Fortis Healthcare and AU Financiers IPO

Fortis Healthcare

Fortis Healthcare Limited is a leading integrated healthcare service provider in India. The healthcare verticals of the company primarily comprise hospitals, diagnostics and day care specialty facilities.

In last five years, healthcare sector has been grown with stable growth rate. But financially, this growth looks unimpressive if we look profitability in the hospital business. Fortis healthcare is one of the companies having great turnover growth but have gives bad impression from their profits.

Now, Cash strapped Singh brothers is looking to raise money from selling their stake in Fortis healthcare and other firm. As per reports, Singh Brothers (Owners of fortis healthcare) was in exclusive talk with Integrated Healthcare Holding for selling major stake in company. But this talks has been rejected by company officials.

Although, soon there might be another buyer for their stake purchasing. From present valuations, i think healthcare sector can give good returns in future. Therefore, i would advice to go long with this sector. But for better returns, i think one should go long with having 2-3 combination of stocks of this sector in portfolio. And for short-term, i think there are very less chances of getting great upside in sector.

AU Small Finance Bank

AU Small Finance Bank, formerly known as AU Financiers, started its operations in 1996 as an NBFC. It finances mainly assets having revenue generating potential. It primarily served low and middle-income individuals and businesses. At the upper end of the price band, the company will have a market cap of Rs 10,176 crore. AU Small Finance Bank had reported a net profit of Rs 326 crore on net interest income of Rs 917 crore in financial year 2017.

As per news reports, most of the research analysts have recommend ‘Subscribe’ for AU Finance IPO. The growth records that company holds for last 5 years are very impressive and attractive. The vision that company have is also good for future targets. Valuation-wise, IPO is likely to have higher valuation on its listing i.e 10k crore market capital. The OFS of company is also something that sounds very large.

Although i think from listing, investors would not be able to earn higher immediate returns from stock. But from long-term prospective and the growth rate and vision that company have, i think one can go long with stock for around 4 years expecting great returns.

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One thought on “Fortis Healthcare and AU Financiers IPO

  • July 21, 2017 at 6:05 pm

    The capital markets regulator issued final observations on the IPO proposal of non-banking finance company Au Financiers on 22 March, the SEBI website showed on Monday.


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