Olympus Capital Asia Initiates Block Trade in Aster DM Healthcare

Aster DM Healthcare Limited is one of the largest integrated private healthcare service providers operating in GCC (Gulf Cooperation Council) countries and It is also an emerging player in India. It has an inherent emphasis on clinical excellence and it is also one of the few entities in the world with a strong presence across primary, secondary, tertiary, and quaternary healthcare. The company has a total market capitalization of more than Rs.17,500 crores.

Olympus Capital Asia to sell stake in Aster DM 

Private equity firm Olympus is set to sell up to a 10% stake in Aster DM Healthcare on Friday through block deals, with the goal of raising around Rs 1,700 crore. According to the term sheet issued by Kotak Securities, Olympus has proposed a floor price of Rs 331 per share. This price represents a 7.1% discount to Thursday’s closing price of Rs 356.35, making the offering attractive to potential buyers. The base size of the offering is 2.5 crore shares, which constitutes 5% of Aster DM Healthcare’s total equity. Furthermore, there is an option to increase the size by an additional 2.5 crore shares, or another 5% of the company’s equity, if there is sufficient demand and the offering is oversubscribed. This strategic divestment by Olympus underscores the dynamic activity within the private equity space, particularly in India’s growing healthcare sector.

Reaction on Stock

The announcement of Olympus’s stake sale in Aster DM Healthcare has impacted the stock’s performance in the market. The stock reached a high of Rs 368.75 and is currently trading at Rs 358.75, which is up by 1% from the previous day’s closing price of Rs 356.35. This movement indicates an initial positive reaction from investors following the news of the block deal.

Conclusion: The planned stake sale by private equity firm Olympus in Aster DM Healthcare, aiming to raise around Rs 1,700 crore by divesting up to a 10% stake, has generated market interest. This strategic move is reflected in the stock’s recent high of Rs 368.75, with current trading at Rs 358.75, showcasing investor response to the announcement.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.