Aster DM Healthcare Buyback Review, Offer Details, Price, Dates, Size & more

In 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.

Aster DM Healthcare Limited Buyback Details

Buyback TypeTender Offer
Opening DateFEBRUARY 20, 2020
Closing DateMARCH 5, 2020
Buyback Offer Amount120 Crores
Buyback No. of Shares57,14,285
Face ValueRs.10
Date of Buyback ApprovalJanuary 09, 2020
Date of Public AnnouncementJanuary 13, 2020
Buy Back PriceRs.210/-
Buy Back Premium39.67%
Date of Board MeetingJanuary 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 RatioTotal Shares AcceptedBuyback PriceBuyback AmountProfitProfit%
20%2002104200090005.45%
40%400210840001800010.91%
60%6002101260002700016.36%
80%8002101680003600021.82%
100%10002102100004500027.27%

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’.


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]

ParticularsFor the 6 months ended
(Unaudited)
12 Months period ended March 31
(Audited)
201920182017
Total Income373.72678.93546.17410.16
Total Expenses (excluding finance cost, depreciation & amortization)394.92628.89633.37722.65
Interest15.4810.8653.95228.33
Depreciation and amortization expenses44.6764.3859.0867.57
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 Capital505.23505.23*505.23403.22
Reserve and Surplus2,410.752,420.782,366.481,870.59
Networth2,915.982,926.012,871.712,273.81
Total Debt (Excluding working capital loans)18.5819.4826.62548.06

Aster DM Healthcare Limited Buyback Dates

Date of Board Meeting approving the BuybackJanuary 09, 2020
Date of publication of Public Announcement for BuybackJanuary 13, 2020
Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders24 January, 2020
Buyback Opening dateFebruary 20, 2020
Buyback Closing dateMarch 5, 2020
Last Date of verification of Tender Forms by the RegistrarMarch 16, 2020
Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the RegistrarMarch 16, 2020
*Last date of Settlement of Bids on the BSE LimitedMarch 17, 2020
Last date of return of unaccepted Equity Shares by BSE LimitedMarch 17, 2020
*Last date of Extinguishment of Equity SharesMarch 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:

PublicationLanguageEdition
Business StandardEnglishAll editions
Business StandardHindiAll editions
DeshabhimaniMalayalamKochi Edition

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-backPost Buy-back
(Assuming Full Acceptance)
Net worth (Rs in Crores)2,926.012,806.01
Return on Net worth (%)1.66%1.73%
Earnings Per Share (Rs)0.960.97
Book Value per Share (Rs)57.9156.17
P/E as per the latest audited standalone financial statements168.16166.25
Total Debt / Equity Ratio0.010.01

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


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


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