Aster DM Healthcare Limited Buyback 2020

(i) From a single clinic to a performance-driven healthcare enterprise spread across 308 establishments in 9 countries and growing, Aster DM Healthcare has transitioned into being a growing network across the Middle East, India, and the Far East.

(ii) Currently one of the largest and fastest-growing conglomerates in the MENA region, Aster DM Healthcare covers the full spectrum of healthcare services. An expansive portfolio includes hospitals, clinics, Diagnostic centers, and retail pharmacies.

(iii) Headquartered in Dubai, the Aster DM network now encompasses 17,594 employees, 2860  doctors with several JCI accredited Hospitals, clinics, and Diagnostic Centres.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Jan 24 2020
Buyback Offer Amount: ₹ 120 Cr
Date of Board Meeting approving the proposal: Jan 09 2020
Date of Public Announcement: Jan 09 2020
Buyback Offer Size: 1.13%
Buyback Number of Shares: 57,14,285
Price Type: Tender Offer
FV: 10
Buyback Price: ₹ 210 Per Equity Share

Details of Buyback:

The board has approved a proposal to Buy-back up to 57,14,285 (Fifty-seven lakhs fourteen thousand two hundred and eighty-five only) equity shares of the Company for an aggregate amount not exceeding Rs. 120 crores (Rupees One Hundred and Twenty Crores only) (the 'Buyback Size'), being 1.13% of the total paid-up equity share capital, at Rs. 210 (Rupees Two Hundred and Ten only) per equity share (the 'Buyback').

Salient financial parameters:

Particulars (in Crores) 2019 2018 2017 2016 2015
INCOME
REVENUE 7,795 6,623 5,818 5,175 3,826
Other Income 35 45 37 25 23
TOTAL REVENUE 7,997 6,767 5,968 5,275 3,899
EXPENSES
Operating And Direct Expenses 2,525 2,160 2,002 1,723 1,338
Employee Benefit Expenses 2,688 2,271 2,055 1,629 1,154
Finance Costs 179 185 354 189 79
Depreciation And Amortisation Expenses 306 298 322 243 144
Other Expenses 1,992 1,778 1,657 1,552 994
TOTAL EXPENSES 7,585 6,591 6,275 5,237 3,593
Profit
PAT 368 279 98 8 272
Source: Moneycontrol.

How to Participate in buyback?

1. Firstly to be eligible for the buyback the investor should have shares of Aster DM Healthcare Limited Buyback 2020 in demat or physical form as on record date on [ 24.01.2020] 2. Once you have shares in demat, you can participate in the buyback process which is opening from [ Not Announced ] by selling your shares through your broker on NSE or BSE. 3. Then on [ Not Announced ], the settlement will be done for accepted shares and unaccepted shares will be returned to your demat account

Profit from the buyback on the bases of acceptance Ratio:

Buy 952 Shares at CMP of Rs.164 ( 2,00,000/210=952)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,56,910 1,56,910 1,56,910 1,56,910
No. of Shares buyback 314 476 714 952
BuyBack Profit 14,457 21,905 32,857 43,810
Profit 9.21% 13.96% 20.94% 27.92%

Recommendation:

Review and Recommendation of from our side is Aster DM Healthcare Limited Buyback 2020 : Rating: 3/10 [ The buyback size is very small. Entitlement is around 7-8%. ] Fair: 1-5 Good: 5-7 Excellent: 7-10

    Dishman Carbogen board meeting is still going on. Buy back will be announced very soon after the end of the meeting. Hope price will be very attractive. The stock today & yesterday made upper circuit.

    Dishman Carbogen fall from high price 396 in 2018 to 80 in news of IT search of group companies. But no effect on financial position.

    Board meeting is held tomorrow, on 16th Jan for buy back and Dec result. According to moneycontrol, buyback is likely at Rs. 150.
    In short term return may be more than double.

    SIZE IS ONLY 120 CRORE.

    SMALL SIZE OF BUYBACK

    ENTITLEMENT= 10%

    (i) The company has a total Net-worth of ~Rs. 3213 crores on balance sheet as on 31.03.2019.

    (ii) As per SEBI guidelines, the maximum size of the buyback is 25% of Net-worth. So, accordingly, in Aster DM Healthcare, the maximum size of the buyback would be Rs.800 Crores.

    (iii) The company had ~Rs.227 Crores of cash on books and Rs.16 Crores as deposit money.

    (iv) Individual share capital up to Rs. 2 Lacs holding shares are 1,19,70,884( 2.23% of total equity )

    (v) The company has a good pedigree of investors in the company. A lot of mutual funds, AIFs, FPIs are a part of this company. Detail here. https://www.bseindia.com/corporates/shpPublicShareholder.aspx?scripcd=540975&qtrid=103.00&QtrName=September%202019

    The Buyback size could be around 200-300 Crores. However, the picture would be clear on 09.01.2020.

    Today, the share can open gap up with the news of buyback.