Aster DM Healthcare raises $60M from existing investors Olympus, IVFA

Aster DM Healthcare, which runs hospitals spread across India and the Middle East, has raised $60 million from its existing investors Olympus Capital and India Value Fund Advisors (IVFA), as per a statement.

VCCircle had first reported that the firm is looking to raise capital which would include its existing investors.

In 2012, Olympus Capital invested $100 million through a mix of primary share purchase and secondary transaction which saw existing investor IVFA part exit. IVFA invested over $50 million in two rounds in the company in 2008 and 2011.

The company had also received interest from other investors but the existing PE firms offered to participate in the fundraise at the same terms.

Veda Corporate Advisors was the exclusive advisor to the company and its promoters in the transaction. It had previously also advised in the two PE funding deals worth $150 million.

Aster DM Healthcare is in talks with a few players to acquire 100-200 bed hospitals as part of its expansion in South and West India, Azad Moopen, chairman and founder of the group, told VCCircle in a recent interaction.

Moopen had also said that the company is looking at a deal size of Rs 50-100 crore and that it plans to add 1,500 beds through green-field projects and 1,000 more through acquisition in two years.

Last year, it acquired a majority stake in Malabar Institute of Medical Sciences (MIMS) and is mulling to launch more hospitals under MIMS brand.

The company, which was started by Moopen family in Dubai and later moved its corporate base to India, is also considering an IPO in a year.

It earns a major portion of its revenue from the Middle East, with the largest chain of hospitals, clinics and pharmacies in the UAE under the Aster and Medcare brands, with significant operations in Qatar, Oman and Saudi Arabia. The company is also extensively looking to augment its presence in India and South Asian markets.

In India it has a significant presence in Kerala and Maharashtra and plans to expand in the southern and western regions of the country.

It has hospitals such as Aster Medcity in Kochi, a large 1,000 beds quaternary care hospital complex, which is currently operating its first phase of 540 beds; Malabar Institute of Medical Science, a tertiary care hospital in Kerala with around 800 beds; Aster Aadhar hospital, a secondary care hospital in Kolhapur and Aster Medipoint hospital in Pune. It is also shortly commencing its first hospital in Bangalore.

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