Aster DM Healthcare Surges After Company Announces Special Dividend


by Sandip Das on 16 April 2024,  5 min read


Share price of Aster DM Healthcare zoomed 14 percent to hit a fresh record high of Rs 558 after the company announced a special dividend of Rs 118 a share.

The Board of Directors of Aster DM Healthcare approved a special dividend of Rs 118 per share. This dividend is in response to the proceeds from the sale of the GCC business and the redemption of Redeemable Preference shares. These shares were issued to the Company by Affinity Holdings Pvt Ltd, a wholly owned material subsidiary. The dividend will be payable to shareholders listed on the Register of Members of the Company as on the Record Date.

“The special dividend will be paid within 30 (thirty) days from the date of the declaration. The Board has decided not to declare an interim dividend for the financial year 2023-24. The Board may consider declaration of final dividend for the financial year 2023-24 at the Board meeting considering the approval of audited financial statements for FY 2023-24,” the company said in an exchange filing.

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The special dividend, which will be paid within 30 days from the date of the declaration, represents a significant financial event for stakeholders. The board has made the strategic choice not to declare an interim dividend for the fiscal year 2024, reflecting careful consideration of the company’s financial position and long-term objectives. This deliberate approach ensures that resources are allocated efficiently to support future growth initiatives and capitalise on emerging opportunities.

Prompters indicate that the Moopen family, esteemed stakeholders in the company, have retained a substantial 35 percent stake, underscoring their continued confidence in the business’s trajectory. Alongside management and operational rights, this significant ownership stake reaffirms the family’s commitment to the company’s success and strategic vision, according to a moneycontrol report.

Furthermore, in the context of the company’s Indian operations, the Moopen family’s ownership remains robust, with a maintained stake of 41.88 percent. This solidifies their position as key stakeholders in the Indian healthcare market, where their expertise and influence are poised to drive further growth and innovation.

The management’s outlook on the Indian healthcare market is optimistic, signaling promising opportunities for expansion and development. Emphasising a proactive approach, the company intends to capitalise on this favorable market landscape by bolstering its presence in India. Following the segregation process, the company’s strategic focus will be directed towards enhancing its footprint in the Indian healthcare sector.

This strategic imperative is underscored by ambitious growth targets, as outlined in a recent report by Moneycontrol. Through a combination of greenfield projects and brownfield acquisitions, the company aims to significantly augment its total bed count in India, projecting a robust increase to over 6,600 beds within the next three years. This ambitious growth trajectory reflects the company’s unwavering commitment to driving value for its stakeholders while cementing its position as a leading player in the dynamic Indian healthcare industry.

At 12:07 PM, Aster DM Healthcare was trading at Rs 525 per share on NSE, up Rs 36.80 or 7.54 percent.

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Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment.

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