Now Reading: AGS Health files updated draft papers for Rs 4,800 crore IPO
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AGS Health files updated draft papers for Rs 4,800 crore IPO
Blackstone-owned AGS Health on Friday filed updated draft papers for a Rs 4,800 crore initial public offering. The IPO includes a fresh issue of shares worth Rs 1,800 crore and an offer…
The Story in Brief
Blackstone-owned AGS Health on Friday filed updated draft papers for a Rs 4,800 crore initial public offering. The IPO includes a fresh issue of shares worth Rs 1,800 crore and an offer for sale of shares worth Rs 3,000 crore by Blackstone. AGS Health had confidentially filed for an IPO with SEBI in April.
The company provides revenue cycle management services to US hospitals and healthcare providers. For the year ended March 31, it posted a profit of Rs 207 crore and revenue of Rs 2,041 crore.
The Indian Opinion
The hype around PE-backed IPOs often masks high valuations. AGS Health's Rs 4,800 crore offer values it at over 20 times its FY24 profit. Blackstone's large stake sale suggests it is cashing out. Investors must ask whether the company's dependence on US healthcare billing justifies such a premium. The real test will be anchor investor participation and subscription figures when the issue opens.
Source: health.economictimes.indiatimes.com
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