Aster DM Healthcare Limited (“Aster” or the “Company”), a leading integrated healthcare provider in India, announced two significant decisions approved by its Investment and Finance Committee on 30 July 2025. These decisions include the acquisition of an additional stake in its subsidiary and the execution of a long-term lease for a new hospital property in Bengaluru.

1. Acquisition of Additional Shares in Dr. Ramesh Cardiac & Multispecialty Hospital Pvt Ltd (DRCM)

• Background: Dr. Ramesh Cardiac & Multispecialty Hospital Pvt Ltd (DRCM), established in 1995 and headquartered in Vijayawada, Andhra Pradesh, specializes in cardiac and multispecialty healthcare services. It is a key subsidiary of Aster DM Healthcare, focusing on tertiary healthcare with a turnover of ₹258 crore and a profit of ₹12.82 crore for FY 2024-25.

• Shareholding Change: As per the terms of a Shareholders Agreement (SHA) dated 30 April 2016, the promoter group of DRCM exercised its put option on 5 March 2025 to sell a collective 13% stake to Aster DM Healthcare. Following this acquisition, Aster’s shareholding in DRCM has increased from 57.49% to 70.49%.

• Transaction Details:

  • Mode of Acquisition: Cash consideration.

  • Cost of Acquisition: ₹63.01 crores.

  • Regulatory Approvals: No additional governmental or regulatory approvals are required for this acquisition.

  • Timeline: Expected to be completed within 1–2 months from the date of disclosure.

• Strategic Rationale: The acquisition solidifies Aster’s control over DRCM, enabling deeper integration of healthcare services and operational synergies. It strengthens the group’s presence in the cardiac and multispecialty segment, which complements Aster’s broader healthcare portfolio.

2. Lease Agreement for Composite Property at Yeshwanthpur, Bengaluru

• Property and Purpose: Aster DM Healthcare has approved the execution of a lease agreement with KEMWELL Private Limited for a composite property in Yeshwanthpur, Bengaluru, Karnataka. The property will be developed into a new super-specialty hospital with an estimated capacity of approximately 500 beds.

• Lease Terms:

  • Duration: 30 years lease term with a lock-in period of 30 years for the lessor and 12 years for the lessee.

  • Financials: The Company will pay rent calculated per square foot of chargeable area plus applicable taxes. An interest-free refundable security deposit of ₹58.65 crores has been agreed upon.

• Project Timeline: The hospital is expected to become operational in the second half of FY 2028-29.

• Investment and Financing: The estimated investment for setting up the hospital is approximately ₹580 crores, to be funded through a combination of bank loans and internal accruals.

• Strategic Importance:

  • Yeshwanthpur is a rapidly developing commercial and residential hub in northwest Bengaluru, benefiting from excellent infrastructure, metro connectivity via the Green Line of Namma Metro, and proximity to major railway junctions.

  • The new hospital aims to cater to the growing demand for advanced tertiary healthcare and super-specialty medical services in the region.

• No Related Party Transaction: Neither KEMWELL Private Limited nor any other party involved is related to Aster’s promoters or promoter group, and the transaction is at arm’s length.

3. Compliance with SEBI Regulations

Both disclosures comply with:

• Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

• The SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated 11 November 2024 detailing the requirements for disclosures of material events.

• The company has made the disclosures available on its website at www.asterdmhealthcare.in.

4. About Aster DM Healthcare Limited

• Founded in 1987, Aster DM Healthcare is one of India’s leading healthcare providers with a network of hospitals, clinics, pharmacies, and diagnostic centers across India and the Middle East.

• The company is publicly listed on BSE (Scrip Code: 540975) and NSE (Symbol: ASTERDM).

• Aster focuses on delivering accessible, affordable, and quality healthcare with an emphasis on tertiary and super-specialty care.

• The company’s growth strategy includes organic expansion and strategic acquisitions to strengthen its presence in high-growth healthcare segments.

5. Outlook

With the increased stake in DRCM, Aster DM Healthcare solidifies its foothold in cardiac and multispecialty care. The upcoming 500-bed super-specialty hospital in Yeshwanthpur is set to meet rising demand for advanced medical services in Bengaluru, aligning with the company’s vision of expanding its footprint in key urban centers. These strategic initiatives underline Aster’s commitment to growth, patient care excellence, and creating long-term shareholder value.

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