Aster DM Healthcare Ltd enters into agreement to operate 130-bed tertiary hospital at Sasthamkotta

Aster DM Healthcare Limited has entered into Hospital Operation and Management Agreement with Padmavathy Medical Foundation (PMF) on May 31, 2023. PMF is a 130-bed tertiary super specialty hospital situated in Sasthamkotta, Kollam District, Kerala.

Aster DM Healthcare Limited ('the Company') along with its subsidiaries in India has existing installed capacity of 4,417 beds as on date. The Company's occupancy was 68% percent of its operational beds during FY 2022-23.

The proposed capacity will be added with effect from August 01, 2023. With this total installed capacity of the Company shall be increased to 4,547 beds.

The Hospital Building and Infrastructure is being developed by PMF. The Company shall pay an interest free refundable security deposit of INR 7 crores. The Hospital may require further capex infusion to the tune of INR 5 crores during the initial 2 years of operations and the same shall be infused through internal accruals of the Company.

This is a part of O&M asset light model to add 500-700 beds in India, which will have better returns with minimal capex investment.

Shares of Aster DM Healthcare Limited was last trading in BSE at Rs. 270.55 as compared to the previous close of Rs. 271.15. The total number of shares traded during the day was 25360 in over 976 trades.

The stock hit an intraday high of Rs. 271.95 and intraday low of 267.25. The net turnover during the day was Rs. 6854922.00.

Source : Equity Bulls

Keywords

AsterDMHealthcare INE914M01019 Hospital OperationandManagement Agreement PadmavathyMedicalFoundation 130beds TertiarySuperSpecialtyHospital