Aster DM stock hits an all-time high after board separates its India and Gulf businesses

Aster DM Share Price: Aster DM shares hit an all-time high of Rs 382.00 at BSE on Wednesday (November 29) after its board and subsidiary affinity approved on Tuesday the separation of its Gulf and India businesses.

The Aster DM stock was soaring higher by 9.72 per cent, or Rs 32.35, at Rs 365.00, at 10:44 on Wednesday. The spurt in volume was more than 11.46 times, as per BSE.

What is Aster DM's separation plan?

The company's board approved the separation of GCC and India businesses.

Fajr Capital's consortium will buy a 65% stake in the company's gulf (GCC) business.

The Moopen family will have a 35% stake in GCC business

Subsidiary Affinity will get a total of $100 crore (Rs 8215 crore) from the deal.

The GCC business' valuation is $170 crore (Rs 13540 crore), while the equity is valued at $100 crore (Rs 8,215 crore)

Existing shareholders will remain with Aster DM Healthcare

The money received from the deal will be given as dividend to the shareholders of Aster DM.

Azad Moopen will remain the company's founding chairman and will oversee India and GCC business.

The deal is expected to be completed by Q4 of FY24

Only 25 per cent of company's total income comes from India, while as high as 75 per cent comes from Gulf.

The company's Gulf business valuations are lower than its other peers

GCC valuations EV/EBITDA FY23 at 12.2x

The company was continuously expanding its GCC market