Aster DM Healthcare separates businesses, focuses on Indian expansion

INDIA—Aster DM Healthcare Limited, a prominent integrated healthcare provider in India and GCC, has successfully separated its India and GCC businesses.

As part of the separation plan, a consortium of investors led by Fajr Capital, a sovereign-backed private equity firm, has acquired a 65% stake in Aster GCC, while the Moopen family retains a 35% stake alongside management and operational rights.

In the Indian operations, the Moopen family maintains a 41.88% stake. The transaction concluded with Affinity Holdings Limited, a wholly-owned subsidiary of the Company, receiving a cash consideration of US$907.6 million.

 The Company’s decision to separate its GCC and India businesses was initiated in November 2023, receiving board approvals, with shareholder approval following in January 2024.

The transaction successfully navigated through customary regulatory and contractual approvals.

Looking ahead, Aster DM Healthcare plans significant expansion in India, aiming to add 1700 beds by FY27 through both organic and inorganic routes.

This expansion strategy includes projects such as Aster Capital in Trivandrum and Aster MIMS Kasargod, as well as increasing bed capacity in existing hospitals, with potential expansions into markets like Maharashtra and Uttar Pradesh, allocating approximately ₹1000 crore for these endeavors.

Dr. Azad Moopen remains the Founder Chairman, while Ms. Alisha Moopen continues as a director and assumes the role of Managing Director and Group CEO of Aster GCC.

Dr. Nitish Shetty takes the helm as CEO of Aster DM Healthcare, India, focusing on driving growth and shareholder value in the Indian market.

Commenting on this development, Dr. Azad Moopen expressed the strategic importance of separating the India and GCC entities to establish fair value and unlock long-term investor value.

He emphasized the promising outlook of the Indian healthcare market and the company’s commitment to expanding its footprint in the country.

In her speech, Ms. Alisha Moopen highlighted the significance of the transaction for Aster’s growth journey. She expressed excitement about the potential for growth in both the Indian and GCC markets.

She reaffirmed Aster’s commitment to becoming one of the top healthcare brands globally.

Dr. Nitish Shetty finished by underscoring the immense growth potential of the Indian healthcare market and outlined plans for expansion over the next three years, focusing on both southern regions and potential new geographies.

EY and PwC provided independent valuation advice, with ICICI Securities offering a fair opinion for valuation guidance.

Moelis & Company and Credit Suisse acted as sell-side advisors, with legal counsel provided by Baker & McKenzie LLP and Cyril Amarchand Mangaldas for the company.

AZB & Partners advised independent directors, while HSBC Bank Middle East Ltd., Allen & Overy LLP, and PwC acted on behalf of the Fajr Capital consortium.

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