Bed capacity to grow past 6600 by 2027
BBN Bureau
KOCHI: Now that the GCC operations and Indian operations of Aster DM Helthcare group are separate though the largest shareholder and chairman of the company, Dr Azad Moopen (along with family) will continue to hold 35 per cent stake in the GCC operations as well.
An Abu Dhabi-based consortium of investors led by Fajr Capital, a sovereign-backed private equity firm, acquired 65 per cent of the GCC operations of the group
Aster that aspires to become one of the three largest hospital chains in the country soon is all set for a Rs1000 crore capital expenditure (capex) push before 2027.
The Aster chairman Dr Azad Moopen said the company is expected to fund this planned capex through a mix of debt and internal accruals.
The substantial capex will see the hospital major’s total bed capacity grow by another 1759 to 6616 by 2027 , according to the leading rating agency ICRA.
Over the past few years, Aster India has made substantial investments to expand its capacity in India through both organic and inorganic routes with the total bed capacity increasing to 4,857 (in 19 hospitals) as on December 31, 2023, from 3,007 (in 10 hospitals) as on March 31, 2018.
The Aster chairman Dr Azad Moopen said the company is expected to fund the planned capex through a mix of debt and internal accruals.
However, ICRA does not expect the capex to impact the company’s debt metrics significantly. Aster India currently sits on a net debt to the tune of Rs660.4 core.
Huge dividend pay under way
With the receipt of the current proceeds from the sale of GCC operations, the company is expected to pay a dividend of Rs118 per share (translating into total dividend of about Rs. 5,900 crore) with a record date of April 23, 2024.
However, it is believed that a major part of the proceeds of sale following the dividend payout will be retained by the company and kept as reserves to pursue inorganic growth opportunities, which remains an event risk and would be evaluated on a case-by-case basis.
