Industry Updates

Aster DM Healthcare Announces a Large Special Dividend of Rs.118/- per Share to its Shareholders

Published: April 15, 2024
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Aster DM Healthcare had on April 03, 2024 officially announced the conclusion of its India and GCC business separation

The Special Dividend announced is to reward the long-holding shareholders and will be paid within 30 days from the date of the declaration

The Board of Directors at Aster DM Healthcare Limited (“Company”), one of the largest integrated healthcare providers in India, has announced a Large Special Dividend of Rs.118/- per share on account of the receipt of proceeds from the sale of the GCC business. The special dividend will be paid within 30 (thirty) days from the date of the declaration i.e. April 23, 2024. This event will result in a significant distribution of ~80% of the consideration of USD 907.6 million as dividend to its shareholders. Despite this large special dividend, the company will still retain INR~1500 Cr from the sale of GCC business in the reserves under its balance sheet.

The Company had recently concluded the separation of its India and GCC businesses, pursuant to which Affinity Holdings Limited (a wholly subsidiary of the Company) received a cash consideration of USD 907.6M.

The Moopen family continues to hold the 41.88% stake in the listed entity. Dr. Azad Moopen will remain the Founder Chairman and Ms. Alisha Moopen will remain a Director on the board of the Company. The listed entity will be led by Dr. Nitish Shetty as Chief Executive Officer, who will focus on the growth of the India business, aimed at creating value for its shareholders.

Dr. Azad Moopen, Founder Chairman, Aster DM Healthcare

Dr. Azad Moopen, Founder Chairman, Aster DM Healthcare said, “The current Indian healthcare market looks promising and post segregation now, our efforts will be to dynamically increase our footprint in India. We are making the right investments in our people, innovation and infrastructure to differentiate ourselves and create long-term value for all our stakeholders. The dividend to be paid is proof of our commitment to all shareholders. As the company progresses, it will continue to prioritize shareholder interests and make decisions in their best interest towards creating sustained long term value.

Dr. Nitish Shetty, CEO, Aster DM Healthcare, India said, “The last quarter saw us make significant progress in many aspects, demonstrating our execution strength. We aim to balance shareholder returns with future investments for sustained long-term growth. The dividend distribution plan aims to reward shareholders for their long-held trust and investment in the company. Aster DM Healthcare remains committed to transparency and regulatory compliance throughout the process.

As the Indian entity is now separate from its GCC counterpart, the Company plans to add 1700 beds by FY27 through the organic route and will further look for expansion through the inorganic route as well. Through both greenfield and brownfield opportunities, the company aim to take its total bed tally in India to 6600+ in the next 3 years and scale up its labs and pharmacy business to emerge as the top 3 integrated healthcare providers in India. The plan will encompass a mix of brownfield and greenfield projects, including the upcoming Aster Capital in Trivandrum, and Aster MIMS Kasargod and adding bed capacity to the existing hospitals. The Company will also be looking at potential markets such as Maharashtra and Uttar Pradesh. The capital allocation for this expansion is in the range of 1000cr.

About Aster DM Healthcare Limited, India

Aster DM Healthcare Limited is one of the largest healthcare service providers operating in India with a strong presence across primary, secondary, tertiary, and quaternary healthcare through 19 hospitals, 13 clinics, 223 pharmacies (Operated by Alfaone Retail Pharmacies Private Limited under brand license from Aster), and 224 labs and patient experience centers across 5 States in India, delivering a simple yet strong promise to different stakeholders: “We’ll treat you well.” Aster has been recognized as one of the most sustainable companies globally, with 9 hospitals featured in Newsweek magazine’s World’s Best Hospitals list for 2024.

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