Aster DM Concludes Separation of India, Gulf Businesses

Reportedly, Dr Azad Moopen will remain the founder chairman and Alisha Moopen will serve as the MD and Group CEO of Aster GCC.

Multinational healthcare player, Aster DM Healthcare has successfully concluded the separation of its GCC and India businesses into two distinct and standalone entities.

In November, the hospital chain agreed to sell a majority stake in its Gulf business to a consortium led by private equity firm Fajr Capital, a sovereign-backed private equity firm, for $1 billion.

Per the deal, a consortium of investors led by Fajr Capital acquired a 65% stake in Aster GCC, with the Moopen family retaining a 35% stake alongside management and operational rights.

Reportedly, Dr Azad Moopen will remain the founder chairman and Alisha Moopen will serve as the MD and Group CEO of Aster GCC. Moreover, the Moopen Family will continue to retain operational control of the company.

With this divestment, the company aims to streamline its operations and focus on other growth opportunities. Industry experts are closely monitoring the situation, anticipating potential ripple effects in the regional healthcare landscape.

Dr Azad Moopen, founder chairman, Aster DM Healthcare, said, “ We are glad that Fajr Capital and its consortium of partners has chosen to partner with us on this growth journey and we are confident that their demonstrated expertise will empower our expansion plans within GCC’s dynamic healthcare landscape, especially Saudi Arabia. Together, we envision a future where Aster’s business in the GCC continues to deliver best-in-class healthcare services to its patients across the region.”

He further noted that the GCC business has tremendous growth potential and will be focused on tapping the opportunities in the region.

Fajr Capital, the lead member of the consortium, contributed the bulk of the funds for the deal. The Moopen family funded its share of the transaction through dividends secured from the listed India business.

The promoters' 42% stake in the listed entity was pledged against a debt of $80 million, which was expected to be retired following the transaction.

Market Expansion Plans

Recently Aster DM Healthcare, outlined expansion plans, intending to add 1,500 beds over the next 2 to 3 years.

The allocated capital is around INR 850-900 Cr for this initiative. The expansion aims to enhance healthcare accessibility and cater to the growing demand for quality medical services.

Sharing thoughts, Dr Nitish Shetty, CEO, Aster DM Healthcare, said, “The expansion is part of the company's commitment to meeting the growing healthcare demands and an objective to become one of the top three players in the country. We intend to add to increase its capacity by adding 1500 beds over the next three years.”

The expansion plan also involves increasing capacity in existing hospitals. Medcity and MIMS Kannur will each receive an additional 100 beds, while Aster Whitefield is set to expand with an additional 159 beds.

Additionally, Aster DM Healthcare is evaluating prospects in new markets such as Maharashtra, Tamil Nadu, and Uttar Pradesh.