To open 10 new hospitals in India and Gulf
Kochi-based Aster DM Healthcare, which announced a Rs 980-crore initial share sale, announced a $130-million capex to open 10 new hospitals in India and the Gulf.
“As part of our expansion plan, we have decided to invest around $130 million to set up 10 new hospitals in India and the Gulf Cooperation Council markets,” Azad Moopen, CMD, Aster Healthcare told reporters in Mumbai announcing the initial public offer (IPO).
He said of the 10 new hospitals, five will come in Bengaluru (two), Thiruvananthapuram, Coonoor and Kozhikode, which will add 1,700 beds.
The company will also open five new hospitals and a number of clinics and pharmacies in the GCC countries.
“Historically, our business growth has been driven by establishing new centres and hospitals through expansion and acquisitions; and we expect these to continue to be the key drivers for our future growth,” he said.
The hospital chain generates 80 per cent revenue from the latter (GCC countries) today, he said, adding “but we see significant opportunities in India especially after the budget that has given lot of thrust on healthcare. We are now looking at entering small towns.”
As of September 2017, Aster had 17,408 employees, including 1,417 full-time doctors, 5,797 nurses, 1,752 paramedics and 8,442 other employees including pharmacists.
Aster operates in India, the Philippines, Jordan and all the GCC states comprising the UAE, Oman, Saudi Arabia, Qatar, Kuwait and Bahrain.
Aster also has 10 hospitals spanning Kochi, Kolhapur, Kozhikode, Kottakkal, and Wayanad in Kerala, and Vijayawada, Guntur and Hyderabad in AP/Telengana and Bengaluru.
Meanwhile, Aster has fixed a price band of Rs 180-190 per equity share for its initial share -sale to raise around Rs 980 crore. The issue opens on February 12 and closes on 15.
The IPO comprises fresh issue of equity shares worth up to Rs 725 crore and an offer for sale of up to 13,428,251 scrips by the promoters Union Investments.
Proceeds of the issue will be used towards repayment of debt, purchase of medical equipment, and for other general corporate purposes.