Aster DM block deal: 9.3% stake sold for ₹1,607 crore; Olympus likely seller

Tanushree Jaiswal Tanushree Jaiswal

Last Updated: 21st June 2024 - 12:20 pm

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On June 21, 9.3% of Aster DM Healthcare's equity was sold for ₹1,607 crore through block deals, likely involving PE firm Olympus selling part of its remaining stake in the company.

Previously, on June 20, Moneycontrol had reported that Olympus intended to sell a 5% equity stake in Aster DM, with an option to sell an additional 5%, marking its complete exit from the Indian healthcare company.

A total of 4.7 crore shares were traded at ₹345 per share, which is over 3% lower than the previous closing price. This transaction price is also approximately 15% below the price at which Olympus last sold its stake in the company. In March, Olympus had sold a 9.8% stake in Aster DM for ₹1,978 crore, at a price range of ₹405-406.72 per share, reducing its shareholding to 10.1% in the firm.

Aster DM's share price saw a slight increase on June 21, building on the previous day's 1.1% gain, and traded above ₹357 in the opening session. Since March 27, when Olympus last sold its stake, the stock has declined by nearly 19% and has dropped 36% from its mid-April peak.

In 2022, Aster DM Healthcare initiated a significant internal restructuring effort to unlock value. As part of this initiative, the company approached Gulf funds and sovereign funds to sell a stake in its carved-out Middle East business. In November 2022, Aster DM Healthcare approved the sale of its Middle East or GCC (Gulf Co-Operation Council) business to Alpha GCC Holdings Ltd for an equity value of one billion dollars.

Aster DM Healthcare, primarily operating in India and the Middle East, made its debut in the domestic market in February 2018. The promoter family currently owns a 41.88% stake in the company.

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