VALUATION ISSUES: ASTER HEALTH SET TO REFILE DRHP

MUMBAI: Aster DM Healthcare Ltd, which runs hospitals in India and West Asia, is set to re-file its draft share sale documents sometime this week or the next, after concerns over valuation of its overseas business delayed its IPO plans, said two people aware of the development.

Aster DM had filed its draft red herring prospectus (DRHP) for an initial public offering (IPO) in June last year and had received approval from the Securities and Exchange Board of India in November.

“It can happen within this week or early next month,” said one of the two people cited above, requesting anonymity.

In its earlier DRHP, Aster DM disclosed that in Saudi Arabia— where a substantial portion of its revenue is derived from patients referred and funded by the ministry of health—a fall in oil prices and the economic conditions have had a direct impact, thereby resulting in an increase in receivables from the ministry of health. To counter this, the company said it was exploring other business opportunities in Saudi Arabia.

The company was earlier looking to raise around $300 million (through a mix of primary and secondary share sale) from the IPO, which would have valued the company at $2.5 billion.

The re-filed DRHP will, however, see the company aim for a reduced fund-raising and at a lower valuation, which could be at least 20% lower than the earlier targeted valuation, said the second person cited above, also requesting anonymity.

An email sent to Aster DM Healthcare on Wednesday did not elicit any response.

Aster DM’s operations in India primarily consist of hospitals.