India: Olympus, IVFA to part-exit in Aster DM Healthcare’s $300m IPO

Aster DM Healthcare Ltd, which operates a chain of hospitals and clinics in India and West Asia, has filed papers for its initial public offering (IPO).

The Kochi-based healthcare firm has filed draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) on Friday to raise up to Rs 2,000 crore.

Aster DM will join several other healthcare companies which raised money through IPO in the past one year. These include Healthcare Global, Dr Lal PathLabs, Thyrocare and Narayana Hrudayala.

The company’s public issue comprises fresh share sale of Rs 609-812 crore and offer for sale (OFS) by promoters and both PE firms — Olympus Capital Asia Investments Ltd and IVF Trustee Company Pvt Ltd for Rs 1188-1291 core.

Olympus had invested $100 million in Aster DM in 2012 while IVF had put in $50 million in two rounds in 2008 and 2011.

The healthcare firm will use the money for buying medical equipment of Rs 255 crore, repaying debt of Rs 354 crore and for other general purposes.

Aster DM has appointed Kotak Mahindra Capital, Bank of America Merrill Lynch, Goldman Sachs, Edelweiss, ICICI Securities, JM Financial and SBI Capital Market as its bankers.

The healthcare firm has been looking for public listing for more than last two years. It is looking for a market capitalisation of over Rs 16,000 crore and also eyeing to become second most valued hospital chain in the country.

Last month, Aster DM acquired Ajay Piramal Group-promoted India Venture Advisors‘ 25 per cent stake in the Vijayawada-headquartered healthcare chain Ramesh Hospitals for Rs 110 crore (around $16 million), as per an Economic Times report.

Also Read:

India: General Atlantic, Temasek in talks to buy stake in Aster DM Healthcare

India: Healthcare scrips Alkem, Dr Lal Pathlabs list at robust premium on debut

India: Healthcare IPOs get a thumbs up as investors lap up shares

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.