Religare Health Trust

Religare Health Trust: Despite broader market malaise, Dow Jones says RHT appears set for a solid debut, following in the footsteps of other recent debutantes, such as Triyards on Thursday. The offering was said to be nearly 14.5X subscribed. Phillip Securities says the Indian hospital operator appears inexpensive, with its $0.90 IPO price at 1X book value, compared with Ascendas India Trust at 1.27X P/B; highlights RHT provides unique value proposition for investors to have exposure to the growing demand of quality healthcare services in India and Asia Pacific, adding that the 9.0% dividend yield looks appealing. While forex risk is the main concern, currency translation is hedged through FY14; ~ $510.8 m proceeds are earmarked to fund the initial portfolio of hospital and clinical assets. But players likely should temper their enthusiasm. RHT's offering of 567.46 m shares was priced at the low end of the $0.88-0.97 band in the preliminary prospectus. Lim & Tan Securities also says in a note that FY13-14's 8.9%-9.1% indicative yield doesn't look very enticing as Indian government bonds are yielding about 8%. The trust is set to begin trade at 2pm.