Religare Health care (IPO)

Religare Health care: some key selling pts/risks of the Trust are as follows: + Strong industry dynamics with India’s population expected to surpass China by 2030, and healthcare expenditure per household expenses to rise from 7.5% in 2005 to 10% in 2015. This is supported by a rise in non-communicable diseases and increased healthcare affordability via India’s health insurance market, which is estimated to grow at 27% CAGR by 2015. + Demand to outstrip supply, with India’s medical tourism market expected to grow more then 30% by 2015. Meanwhile, India faces a chronic shortfall of healthcare infrastructure, with density of healthcare personnel’s and hospitality beds, a far cry off global average and World Health Organisation guidelines. + Strong sponsor in Fortis Healthcare, whose current network comprises of 73 healthcare facilities with a bed capacity of 12,000 beds. Fortis healthcare business grew at a CAGR of 52.7% from 2008 – 2012, on back of successful acquisitions, improved utilisation and occupancy rates. • Distribution waiver will apply to holders of sponsor units (28% of total units) till 31 March 2014, following which common unit holders would see a substantial drop in distribution yield. With the SGD having appreciated 27% against the Indian Rupee since 2009, foreign-exchange risk remains an overhang.