The primary issue from Aster DM Healthcare Limited was subscribed. The company had tapped the capital markets with its simultaneous offer for a fresh issue to raise Rs 725 crs and an offer for sale of 1,34,28,251 equity shares in a price band of Rs 180-190. The issue was open from Monday the 12th of February and had closed on Thursday the 15th of February.

Earlier the company had allotted 1,54,75,843 shares to 7 anchor investors comprising of 8 entities. The highest allocation was done to SBI Mutual Fund and Sundaram Mutual Fund of 34,25,058 shares a piece which is 22.13% of the anchor book.

The issue was subscribed 1.31 times. The QIB portion was subscribed 2.1 times. The leveraged HNI portion was undersubscribed at 0.55 times. This is yet another issue where the HNI has not applied for simply because there was no grey market activity. Secondly unless the issue in the HNI category is likely to get subscribed about 100 times, they do not subscribe to the same as the margin payable exceeds 1% and could be as high as 5-10%. The so-called risk is reduced significantly by selling shares in the grey market and ensuring that they are adequately covered. The retail portion was subscribed 1.18 times.

The full details of the subscription are given below: –

Markets continued to be under pressure and it was not just the LTCG effect. Global markets led by Dow, concerns on rising interest rates and also bond yields going crazy in the US. The BSESENSEX lost on four of the five trading days and was down 1,060.99 points or 3.12% at 34,005.76 points. NIFTY lost 305.65 points or 2.92% to close at 10,454.95 points. BSEMIDCAP and BSESMALLCAP gained 0.36% and 1.79% respectively.

Dow Jones was down 1,330.06 points or 5.50% at 24,190.90 points. It has entered negative territory for the calendar year 2018. Global markets have been rattled with the happenings in Dow and after a stellar run, the correction was more than overdue.

The primary market focus has clearly shifted to the SME segment. On the main board you now have far fewer issues than what are coming from the SME segment. There are more than two to three issues opening every week and with NBFC’s more than willing to finance the applications of HNI’s, the issue gets subscribed many times.

The main board has one issue which opens on Monday the 12th of February and closes on Thursday the 15th of February from Aster DM Healthcare Limited which is in the business of running hospitals, clinics and pharmacies in the GCC and India. The company has 19 hospitals, 98 clinics and 206 pharmacies, the bigger part of which is in the GCC and the smaller part in India, primarily in Southern India. Total revenue for the company is Rs 5,931 crs and a profit after tax of Rs 266.7 crs. The EPS for the year ended March 2017 is Rs 4.28 which values the company at a PE multiple of 44.29-44.39 based on March 2017 numbers. The company in terms of revenues is a close second to the Apollo group of hospitals. The price band is between Rs 180-190. The issue consists of a fresh issue to raise Rs 725 crs and an offer for sale of 1.34 cr shares. With GCC operations being well set and fairly matured, the focus of the company is in India where the opportunity seems to be ever expanding. The company has a total of 4,754 beds and besides setting up new hospitals, is also looking at the acquisition route to grow faster.

It has been decided that Indian stock indices would not trade overseas as they currently do in Singapore and Dubai. The exchanges would give notice and close down trading within six months. This is to ensure that liquidity from India is not sacrificed to trading overseas. This move would ensure that in the longer-term trading volumes in India would increase and the pressure that Singapore Nifty exerted on our markets would cease to happen. This augurs well for Indian bourses and one would see higher volumes and better price discovery in future as well.

Markets may have bottomed out in terms of price correction but time correction is certainly a long way off. It would take time for indices to settle down, consolidate before any meaningful rally begins all over again. We have recovered a mere 20% of the fall and have a long way to go before getting back to 29th January highs. Further global markets too need to consolidate. Wait for right opportunities as plenty of them would come your way.