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 1.33 times on Thursday, the last day of its share sale.
According to data from stock exchanges, as of 6pm, the portion of shares reserved for institutional investors in the IPO was subscribed 2.14 times, while that set aside for retail and non-institutional investors was subscribed 1.19 times and 0.58 times, respectively.
Aster DM had set a price band of Rs180-190 per share for the initial public offering. The initial public offering 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 the promoters about Rs255 crore.
Proceeds from the fresh issue will be utilized to repay debt, purchase medical equipment and meet general corporate expenses.
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-speciality hospitals and seven clinics in India; and one clinic in the Philippines.
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 the Aster DM IPO.
Aster DM is the latest in a series of healthcare firms, including Shalby Ltd, Alkem Laboratories Ltd, Dr Lal PathLabs Ltd, Narayana Hrudayalaya Ltd, Thyrocare Ltd and Eris Lifesciences Ltd, that have tapped the capital markets.