Aster DM at new high

On the back of a 11-times jump in volumes in the morning trades alone, Aster DM is a bright star currently. From its close of Rs.332.65, it opened slightly higher at Rs.336.85 and soon jumped up to Rs.382, scaling a new 52-week high.

The stock hit a high after Aster approved the sale of its Middle East or GCC (Gulf Co-Operation Council) business to Alpha GCC Holdings Ltd for around $1.01 billion.

A consortium led by United Arab Emirates (UAE) government-backed Fajr Capital will own 65% of the Gulf entity, while Azad Moopen, the promoter of Aster, will own 35%, once the transaction is concluded.

The current market cap of the combined India and GCC business stands at $2 billion. The transaction values the GCC business at an enterprise value of $1.7 billion ( Rs.13,540 crore) and an equity value of $1.001 billion ( Rs.8,215 crore),helping erase Aster’s debt.

On details of the transaction, of the $1.001 billion, $903 million will be paid to Aster DM Healthcare, to be issued as dividends to Aster DM Healthcare investors. The rest will be paid out subsequent to certain ‘contingent events’, including an earnout of up to $70 million based on Ebitda achieved by the GCC business in FY24.