aster: Aster DM to tap private equity investors for its India business

Share this post on:

Aster DM Healthcare, a Dubai-based hospital chain, plans to seek private equity investment for its Indian operations after completing the sale of its business in the Gulf Cooperation Council (GCC) countries.

“We are getting a lot of inbound interest from investors in the last six months; now it has increased,” Dr. Azad Moopen, chairman of Aster DM Healthcare, said in an interview to ET.

“The active work on this will happen once the transaction (business sale in the GCC countries) is completed. We are looking for the best PE or investor who is ready to align with our plans,” Moopen added.

The company’s board earlier this week approved the separation and sale of its business in the GCC countries to a consortium led by UAE-based Fajr Capital for $1 billion.

Moopen said the transaction would be completed by the end of this financial year.

He added that investor enthusiasm for the Indian arm of the business has surged since the announcement of its separation from the GCC operations, driven by the far more promising growth prospects of the Indian market.”This transaction helps India in such a way that the debt which was sitting on the consolidated balance sheet, a large part of it goes away because this was GCC (debt); India debt is very minimal. It is as low as one year’s Ebitda. We don’t have issues from banks for funding (expansion),” Moopen said.Aster has proposed to use most of the proceeds from the GCC business sale to pay dividends to shareholders, and the rest for business expansion.

“We have a plan for India; whatever is required for the next three years will be funded from the sale and internal accruals,” Moopen said.

In India, Aster has a substantial and growing network across five states in south India through 19 hospitals, 13 clinics, 226 pharmacies and 251 patient experience centres.

In FY23, Aster posted revenue of ₹11,933 crore, of which India accounted for 25%. The Indian business is growing at 15-20% annually.

Share this post on:

Leave a Reply

Your email address will not be published. Required fields are marked *