 "Aster DM Healthcare")
Aster DM Healthcare, which netted around USD 907 million from the sale of its GCC business, looks to plough around Rs 1,000 crore into its expansion plans in India as it targets a bed capacity of over 6,600 in the next three years.
The healthcare company plans to add 1,700 beds by 2026-27 through organic and inorganic routes.
The company's board last week also approved a special dividend of Rs 118 per share to its shareholders following the booster shot from the divestment of the GCC business.
Aster DM Healthcare recently concluded the sale of its GCC businesses for a cash consideration of USD 907.6 million.
The record date for determining the entitlement of the shareholders to special dividend is April 23, 2024.
Aster DM Healthcare shares rallied more than 14 per cent on Monday to hit a fresh 52-week high on BSE, bucking a weak trend in the broader market. The stock hit a year high of Rs 558.30 per share before closing at Rs 522.75 on BSE, up by 7.13 per cent over the previous close.
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"As the Indian entity is now separate from its GCC counterpart, the company plans to add 1,700 beds by FY27 through the organic route and will further look for expansion through the inorganic route as well," Aster DM Healthcare said in a statement.
Through both greenfield and brownfield opportunities, the company aims to take its total bed tally in India to over 6,600 in the next three years and scale up its labs and pharmacy business to emerge as the top three integrated healthcare providers in India, it added.
The plan encompasses a mix of brownfield and greenfield projects, including the upcoming Aster Capital in Trivandrum, and Aster MIMS Kasaragod and adding bed capacity to the existing hospitals, it said.
The company will also be looking at potential markets such as Maharashtra and Uttar Pradesh, the healthcare firm said.
"The capital allocation for this expansion is in the range of Rs 1,000 crore," it added.
Aster DM Healthcare said the special dividend will be paid to the shareholders by April 23, 2024.
Despite this large dividend, the company will still retain Rs 1,500 crore from the sale of GCC business, it added.
"The current Indian healthcare market looks promising and post segregation now, our efforts will be to dynamically increase our footprint in India," Aster DM Healthcare Founder Chairman Azad Moopen said.
The company is making the right investments in people, innovation and infrastructure to differentiate it and create long-term value for all stakeholders, he added.
Shares of Aster DM Healthcare on Monday jumped more than 7.50 per cent.
The stock climbed 7.13 per cent to settle at Rs 522.75 apiece on the BSE. During the day, it zoomed 14.41 per cent to Rs 558.30 -- its 52-week high.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
