Aster DM Healthcare shares zoom 15%, hit 52-week high on sale of Gulf business for $1.01 billion
Aster DM Healthcare rallied nearly 15% to Rs 382 in Wednesday's trade on BSE after the firm announced that it would sell its stake in its Gulf business to Alpha GCC Holdings for $1.01 billion as it looks to separate its businesses in India and the Middle East. The sale is anticipated to be completed in quarter 4 of the financial year ending 2024.
“The board of directors of Affinity approved the sale of shares held by Affinity in Aster DM Healthcare FZC to Alpha GCC Holdings Limited and the execution of definitive agreements in connection with the Transaction,” said Aster in a filing.
The buyer, owned by Aster India's promoters and funds managed by Fajr Capital Advisors Limited, will have a shareholding ratio of 35:65, respectively.
The promoters express a commitment to both India and the GCC region, maintaining a meaningful role after the transaction's completion.
At 10.38 am, the scrip was trading 9.7% higher at Rs 364.9 on BSE. On a year-to-date basis, the stock has surged nearly 60%, while it has risen 40% in the past six months.
As per Trendlyne data, the average target price of the stock is Rs 336, which shows a downside of 8% from the current market prices.
The consensus recommendation from 7 analysts for the stock is a 'Buy'.
Technically, the stock's day RSI (14) is at 46.7. The RSI below 30 is considered oversold and above 70 is overbought, Trendlyne data showed.
MACD is at 1.8, which is above its Center Line, but below signal line.
Aster DM Healthcare stock stands higher than the 5-day, 10-day, 20-day, 30-day, 50-day, 100 day, 150-day and 200-day moving averages.
Aster Healthcare operates 32 hospitals, 127 clinics, 521 pharmacies, 16 laboratories and 189 patient experience centers in seven countries in
