Aster DM Shares Surge 9% on Dividend Consideration

8 Apr 2024 , 02:54 PM

Following the announcement that the board of Aster DM Healthcare Ltd. will meet on Friday, April 12, 2024 to discuss declaring an interim dividend and a special dividend for the financial year 2023–2024, the hospital chain’s shares surged over 9% to reach a record high level of ₹499.90 in trading on Monday.

The interim and special dividend’s record date is set for April 23, 2024. A record date indicates that only accounts with shares of Aster DM as of that date are qualified to receive dividend payments.

Affinity Holdings Pvt Ltd, a fully owned material subsidiary of Aster DM Healthcare, which is a leading public premium healthcare provider, sold Alpha GCC Holdings Ltd. to segregate the GCC (Gulf Cooperation Council) business. This resulted in the consideration of a special dividend, according to Aster DM Healthcare.

The company will be paying out its first dividend since going public in 2018.

Aster DM Healthcare had stated earlier in the year that it would think about giving shareholders a dividend of between ₹110 and 120 from the money received from the sale of the company’s controlling stake in the GCC business.

The hospital chain said last week that it has successfully completed the division of its operations in the GCC and India.

The Moopen family still owns a 35% investment in Aster GCC along with management and operating rights, but a group of investors led by the sovereign-backed private equity firm Fajr Capital has purchased a 65% stake in the company under the terms of the separation plan. In the meantime, the Moopen family still owns 41.88% of the Indian activities.

As per the company’s announcement, Affinity Holdings Limited, an entirely-owned subsidiary of Aster DM Healthcare, will get a cash consideration of $907.6 million upon the completion of this deal.

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