Shares of Aster DM Healthcare rallied 5% on Wednesday 27 November after the company announced their plans to acquire the remaining 13% stake in Kolhapur based Aster Aadhar Hospital.

Through this acquisition, the company will acquire a 100% stake in Aster Aadhar Hospital, increasing it from the 87% that the company previously held. The transaction will be executed in two tranches, and are expecting the transaction to be completed by 31 December. 

In an effort to expand their geographical presence into tier-II and tier-III cities to attract increasing demand, most hospitals are undertaking the brownfield route for capacity expansion in hopes of a quicker turnaround. 

Aster Aadhar Hospital in Kolhapur has 245 beds and over 25 specialities. This acquisition will strengthen the company’s goal to meet the increasing demand for healthcare in India. The management are confident about achieving a revenue CAGR of 18-20% year-on-year (YoY) over FY 25-29 for its India business, which will be driven by increased occupancy and capacity expansion. 

The company is also planning to increase their bed capacity to around 6,800 by fiscal year 2027 by adding another 1,800 beds. 

Moreover, the company also remains focused on niche specialties to further improve its Average Revenue Per Occupied Bed. 

For the July-September quarter, the company’s Average Revenue Per Occupied Bed grew to Rs 43,000 from Rs 38,700 reported during the previous fiscal year. 

At 12:52 pm, the shares of Aster DM were trading 4.67% higher at Rs 460.40 on NSE.

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