The shares of one of the largest private healthcare service providers gained 5 percent, to an intraday high of ₹439 per share after the company completed separation of India and GCC business.
Aster DM Healthcare Ltd. belongs to the mid-cap category of stock, with a market value of ₹21,814 crores. On Thursday, At 12:35 p.m, the company shares were trading at ₹437 per share, up 4.50 percent from the previous close price on the stock exchange.
Aster DM Healthcare Limited announced the completion of the separation of its India and Gulf Cooperation Council (GCC) businesses. Under the separation plan, a consortium of investors led by Fajr Capital, a sovereign-backed private equity firm, has acquired a 65% stake in Aster GCC, and the Moopen family retained a 35% stake alongside management and operational rights. Lift
Azad Moopen will continue as the founder chairman. Alisha Moopen will retain her position as a director on the board of the company while also serving as the managing director and group CEO of Aster GCC.
The Moopen family will maintain a 41.88% stake in the Indian operations. The transaction has been now concluded, resulting in Affinity Holdings Limited (a wholly-owned subsidiary of the Company) receiving a cash consideration of $907.6M.
In November 2023, the Company obtained board approvals to separate its operations in the GCC and India, creating two distinct regional healthcare champions. To proe strategic and financial flexibility to meet the priorities of patients and to capitalize on the increasing demand in their respective markets.Company mentioned in its exchange filing.
The shareholders of the Company approved the separation plan in January 2024. Aster DM Healthcare intends to increase its bed capacity by 1700 through organic growth by FY27.
The company’s expansion strategy that comprises a combination of brownfield and greenfield projects, including the forthcoming Aster Capital in Trivandrum and Aster MIMS Kasargod, as well as expanding bed capacity in existing hospitals.
Additionally, the company plans to explore potential markets such as Maharashtra and Uttar Pradesh, with a capital expenditure of 1000 crore.
The company witnessed a 16 percent year-on-year increase in operational revenue, rising from ₹3,192 crores in Q3FY23 to ₹3,711 crores in Q3FY24. Concurrently, net profit surged by 31 percent, escalating from ₹159 crores to ₹209 crores.
Aster DM Healthcare shares have shown robust growth, with a 32 percent gain over the past six months and an impressive 82 percent surge over the past year.
Aster DM Healthcare Limited is one of the largest integrated private healthcare service providers operating in GCC (Gulf Cooperation Council) countries and an emerging player in India. With an inherent emphasis on clinical excellence, it is one of the few entities in the world with a strong presence across primary, secondary, tertiary, and quaternary healthcare.
The company expanded significantly, going from 10 hospitals and 7 clinics in FY18 to 19 hospitals, 13 clinics, 223 pharmacies, and 224 labs currently. The bed capacity also increased from 3,007 in FY18 to 4,857 now.
In the last quarter, the company received 57% of its revenue from Kerala, 31% from Karnataka and Maharashtra, and 12% from Andhra and Telangana.
Written by Omkar Chitnis
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