Aster DM Healthcare Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Nov 16, 2022In this article, we will discuss about Aster DM Healthcare Limited Buyback offer, buyback price, buyback size, Aster DM Healthcare Buyback record date, company financial, buyback necessity and its impact on company.
To track the real time price of this Buyback, Click on this link – Aster DM Healthcare Share Price
Aster DM Healthcare Limited Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | FEBRUARY 20, 2020 |
| Closing Date | MARCH 5, 2020 |
| Buyback Offer Amount | 120 Crores |
| Buyback No. of Shares | 57,14,285 |
| Face Value | Rs.10 |
| Date of Buyback Approval | January 09, 2020 |
| Date of Public Announcement | January 13, 2020 |
| Buy Back Price | Rs.210/- |
| Buy Back Premium | 39.67% |
| Date of Board Meeting | January 09, 2020 |
Aster DM Healthcare Buyback Opening and Closing Date
The starting and closing date of this buyback is from THURSDAY, FEBRUARY 20, 2020 to THURSDAY, MARCH 5, 2020.
Aster DM Healthcare Buyback Cash Offer
Cash Offer to Buy-back up to 57,14,285 fully paid-up equity shares of the Company of face value of Rs.10 each, representing 1.13% of the total number of equity shares.
Aster DM Healthcare Buyback Record Date
The decided record date is January 24, 2020.
Aster DM Healthcare Buyback Price
At a price of Rs.210/- per Equity Share.
Aster DM Healthcare Buyback Size
At a buyback price of Rs.210/- payable in cash for an aggregate maximum amount of Rs.120 Crores
Aster DM Healthcare Limited Buyback Acceptance Query
You can check for Buyback Acceptance query here. Just click on the given link and it will redirect you to buyback acceptance query page.
Aster DM Healthcare Limited Buyback Acceptance Ratio
Find profit & profit percentage based on various acceptance rate, The profit is calculated based on 1000 shares.
| Acceptance Ratio | Total Shares Accepted | Buyback Price | Buyback Amount | Profit | Profit% |
| 20% | 200 | 210 | 42000 | 9000 | 5.45% |
| 40% | 400 | 210 | 84000 | 18000 | 10.91% |
| 60% | 600 | 210 | 126000 | 27000 | 16.36% |
| 80% | 800 | 210 | 168000 | 36000 | 21.82% |
| 100% | 1000 | 210 | 210000 | 45000 | 27.27% |
Profit is calculated from Jan 22, 2020 share price i.e. Rs.165 per share of Aster DM Healthcare Limited.
According to the above table, if a share owner applies for 1000 shares of Aster DM Healthcare limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.210 per share & receive Rs.9000 as profit amount & 5.45% profit percentage on selling these 200 shares back to the company.
Similarly, if the owner gets 60% acceptance of share from the company, the owner will sell 600 shares @ Rs.210 & receive a profit of Rs.27000 @ 16.36% profit percentage.
Aster DM Healthcare Limited Buyback Overview
The Company was incorporated as DM Healthcare Private Limited on January 18, 2008 at Kochi, Ernakulam, Kerala as a private limited company under the Companies Act, 1956.
The Company is one of the largest private healthcare service providers which operates in multiple States part of the Cooperation Council for the Arab States of the Gulf (“GCC States”), based on numbers of hospitals and clinics, according to the Frost & Sullivan Report and is an emerging healthcare player in India.
As an integrated healthcare service provider, it covers the entire life cycle of healthcare, right from primary to quaternary care through state-of-the-art hospitals, clinics and pharmacies. With over 3 (three) decades of experience, it continues to provide quality healthcare services at an affordable cost in nine GCC States and India. It conducts its business in healthcare under the aegis of the brands ‘Aster’, ‘Medcare’, and ‘Access’.
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Company Finances – Aster DM Healthcare Limited
The brief audited consolidated financial information of the Company for the last three financial years and limited review financial information for the 6 months ending Sep 30, 2019 are provided below:
[In Rs. Crores]
| Particulars | For the 6 months ended (Unaudited) |
12 Months period ended March 31 (Audited) |
||
| 2019 | 2018 | 2017 | ||
| Total Income | 373.72 | 678.93 | 546.17 | 410.16 |
| Total Expenses (excluding finance cost, depreciation & amortization) | 394.92 | 628.89 | 633.37 | 722.65 |
| Interest | 15.48 | 10.86 | 53.95 | 228.33 |
| Depreciation and amortization expenses | 44.67 | 64.38 | 59.08 | 67.57 |
| Profit before tax | (21.20) | 48.52 | (87.19) | 46.71 |
| Provision for tax (including Deferred Tax) |
– | 0.45 | – | – |
| Profit /(Loss) after tax | (21.20) | 48.07 | (87.19) | 46.71 |
| Equity Share Capital | 505.23 | 505.23 | *505.23 | 403.22 |
| Reserve and Surplus | 2,410.75 | 2,420.78 | 2,366.48 | 1,870.59 |
| Networth | 2,915.98 | 2,926.01 | 2,871.71 | 2,273.81 |
| Total Debt (Excluding working capital loans) | 18.58 | 19.48 | 26.62 | 548.06 |
Aster DM Healthcare Limited Buyback Dates
| Date of Board Meeting approving the Buyback | January 09, 2020 |
| Date of publication of Public Announcement for Buyback | January 13, 2020 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | 24 January, 2020 |
| Buyback Opening date | February 20, 2020 |
| Buyback Closing date | March 5, 2020 |
| Last Date of verification of Tender Forms by the Registrar | March 16, 2020 |
| Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar | March 16, 2020 |
| *Last date of Settlement of Bids on the BSE Limited | March 17, 2020 |
| Last date of return of unaccepted Equity Shares by BSE Limited | March 17, 2020 |
| *Last date of Extinguishment of Equity Shares | March 24, 2020 |
Details of Public Announcement
In accordance with Regulation 7(i) of the Buyback Regulations, the Company has made the Public Announcement dated January 11, 2020 for the Buyback of Equity Shares published on January 13, 2020 in the following newspapers:
| Publication | Language | Edition |
| Business Standard | English | All editions |
| Business Standard | Hindi | All editions |
| Deshabhimani | Malayalam | Kochi Edition |
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Necessity of Aster DM Healthcare Limited Buyback
The Buyback is being undertaken by the Company to return surplus funds to the Equity Shareholders, which are over and above its ordinary capital requirements and in excess of any current investment plans, in an expedient, effective and cost efficient manner. This Buyback is being undertaken for the following reasons:
- The Buyback will help the Company to distribute surplus cash to its shareholders holding Equity Shares broadly in proportion to their shareholding, thereby enhancing the overall return to shareholders:
- This Buyback, which is being implemented through the Tender Offer route as prescribed under the Buyback Regulations, would involve a reservation of up to 15% of the Buyback Size for Small Shareholders. The Company believes that this reservation of up to 15% for Small Shareholders would benefit a large number of the Company’s public shareholders, who would be classified as Small Shareholders;
- The Buyback would help in improving financial ratios by reducing the equity base of the Company; and
- The Buyback gives the Eligible Shareholders the choice to either (A) participate in the Buyback and receive cash in lieu of their Equity Shares which are accepted under the 22 Buyback, or (B) not to participate in the Buyback and get a resultant increase in their percentage shareholding in the Company post the Buyback, without additional investment.
Impact of Aster DM Healthcare Limited Buyback on the Company
The Buyback is not likely to cause any material impact on the profitability/earnings of the Company except a reduction in the amount available for investment, which the Company could have otherwise deployed towards generating investment income.
This Buyback will not result in a change in control or otherwise affect the existing management structure of the Company.
The Company believes that the Buyback will not in any manner impair the ability of the Company to pursue growth opportunities or meet its cash requirements for business operations.
Salient financial parameters consequent to the Buyback based on the latest audited results as on March 31, 2019
are as under:
| Parameters (based on audited standalone financial statements for year ended March 31, 2019) | Pre Buy-back | Post Buy-back (Assuming Full Acceptance) |
| Net worth (Rs in Crores) | 2,926.01 | 2,806.01 |
| Return on Net worth (%) | 1.66% | 1.73% |
| Earnings Per Share (Rs) | 0.96 | 0.97 |
| Book Value per Share (Rs) | 57.91 | 56.17 |
| P/E as per the latest audited standalone financial statements | 168.16 | 166.25 |
| Total Debt / Equity Ratio | 0.01 | 0.01 |
Basis of Calculating Aster DM Healthcare Buyback Price
The Equity Shares of the Company are proposed to be bought back at the Buyback Price, i.e., Rs. 210/- (Rupees Two Hundred and Ten only) per Equity Share.
The Buyback Price has been arrived at after considering various factors such as including, but not limited to, the trends in the volume weighted average prices of the equity shares of the company on the Stock Exchanges, the net worth of the company, price earnings ratio and impact on other financial parameters and the possible impact of buyback on the earnings per share.
More on Aster DM Healthcare Buyback Price Calculation
A premium of 39.67% and 41.25% over the volume weighted average market price of the equity shares on BSE and NSE, respectively, during the three months preceding the date of intimation to the Stock Exchanges for the board meeting to consider the proposal of the Buyback, i.e. January 06, 2020 and
Premium of 28.97% and 29.41% over the volume weighted average market price of the equity shares on BSE and NSE, respectively, during the two weeks preceding the date of intimation to the Stock Exchanges for the board meeting to consider the proposal of the Buyback, i.e. January 06, 2020
Know more about other Buybacks and their Registrar details
Source of Funds for the Buyback
The Buyback would be financed out of free reserves and/or such other sources as may be permitted by law through “Tender Offer” route and as required by the Buyback Regulations and the Companies Act, and on such terms and conditions as the Board may deem fit.
The funds for the Buyback will be sourced from current balances of cash and cash equivalents and/or internal accruals of the Company. The Company does not intend to raise additional debt for the explicit purposes of the Buyback. Borrowed funds will not be used for the Buyback.
Aster DM Healthcare Limited – Manager to the Buyback
| Kotak Mahindra Capital Company Limited Address: 27BKC, 1st Floor, Plot No. C-27, “G” Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051 Phone: +91-22-4336-0128 Fax: +91-22-6713-2447 Contact Person: Mr. Ganesh Rane Email: aster.buyback@kotak.com Website: www.investmentbank.kotak.com SEBI Registration Number: INM000008704 Validity Period: Permanent CIN:U67120MH1995PLC134050 |
Aster DM Healthcare Limited – Registrar to the Buyback
|
Link Intime India Private Limited
Address: C-101, 247 Park, L.B.S. Marg, Vikhroli West, Mumbai 400 083 Phone: +91 22 49186200 Fax: +91 22 49186195 Contact Person: Mr. Sumeet Deshpande Email: aster.buyback@linkintime.co.in Website: www.linkintime.co.in SEBI Registration Number: INR000004058 Validity Period: Permanent CIN: U67190MH1999PTC118368 |
Aster DM Healthcare Limited Contact Details
| Company Contact Details |
| ASTER DM HEALTHCARE LIMITED Registered Office: IX/475L, Aster Medcity, Kuttisahib Road, Near Kothad Bridge, South Chittoor P.O. Cheranalloor, Kochi 682 027, Kerala. Phone: +91 0484 6699228; Fax: +91 0484 6699862; Email: cs@asterdmhealthcare.com; Website: www.asterdmhealthcare.com Corporate Office and Correspondence Address: No. 1785, Sarjapur Road Sector 1, HSR Layout, Ward No.174, Agara Extension, Bangalore -560102 India; Tel.: 080 22585845 Corporate Identification Number (CIN): L85110KL2008PLC021703 Contact Person: Ms. Puja Aggarwal, Company Secretary and Compliance Officer Phone: 080 22585845; Email: cs@asterdmhealthcare.com |
Aster DM Healthcare Limited Buyback News
News 1 – Buyback PDF / Letter of Offer [Download]
News 2 – Aster DM Healthcare Ltd – Public Announcement
FAQs of Aster DM Healthcare Buyback
What is the Aster DM Healthcare Buyback Period?
Aster DM Healthcare Buyback Period is briefly the time interval starting from the date of declaration of results of the postal ballot through remote e-voting i.e. FEBRUARY 20, 2020. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. MARCH 5, 2020.
What type of buyback is Aster DM Healthcare Buyback?
This company has chosen the route of Tender offer to repurchase the shares from the eligible shareholders. Tender offer route is one of the Two Routes generally chosen by the companies, i.e. Tender Offer and Open Market Through Stock Exchanges.
What is the Aster DM Healthcare Buyback Offer?
Aster DM Healthcare Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 57,14,285 Fully paid up Equity shares, adhering to the buyback price.
When Aster DM Healthcare Buyback offer will start?
As per the released schedule, the Aster DM Healthcare Buyback offer will start on FEBRUARY 20, 2020. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of Aster DM Healthcare Buyback at all times, we ensure you have access to the right data.
When is the closing date of Aster DM Healthcare Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of Aster DM Healthcare Buyback. The buyback would close on MARCH 5, 2020. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for Aster DM Healthcare Buyback?
The amount at which the shares are taken back by the company is referred to as Aster DM Healthcare Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.210/-, the price paid to each eligible shareholder.
What is the record date for Aster DM Healthcare Buyback offer?
Record date of Aster DM Healthcare Buyback is January 24, 2020. Record date is generally the day when eligible shareholders are declared. Furthermore, complying with Buyback regulations, letter of offer and Tender form is sent to the eligible shareholders.
What is the issue size of Aster DM Healthcare Buyback?
Aster DM Healthcare Buyback Size is Rs.120 Crores and is the total worth of Equity Shares the company plans on taking back. This amount is obtained from the total number of equity shares, multiplied by the Buyback price.
What is the necessity for Aster DM Healthcare Buyback?
This Buyback, which is being implemented through the Tender Offer route as prescribed under the Buyback Regulations, would involve a reservation of up to 15% of the Buyback Size for Small Shareholders. The Company believes that this reservation of up to 15% for Small Shareholders would benefit a large number of the Company’s public shareholders, who would be classified as Small Shareholders;
Who is the Registrar to Aster DM Healthcare Buyback offer?
The designated registrar of Aster DM Healthcare Buyback is Link Intime India Private Limited. You can find all the details related to the registrar in this report and contact them if you have any queries. You can check the details of the registrar, contact person, email address and more.
Who is the Manager to the Aster DM Healthcare Buyback offer?
Manager to the Aster DM Healthcare Buyback is Kotak Mahindra Capital Company Limited. Manager basically ensures that the company following up buyback strictly adheres to and in conformity with the provisions of the Companies Act and Buyback Regulations.
How to check Aster DM Healthcare buyback acceptance ratio?
Acceptance ratio is basically the proportion of shares the company accepts, to the final number of shares tendered. It refers to how much the company would buyback and how profitable it would be for you. You can also check how much profit (%) you will earn. Click on the link and check on the website page.
Where to find Aster DM Healthcare Buyback Dates / Events?
You can check the table for the list of events, as designed for the buyback. This article is your one and final destination to check all the Aster DM Healthcare Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as Aster DM Healthcare Buyback Dates.
What can be the Impact of Aster DM Healthcare Buyback on the Company?
The Buyback will not in any manner impair the ability of the Company to pursue growth opportunities or meet its cash requirements for business operations. The Buyback is expected to contribute to the overall enhancement of shareholder value and result in an increase in the return on equity of the Company. This Buyback is being undertaken, inter alia, for helping the Company to return surplus cash to the Eligible Shareholders broadly in proportion to their shareholding.
Where to find complete details on Aster DM Healthcare Buyback?
As mentioned already, this page would give you every single detail about this buyback. Also, you find the link to download the Draft / Letter of Offer. Each and every section is vividly and carefully placed, giving you insights into all major as well as minor aspects of the ratio. The article is also inclusive of all the links.
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