The initial public offering (IPO) of Aster DM Healthcare was subscribed 1.22 times on Thursday — the final day of public issue — with investors bidding for about 4.81 crore shares of the 3.73 crore shares on offer. The qualified institutional buyers bid for 2.2 crore shares against the 1.05 crore on offer. High Net worth Individuals (HNIs), however, bid for just 44.57 lakh shares of the 80.55 lakh shares, while retail investors offered bids for 2.16 crore shares against the 1.87 crore shares offered. The stock will be listed on the exchanges on February 26.
“We believe the IPO is fairly priced at current risk return matrix. With plan of strong capex for owned hospitals, increasing opex with setting up of new hospitals on lease model and longer gestation period, investment in Aster will be beneficial in the long term. We recommend subscribe, with a long term investment horizon,” said Prabhudas Lilladhar in a report.
On February 9, Aster DM Healthcare finalised allocation of 1.34 crore shares at Rs 190, aggregating to `294.04 crore to 8 anchor investors. The anchor investors include First State India Subcontinent Fund, SBI Pharma Fund, SBI Magnum Tax Gain Scheme, Sundaram Mutual Fund, DB International Asia, Karst Peak Asia Master Fund and Société Generale. Global coordinators and book running lead managers to the issue are Kotak Mahindra Capital Company, Axis Capital and Goldman Sachs.
Aster DM Healthcare has planned to raise up to Rs 980 crore from its initial public offering (IPO) .The company has set a price band of Rs 180 to Rs 190 per share. The IPO of Aster DM Healthcare will raise `725 crore through fresh issue of shares and Rs 255.10 crore through an offer for sale by the promoters. The company proposes to utilise the net proceeds of the fresh issue for repayment of debt worth `564 crore, purchase of medical equipments worth Rs 110 crore and for general corporate purposes.