Aster DM zooms 14% to hit fresh record high on special dividend of Rs 118

Shares of Aster DM Healthcare zoomed 14 percent to hit a fresh record high of Rs 558 on the National Stock Exchange in early deals on April 15. The gains come after the company announced a special dividend of Rs 118 a share.

Average trading volume on the counter jumped more than four-fold with a total of 1 crore shares changing hands on BSE and NSE combined, compared to the weekly average of 21 lakh.

The Aster DM Healthcare board on April 12 approved the declaration of a special dividend of Rs 118 a share payable to those shareholders whose names stand on the register of members of the company as on April 23.

This special dividend will be paid within 30 days from the date of the declaration. The board has decided not to declare an interim dividend for FY24.

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The Aster DM stock has rallied 37 percent in the past two weeks after the company completed the separation of its India and GCC businesses on April 3. Under the separation plan, a consortium of investors, led by Fajr Capital, a sovereign-backed private equity firm, acquired a 65 percent stake in Aster GCC.

Prompters the Moopen family retained a 35 percent stake alongside management and operational rights. In the Indian operations, the Moopen family will continue to hold a 41.88 percent stake.

The management said the Indian healthcare market looks promising and, after segregation, the company’s efforts would be to increase its footprint in India. Through both greenfield and brownfield opportunities, the company aims to take its total bed count in India to more than 6,600 in the next three years.

The expansion plan will encompass the upcoming Aster Capital in Trivandrum, and Aster MIMS Kasargod projects and adding bed capacity to the existing hospitals.

The healthcare 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 Rs 1,000 crore.

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At 10.05 am, Aster DM Healthcare shares were trading at Rs 520.50, up nearly 7 percent from the previous closing price. So far this year, the stock has jumped around 30 percent, outperforming benchmark Nifty 50 which has risen around 2 percent during this period.

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