IPO Funds of Aster DM Healthcare will Pay off Debt in India, Overseas
On Monday, Aster DM Healthcare made a lacklustre market debut. It is said that the company is searching for the opportunity to pay off its debt in India and overseas using the proceeds of its Rs 980 crore IPO.
This corporation is well known to provide health care and it was founded in 1987 by Azad Moopen. The company is privately held. The headquarters of the company are located in Dubai, United Arab Emirates.
Experts claimed that the stock listing at Rs 182.10 was at 4.16 percent discount to its issue price of Rs 190. The company has offered a sale offer of Rs 980-crore share. It includes Rs 725 crore as fresh money and Rs 255 crore through offer for sale. The company stated that the fresh money will be used for retiring debt.
The CMD of Aster DM Healthcare, Azad Moopen stated that the company is having a burden of debt in India as well as overseas. However, the debt in India will be retired soon. The debt in India is the high cost. Approximately, Rs 110 crore is for their equipment for the new hospitals coming up in India. He also stated that the rest of the amount will be used for general corporate purposes.
The company has well-marked its presence in multiple Gulf Cooperation Council (GCC) states such as the UAE, Oman, Saudi Arabia, Qatar, Kuwait and Bahrain. However, in India, the company is known to operate with Malabar Institute of Medical Sciences (MIMS) hospital in Kozhikode in Kerala.
Azad Moopen also discussed its future growth strategy. He informed in detail that how business in GCC countries has allowed the company to grow at a faster pace. The CMD of the company also stated that the GCC is generating a good 80 percent of revenue. GCC is the private healthcare service provider.
The technical analysts are of the view that National Healthcare Protection Scheme was announced in the Budget2018, and this will definitely generate more opportunities for healthcare companies in India.
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