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Updated March 20th, 2024 at 19:44 IST

Aster DM Healthcare plans to invest Rs 900 crore for domestic expansion

Although India presently contributes only a quarter of Aster's total revenue, the region has exhibited stronger growth compared to its Gulf counterpart.

Reported by: Business Desk
Healthcare
Healthcare | Image:Unsplash
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Aster expansion plans: The hospital chain Aster DM Healthcare, as it finalises the sale of its Gulf business, announces plans for domestic expansion, aiming to invest approximately Rs 900 crore. The company seeks to solidify its position among India's top three hospital chains, with aspirations to augment its current portfolio of 4,857 beds across 18 hospitals by adding approximately 1,500 beds by fiscal 2027.

In contrast to rivals like Apollo Hospitals and Manipal Health, which boast extensive bed capacities, Aster intends to boost its presence through a combination of establishing new facilities and enhancing the capacity of existing centres.

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Last November, Aster struck a deal to divest a majority stake in its Gulf operations, constituting a significant portion of its overall revenue, to a consortium led by private equity firm Fajr Capital. In response to challenges posed by a proxy advisory firm, Aster announced plans to distribute a substantial portion of the anticipated Rs 90.3 crore net proceeds from the sale to shareholders.

Although India presently contributes only a quarter of Aster's total revenue, the region has exhibited stronger growth compared to its Gulf counterpart. With local antitrust clearance secured for the sale to the Fajr Capital-led consortium, Aster anticipates the completion of the transaction, though a definitive timeline remains undisclosed.

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Since the announcement of the Gulf business sale in November, Aster's shares have surged by approximately 32 per cent up to the close of trading on Wednesday, reflecting investor optimism surrounding the company's strategic realignment and domestic expansion prospects.

(With Reuters inputs)

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Published March 20th, 2024 at 19:44 IST

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