Tag: Aster DM Healthcare

Aster DM CEO: Promoters to maintain stake, release pledged shares soon

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Nitish Shetty, CEO of hospital chain Aster DM Healthcare says the promoters have no intention of reducing stake in the company. However, they do plan to release pledged shares soon.

Currently, nearly 98% of the promoter stake of around 41.9% in the company is pledged.

“The promoters will be in a better position to answer that question. But at this moment of time, they have plans to release the pledge at the earliest,” Shetty said without committing to a timeline.

On April 12, the company’s board of directors approved a special dividend of ₹118 per share.

This dividend is possible due to the proceeds from selling the Gulf Cooperation Council (GCC) business and redeeming preference shares issued by Affinity Holdings, a wholly-owned subsidiary of Aster DM Healthcare.

In November 2023, Aster DM Healthcare has announced its intention to sell the equity shares held by its wholly owned subsidiary, Affinity Holdings, in Aster DM Healthcare FZC to Alpha GCC Holdings.

This move was aimed to separate the company’s India and GCC operations into two independent entities, allowing for better long-term value realisation.

Also Read | Aster DM Healthcare declares special dividend of ₹118 per share

As part of this process, a sovereign-owned private equity firm based in the UAE, represented by a consortium of investors led by Fajr Capital, proposed to acquire a 65% stake in Aster DM Healthcare’s GCC business.

This proposal culminated in a definitive agreement. The shareholders of the company approved this separation plan in January 2024.

The market capitalisation of Aster DM Healthcare is around ₹26,224.44 crore. Its shares have gained close to 109% in the past year.

Also Read | Aster DM Healthcare completes separation of India and Gulf businesses

For the entire interview, watch the accompanying video

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Aster DM Healthcare declares special dividend of ₹118 per share

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Hospital chain Aster DM Healthcare Ltd on Friday (April 12) said its board of directors has approved a special dividend of ₹118 per share.

This dividend is attributed to the proceeds from the sale of the GCC business and the redemption of redeemable preference shares issued to the company by Affinity Holdings Pvt Ltd, a wholly-owned material subsidiary of Aster DM Healthcare.

The special dividend will be disbursed to shareholders whose names stand on the register of members of the company as of the record date, according to a stock exchange filing.

It is expected to be paid within 30 days from the date of the declaration, providing shareholders with a timely return on their investments. The board has decided not to declare an interim dividend for the financial year 2023-24.

Also Read: Aster DM healthcare jumps 8% as investment deal in its Gulf business nears completion

However, it may consider the declaration of a final dividend for the same financial year at a subsequent board meeting.

“The Board may consider declaration of final dividend for the financial year 2023-24 at the Board meeting considering the approval of audited financial statements for FY 2023-24,” the company added.

In November 2023, Aster DM Healthcare announced plans to sell the equity shares held by its wholly-owned subsidiary, Affinity Holdings, in Aster DM Healthcare FZC to Alpha GCC Holdings Ltd. This was done to separate the company’s India and GCC businesses to unlock long-term value by running two standalone entities.

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During this process, a sovereign-owned private equity firm based in the UAE — a consortium of investors led by Fajr Capital — proposed to acquire a stake of 65% in Aster DM Healthcare’s GCC business, entering into a definitive agreement. This separation plan was approved by the company’s shareholders earlier this year in January 2024.

Shares of Aster DM Healthcare Ltd ended at ₹487.95, up by ₹12.65, or 2.66%, on the BSE.

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Aster DM shares surge 9% as board to consider interim and special dividend on April 12

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of hospital chain Aster DM Healthcare Ltd. climbed over 9% to hit a record high level of ₹499.90 in trade Monday after the company said its board will meet on Friday, April 12, 2024 to consider declaration of an interim dividend and a special dividend for the financial year 2023-24.

Record date for the interim and special dividend has been fixed as April 23, 2024. A record date means only those accounts, who own shares of Aster DM as of that date, would be eligible for the dividend payout.

Aster DM Healthcare, a leading public-based premium healthcare provider, said the consideration of special dividend was on account of the segregation of the GCC (Gulf Cooperation Council) business through the sale by Affinity Holdings Pvt Ltd, a wholly owned material subsidiary of the company, conducting business in the GCC region to Alpha GCC Holdings Ltd.

This will mark the company’s first dividend distribution since its 2018 listing.

Aster DM to consider paying ₹110-120 dividend

Earlier this year, Aster DM Healthcare had said that it would consider paying ₹110-120 as dividend to shareholders from the proceeds after the sale of majority stake in GCC business.

Last week, the hospital chain informed that it has successfully concluded the separation of its India and 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, while the Moopen family retains a 35% stake alongside management and operational rights. Meanwhile, in the Indian operations, the Moopen family maintains a 41.88% stake.

According to the company, the completion of this transaction sees Affinity Holdings Limited, a wholly-owned subsidiary of Aster DM Healthcare, receiving a cash consideration of $907.6 million.

Financials

In the December quarter, Aster DM Healthcare reported a 28.6% jump in net profit ₹179.2 crore from the previous year. In the corresponding quarter last year, it had reported a net profit of ₹139.4 crore.

The company’s revenue from operations increased 16.2% to ₹3,710.6 crore against ₹3,192.1 crore in the corresponding period of the preceding fiscal. At the operating level, EBITDA rose 25.7% to ₹564 crore in the third quarter of this fiscal over ₹448.6 crore in the corresponding period in the previous fiscal.

The EBITDA margin stood at 15.2% in the reporting quarter against 14.1% in the year-ago period. EBITDA is earnings before interest, tax, depreciation, and amortisation.

Founded in 1987 from a single clinic in Dubai, Aster DM has a strong presence across primary, secondary, tertiary, and quaternary healthcare and runs 33 hospitals, 127 clinics, 527 pharmacies, and 229 labs and patient experience centres in six Gulf countries and India.

Shares of Aster jumped 6.69% on the NSE to trade at ₹486.55 apiece at around 12:30 pm today. The shares have gained close to 13% over the last one month compared to gains of around 1.48% in Nifty 50. The company’s market capitalisation is around ₹24,296 crore.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Aster DM Healthcare completes separation of India and Gulf businesses

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Aster DM Healthcare Limited, a leading integrated healthcare provider in India and the Gulf region, has successfully concluded 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, while the Moopen family retains a 35% stake alongside management and operational rights. Meanwhile, in the Indian operations, the Moopen family maintains a 41.88% stake.

According to the company, the completion of this transaction sees Affinity Holdings Limited, a wholly-owned subsidiary of Aster DM Healthcare, receiving a cash consideration of $907.6 million.

The decision to separate the GCC and India businesses was initiated in November 2023 and received approval from the board, according to the healthcare firm.

Shareholders also endorsed the separation plan in January 2024. Following meticulous regulatory and contractual processes, the transaction has now been successfully concluded.

Looking ahead, Aster DM Healthcare said it plans to bolster its presence in India by adding 1,700 beds by FY27, utilising a combination of organic and inorganic expansion strategies. This includes ventures such as Aster Capital in Trivandrum and Aster MIMS Kasargod, with potential expansions into markets like Maharashtra and Uttar Pradesh. The capital allocation for this expansion is estimated to be around ₹1,000 crore.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Aster DM Healthcare Block Deal: 10.1% equity worth ₹2,070 crore changes hands

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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As much as 10.1% equity, or 5.05 crore shares of Aster DM Healthcare, worth ₹2,070 crore of Aster DM Healthcare changed hands on Wednesday, March 27.

The official buyers and sellers in the block deal are not yet known.

On Tuesday, March 26, sources told CNBC-TV18 that the private equity firm Olympus Capital Asia Investments (OCAI) was likely to sell up to 9.8% equity in hospital chain Aster DM Healthcare via a block deal.

The offer size is valued at ₹1,952.8 crore, with an offer price range of ₹400-432 per share, the sources added.

As of the end of the December quarter, Olympus Capital Asia Investments held an 18.96% stake in Aster DM Healthcare.

In the December quarter, Aster DM Healthcare reported a 28.6% jump in net profit ₹179.2 crore from the previous year. In the corresponding quarter last year, it had reported a net profit of ₹139.4 crore.

The company’s revenue from operations increased 16.2% to ₹3,710.6 crore against ₹3,192.1 crore in the corresponding period of the preceding fiscal. At the operating level, EBITDA rose 25.7% to ₹564 crore in the third quarter of this fiscal over ₹448.6 crore in the corresponding period in the previous fiscal.

The EBITDA margin stood at 15.2% in the reporting quarter against 14.1% in the year-ago period. EBITDA is earnings before interest, tax, depreciation, and amortisation.

Aster DM shares were down 5.4% at ₹413.5 apiece at 9.17 am on Wednesday, March 27.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Block Deal: Olympus Capital Asia may sell up to 9.8% stake in Aster DM Healthcare

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Private equity firm Olympus Capital Asia Investments (OCAI) is likely to sell up to 9.8% equity in hospital chain Aster DM Healthcare via a block deal, sources told CNBC-TV18.

The offer size is valued at ₹1,952.8 crore, with an offer price range of ₹400-432 per share, the sources added.

As of the end of the December quarter, Olympus Capital Asia Investments held an 18.96% stake in Aster DM Healthcare.

Aster DM Healthcare reported a 28.6% year-on-year (YoY) jump in net profit at ₹179.2 crore for the third quarter that ended December 31, 2023. In the corresponding quarter last year, Aster DM Healthcare posted a net profit of ₹139.4 crore, the company said in a regulatory filing.

The company’s revenue from operations increased 16.2% to ₹3,710.6 crore against ₹3,192.1 crore in the corresponding period of the preceding fiscal. At the operating level, EBITDA rose 25.7% to ₹564 crore in the third quarter of this fiscal over ₹448.6 crore in the corresponding period in the previous fiscal.

The EBITDA margin stood at 15.2% in the reporting quarter against 14.1% in the year-ago period. EBITDA is earnings before interest, tax, depreciation, and amortisation.

The company’s operational revenue grew 16% year-on-year to ₹3,711 crore against ₹3,192 crore in Q3 of FY23. Operating EBITDA grew 28% YoY to ₹583 crore against ₹456 crore in Q3 of FY23.

Shares of Aster DM Healthcare Ltd ended at ₹438.30, down by ₹0.75, or 0.17%, on the BSE.

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Aster DM healthcare jumps 8% as investment deal in its Gulf business nears completion

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Aster DM Healthcare Ltd shares jumped 8% on Wednesday after the company announced an investment deal in its Gulf business and the separation of its India and Gulf businesses nearing completion.

The leading public-based premium healthcare provider, in a stock exchange filing, said that the separation process of its India and GCC businesses, along with the proposed investment by a consortium of investors led by Fajr Capital in the GCC business is nearing completion.

Aster DM Healthcare surged by as much as 8% to a high of ₹462.8 apiece on BSE after the announcement. Shares of the hospital chain closed ₹438.55 apiece, up 2.35%, on BSE.

In November 2023, Aster DM Healthcare announced plans to sell the equity shares held by its wholly owned subsidiary, Affinity Holdings, in Aster DM Healthcare FZC to Alpha GCC Holdings Ltd.

This was done to separate the company’s India and GCC businesses to unlock long-term value by running two standalone entities.

During this process, a sovereign-owned private equity firm based in the UAE—a consortium of investors led by Fajr Capital—proposed to acquire a stake of 65% in Aster DM Healthcare’s GCC business, entering into a definitive agreement. This separation plan was approved by the company’s shareholders earlier this year in January 2024.

As per the latest update, the separation of Aster DM Healthcare’s two businesses, along with the investment proposed by the Fajr Capital-led consortium is about to complete.

“The plan essentially was to separate Aster’s India and GCC businesses to unlock long-term value, with a Fajr Capital-led consortium to acquire a 65% stake in the Company’s GCC business. The separation plan is now nearing completion, with key regulatory approvals (including approval from Saudi Arabia’s General Authority for Competition) obtained and transaction milestones achieved,” the company said in a release dated March 20.

The integration of business operations in Qatar into the Transaction perimeter of Aster DM Healthcare FZC has also been successfully completed, the company informed on March 20, 2024.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Aster DM Healthcare Q3 Results | Profit rises 29% to ₹179 crore, revenue up 16% to ₹3,711 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Hospital chain Aster DM Healthcare Ltd on Thursday (February 8) reported a 28.6% year-on-year (YoY) jump in net profit at ₹179.2 crore for the third quarter that ended December 31, 2023.

In the corresponding quarter last year, Aster DM Healthcare posted a net profit of ₹139.4 crore, the company said in a regulatory filing. The company’s revenue from operations increased 16.2% to ₹3,710.6 crore as against ₹3,192.1 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA rose 25.7% to ₹564 crore in the third quarter of this fiscal over ₹448.6 crore in the corresponding period in the previous fiscal. EBITDA margin stood at 15.2% in the reporting quarter as compared to 14.1% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

The company’s operational revenue grew 16% year-on-year to ₹3,711 crore against ₹3,192 crore in Q3 of FY23. Operating EBITDA grew 28% YoY to ₹583 crore against ₹456 crore in Q3 of FY23.

Dr Azad Moopen, founder, chairman and managing director of Aster DM Healthcare, said, “In Q3 FY24, our India business showcased 23% year-on-year revenue growth, surging to ₹949 crore. This growth was catalyzed by the expansion of over 750 beds within the past year.

Through diligent cost optimization initiatives and leveraging operational efficiencies, we achieved a 37% year-on-year increase in operating EBITDA in Q3FY24, elevating our hospitals’ Operating EBITDA margins to 19.8% and contributing to more than doubling the Net Profit after taxes for the quarter.”

The results came after the close of the market hours. Shares of Aster DM Healthcare Ltd ended at ₹439.10, up by ₹4.25, or 0.98% on the BSE.

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow