DM Healthcare planning IPO to raise $ 250 million: Dr Azad Moopen

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Aster DM Healthcare, a Dubai based world class healthcare service provider, now plans a big expansion in India, West Asia and Africa. Dr. Azad Moopen, chairman and managing director of the group told Business Standard that the Group is all set to go for an IPO in next year and to be listed on the London and Indian Stock Exchanges.

The company currently manages over 156 network units consisting of hospitals, medical centers, diagnostic centers and pharmacies, providing healthcare services and consultancy. It now owns six brands — ASTER, Medcare, Access, MIMS, WIMS and ASTER MedCity and having 11 hospitals across GCC and India. Two more hospitals will be launched soon, he added. Excerpts from an exclusive interview with Business Standard.

Do you plan to go for IPO? When this will happen and what fund you plans to mobilize ? What is your plans from IPO receipts?

Yes, we do plan to go for an IPO early next year. We are mostly likely to go for listing on Indian exchanges to raise US $200-250 million.

How does your company plans to utilize the PE funds you had gathered, for further development?

The initial funds which we received was used mainly for Aster Medcity, a world class hi-tech healthcare destination which is currently being developed at Cheranallur in Kochi. The recent development, on PEs buying 5 per cent more in Aster DM Healthcare, will be using the for organic expansion to take care of the industry lead growth in India and in the West Asia markets.

What are your plans for Kochi Medcity? When this will be commissioned?

Aster Medcity, is an integrated medical township that is dedicated to taking healthcare to international standards in India. This green-field venture, with an investment of US $300 million (Rs. 21.5 billion) will not only support the medical requirements of Kerala state and country, but also provide a venue for medical tourism to the country from South Asian countries.

Spread over 40 acres, Aster Medcity is built across 1 km waterfront. In the initial Phase, Aster Medcity will open with a 575 bed Quaternary Care Hospital with 9 Centres of Excellence. In phase ll, an additional 500 beds will be added along with a Medical Convention Centre, a 4-star Hotel and Apartments.

The project will be launched by July/August 2014. We have started with in-patient and out-patients departments. A formal announcement on this will be done by end of this month.

Do you plan projects in other locations in Kerala ? Give details.

Yes, we are in the process of expanding in Kerala under the Malabar Institute of Medical Sciences [MIMS] brand. We have identified South and Central Kerala for expansion viz, in Kannur and Perinthalmanna in Malappuram district.

What are your plans for other Indian states?

Apart from setting up Aster Medcity, we are also looking at expanding pan-India. We are in the process of acquiring hospitals in Bangalore, Hyderabad and Mumbai. The Bangalore announcement is in the final stages and will be disclosed very soon.

How do you plan your expansion in GCC countries?

Aster DM Healthcare is working ahead to be at forefront of the healthcare industry. The Group is currently in the midst of an exponential expansion, and we have about 1200 beds under construction. In the next 12 years, the Group aims to be a global player in healthcare. The strategy is, not just to be in West Asia and India, but to spread its wings onto several other geographies like Africa. The number of units under the Group is set to grow to 300 by the year 2017, and looking at further investment opportunities in Asia and Africa.

What is the turnover, net profit etc? What is your targets on revenue and profit side in next five years?

We have a current turnover of Rs 3000-3500 crore. India contributes to 10-15 per cent . The Group is looking at India as a major opportunity as it goes forward in order to tap potential of the larger market. The Group’s expansion in India will be based on a ‘Hub & Spoke’ model in Tier II and III cities, to establish clusters, aiming to have about 4000 beds at its health facilities by the year 2015.

Source: Business Standard

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