Aster DM Healthcare jumps 7% as company announces special dividend of ₹118/- per share

Shares of Aster DM Healthcare soared 7% on Monday morning after the company announced a special dividend of ₹118/- per share following the receipt of proceeds from the sale of its Gulf Cooperation Council (GCC) business and redemption of redeemable preference shares issued to the company by its wholly-owned material subsidiary Affinity Holdings.

The special dividend will be paid within 30 days from the date of the declaration, the company said. Aster DM shares are currently trading close to the ₹523 level. Meanwhile, the board has decided not to declare an interim dividend for the financial year 2024.

Earlier this month, the company had announced the completion of the separation of its India and GCC businesses. Under the separation plan, a consortium of investors led by Fajr Capital, a sovereign-backed private equity firm, had acquired a 65% stake in Aster GCC, with the Moopen family retaining a 35% stake alongside management and operational rights.

Aster had pointed out that in the Indian operations, the Moopen family continues to hold the 41.88% stake. Following the transaction, Affinity Holdings received a cash consideration of $907.6 million (approximately ₹7,533 crore).

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, it had said. The expansion plan will encompass a mix of brownfield and greenfield projects, encompassing 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 ₹1,000 crore, Aster had said.

Shares of the company have risen over 29% since the beginning of the year. The stock has gained over 109% in the last one year.