Aster DM Healthcare Ltd. listed at a discount of 4.16 percent at Rs 182.10 per share on the BSE Ltd., compared to its issue price of Rs 190 apiece. The stock fell as much as 7.13 percent to Rs 176.45 thereafter.
The healthcare services provider's Rs 980-crore initial public offering was subscribed 1.3 times on the final day of bidding. The portion reserved for qualified institutional buyers was subscribed 2.14 times the number of shares on offer, while the retail investors' portion was subscribed 1.13 times. The non-institutional portion received bids for 0.58 times the number of shares allotted.
Aster DM has 323 operating facilities in nine nations, including 19 hospitals with 4,754 beds, of which 3,584 were operational as of Sept. 30. It's building or expanding 10 hospitals to add about 727 beds.
It employs 17,408 people, including 1,417 full-time doctors, 5,797 nurses, 1,752 paramedics and 8,442 other employees. In addition, it has 891 ‘fee for service' doctors working across various specialities.
Valuations
Earnings per share, after issuing new shares, for the year ended March 2017 works out to Rs 3.9. At the upper end of the price band, shares prices is 48.3 times its earnings, according to BloombergQuint's calculations.
Financial Highlights
- The net worth of the company as of Sept. 30 was close to Rs 1,813 crore, translating into a book value of Rs 36 a share after issuing new stock.
- Revenue rose at an annualised rate of 32.5 percent and new profit grew at 21.3 percent in five years to March 2017. The company had an exceptional gain of Rs 596 crore in the last financial year, helping it post profit.
- In the half year ended September, revenue and net profit stood at Rs 3,122.5 crore and Rs 76 crore, respectively.
- Earnings before interest, tax and depreciation and amortisation grew at an annualised rate of 6.8 percent, while Ebitda margin contracted by 770 basis points in the last five years to 5.6 percent.
- For the first half, Ebitda and Ebitda margin stood at Rs 178 crore and 5.7 percent, respectively.
- Aster DM has a high total debt of close to Rs 3,661 crore, which would fall as the company is looking to repay Rs 564 crore from its IPO proceeds.
Also Read: Aster DM Healthcare Expects Third Of Its Revenue From India In 3-4 Years
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
