Shares of this mid-cap stock associated with the ‘Healthcare’ industry zoomed up to 13 percent in Wednesday’s trading session after the company intimated about the sale of its Gulf business.
With a market capitalization of Rs 18,706.76 crores, the stocks of Aster DM Healthcare Limited started their trading session on Wednesday at Rs 336.85 and currently trade at Rs 374.90, gaining a whopping 13 percent as compared to the previous close of Rs 332.65 apiece.
In a regulatory filing with the Bombay Stock Exchange (BSE), the Healthcare company intimated that the Board of wholly-owned subsidiary, viz, “Affinity Holdings Private Limited”, in its meeting held on November 28th, approved the sale of shares held by Affinity in ‘Aster DM Healthcare FZC’ to ‘Alpha GCC Holdings Limited’ for a consideration of $1.001 Billion.
Alpha GCC Holdings Limited, handling the company’s Business in GCC countries, is a consortium that will be led by UAE Government-backed Fajr Capital and the Promoter Group, i.e., Moopen Family, in the ratio of 65:35.
According to the latest investor presentation, the company’s GCC operations, during H1FY23-24, reported a revenue of 4,760 crores constituting 73 percent of its total revenue.
During the recent financial quarters, the company has, on one end, managed to increase its operating revenues from Rs 3,215 crores during Q1FY23-24 to Rs 3,316 crores during Q2FY23-24, but, on the other end, the bottom-line figures of the company, due to excessive increase in total expenditure, transitioned from a profit of Rs 27 crores to a loss of Rs 8 crores.
According to the shareholding pattern data for the quarter ended September 2023, the company’s Promoters hold a 41.88 percent stake, and the Foreign Institutional Investors (FIIs) hold a considerable stake of 40.22 percent in the company.
Aster DM Healthcare Limited is a company based in India that is engaged in the business of providing healthcare solutions. The company operates through various business divisions including hospitals, clinics, and retail pharmacies, and provides healthcare services to patients across economic segments in several Gulf Cooperation Council (GCC) states.
Written by Amit Madnani
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