Foreign institutional investors (FIIs) are reportedly looking to offload 30 percent of their stake in Indian healthcare group Aster DM Healthcare, which is controlled by an UAE-based hospital conglomerate, for around $300 million. KKR, a private equity fund, and Max Healthcare Institute, a hospital chain, are said to be the potential buyers in these negotiations.
Aster DM Healthcare is based in Bengaluru, and is owned by the UAE-based promoters, who own 41.88 percent, and the FIIs, who own 38.63 percent. Additionally, two other investors are considering selling their stake in the company. These are Olympus Capital, who owns 19 percent, and Rimco, an investment firm based out of Mauritius, who holds 12 percent.
The company recently released their fourth quarter earnings report for 2022-23, showing a 24 percent year-on-year decrease in profits. Additionally, overall profits for the full fiscal year dropped by 19.2%. Poor performance was attributed to the launching of five new hospitals across the Gulf Cooperation Council countries and India.
Revenues for the entire year, however, did grow 16 percent to Rs 11,933 and operational earnings for the fourth quarter increased 20 percent to Rs 3,262 crore. For the company’s Indian segment, full-year revenue increased 25 percent to Rs 2,983 crore, while revenues for the fourth quarter went up 32 percent to Rs 804 crore.
Aster DM Healthcare currently operates in Kerala, Karnataka, Maharashtra, Andhra Pradesh and Telangana and have seen their total bed capacity in India to jump to 4,317 from 3,905 last year.
Aster DM Healthcare is a leading healthcare provider in the UAE and India, offering medical care through a range of hospitals, clinics, and emergency care services. With its growing presence and expansion, Aster DM Healthcare is striving to become a leading player in the Indian healthcare industry and meet the rising demand for healthcare services. The management of Aster DM Healthcare is led by Dr. Azad Moopen, who serves as the Founder Chairman and Managing Director of the group.
