Aster DM Healthcare stock price up by more than 6% today

21 Jun 2024 , 09:37 AM

On June 21, Aster DM Healthcare’s stock experienced a significant sale, with 9.3% of its equity being sold for ₹1,607 Crore through block deals. This sale is likely part of private equity firm Olympus’ plan to reduce its stake in the company.

Details of the Sale

• Stake Sold: 9.3% equity of Aster DM Healthcare.
• Value: ₹1,607 Crore.
• Price per Share: ₹345, which is over 3% lower than the previous closing price and about 15% lower than Olympus’ last sale price.

Background on Olympus’ Stake in Aster DM

On June 20, Moneycontrol reported that Olympus was looking to sell a 5% equity stake in Aster DM, with an option to sell another 5%, potentially marking its complete exit from the company. Earlier in March, Olympus had sold 9.8% of its stake for ₹1,978 Crore at ₹405-406.72 per share, leaving it with a 10.1% shareholding.

Market Reaction

Aster DM Healthcare’s share price saw a slight increase on June 21, following a 1.1% gain the previous day. The stock traded above ₹357 in the opening trade. Despite this, the stock has fallen nearly 19% since Olympus’ last stake sale in late March and is down 36% from its mid-April high.

Company Background and Strategic Moves

Aster DM Healthcare launched a significant internal restructuring in 2022 to unlock value. This involved engaging with Gulf and sovereign funds to sell stakes in its Middle East business.

• November 2022: The company approved the sale of its GCC (Gulf Co-Operation Council) business to Alpha GCC Holdings Ltd for an equity value of $1 billion.

Aster DM Healthcare operates primarily in India and the Middle East and made its domestic market debut in February 2018. The promoter family currently holds a 41.88% stake in the company.