Aster DM Healthcare has begun discussions with investment banks for an initial public offering (IPO) in London or Mumbai. The planned $200 million (INR1,250 crore) IPO by the third biggest healthcare service provider in India is set to launch in the next 12 months, according to The Times of India (TOI),

The Kerala-based firm derives most of its $455-million revenue from the Middle East. However, Aster is expanding its reach in India and in other countries in Southeast Asia. Bank of America Merrill Lynch and JPMorgan are among those being considered to lead the IPO, the report detailed.

According to chairman and managing director Dr. Azad Moopen, Aster may fetch valuations of over $1 billion. Moopen added that the company already received offers from private equity firms that went beyond the billion-dollar mark. India Value Fund and Olympus Capital jointly hold a 37% stake in Aster. The remaining stake is owned by the Moopen family, the report explained.

Aster's current hospital network in India stretches across Pune, Kochi, Kohlapur, Calicut, and other Kerala towns. The company also has an eyecare clinic chain located in the National Capital Region (NCR), TOI reported.