Aster DM Healthcare Stock Surges 14% on Record High, Announces Special Dividend

15 Apr 2024 , 03:04 PM

Aster DM Healthcare stock surged 14% to a record high of ₹558 on the NSE. This rise followed the announcement of a special dividend of ₹118 per share. Trading volume spiked over four-fold, with a total of 1 Crore shares exchanged on the BSE and NSE.

The special dividend, approved by the Aster DM Healthcare board on April 12, will be paid to shareholders listed as of April 23. No interim dividend for FY24 was declared by the board.

Aster DM Healthcare’s stock has soared 37% in the last two weeks post the completion of the separation of its India and GCC businesses on April 3.

Following the separation, a consortium led by Fajr Capital acquired a 65% stake in Aster GCC, while the Moopen family retained a 35% stake in GCC and a 41.88% stake in the Indian operations.

The management expressed optimism about the Indian healthcare market and plans to expand its footprint in India, aiming to increase bed capacity to over 6,600 in the next three years.

Expansion plans include projects like Aster Capital in Trivandrum and Aster MIMS Kasargod, along with adding beds to existing hospitals. Potential markets for expansion include Maharashtra and Uttar Pradesh, with a capital allocation of around ₹1,000 Crore.

As of the latest trading session, Aster DM Healthcare shares were priced at ₹522.70, up nearly 6.8% from the previous close. The stock has gained approximately 30% year-to-date, outperforming the Nifty 50 benchmark index.

Founded by Azad Moopen in 1987, Aster DM Healthcare is a multinational private hospital network with its corporate headquarters in Dubai, UAE, and registered in Bangalore, India.

The company operates hospitals, medical centers, diagnostic centers, laboratories, and pharmacies across six GCC countries and India under the brands Aster, Medcare, and Access.

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