster DM Healthcare made a tepid debut on the bourses on Monday, with the shares listing at a 4.2% discount at Rs 182.1 on BSE to as compared to DM Health’s issue price of Rs 190. Aster DM share debut on BSE follows Aster DM Healthcare’s IPO earlier this month, which was subscribed 1.22 times, earlier this month, with investors bidding for about 4.81 crore shares as against the issue size of 3.73 crore shares. The QIBs registered considerable demand, bidding for 2.2 crore shares against the 1.05 crore on offer. The non-institutional investors were had showed muted response, bidding for just 44.57 lakh shares of the 80.55 lakh shares, while retail investors had bid for 2.16 crore shares against the 1.87 crore shares reserved for them.

Private healthcare service provider, Aster DM Healthcare IPO (Initial Public Offer) in which the company had raised up to Rs 980 crore had opened for subscription on February 12 and bidding closed for Aster DM shares closing on 15th February. The company operates in multiple GCC (Cooperation Council for the Arab States of the Gulf) states based on numbers of hospitals and clinics. Aster DM Healthcare operates various hospitals, clinics and retail pharmacies and provides healthcare services in several GCC states through notable brands ‘Aster’, ‘Medcare’ and ‘Access’.

According to the company’s prospectus, the proceeds the issue issue will be utilised towards repayment and/or pre-payment of debt; purchase of medical equipment; and general corporate purposes. The company will not receive any proceeds from offer for sale.

Many brokerages had earlier advised to avoid the issue citing steep valuations. HEM Securities said that even though the company’s business looks attractive but losses in H1FY18 with weak financial performance in FY17 fails to infuse optimism in company, recommending an “Avoid” on issue of Aster DM Healthcare. On similar lines, Angel Broking noted that the pre-issue EV/EBITDA works out to 32.5x its 1HFY2018 annualized EBITDA (at the upper end of the issue price band), which is higher compared to its peers like Apollo Hospitals Enterprise (trading at PE 22.3x -1HFY2018 annualized EBITDA). Further Angel Broking said that the last three years’ financial performance including 1HFY18 numbers doesn’t provide confidence. “Hence, we recommend Neutral rating on the issue,” the firm had said.

Ref. : http://www.financialexpress.com/market/tepid-listing-aster-dm-healthcare-lists-at-4-2-discount-at-rs-182-1-on-bse/1079272/ --- Dated: Feb'26,2018.