Aster DM Healthcare Ltd inks O&M agreement to operate hospital in Mandya

Aster DM Healthcare Limited ('the Company') has entered into a Hospital Operation and Management Agreement (O&M) with Vritika Hospitals Pvt Ltd ('VHPL') & Bharathi Education Trust, for operating and managing G. Madegowda Super Specialty Hospital ('GMSSH') Mandya, Karnataka on December 29, 2022. GMSSH is a 100-bed tertiary super specialty hospital situated in Mandya town, 95 kms away from Bangalore.

The term of O&M is for 15 years with a lock in period of 5 years for the Company and 15 years for VHPL & Bharathi Education trust.

GMSSH has 100 beds capacity and with this total installed capacity of the Company shall be increased to 4,380 beds. The proposed capacity will be added within 3 months from the date of signing the O&M agreement.

The Hospital Building and Infrastructure is being developed by VHPL & Bharathi Education trust. The Company shall pay an interest free refundable security deposit of INR 5 crores.

The Hospital may require further capex infusion to the tune of INR 1.5 crores during the initial 2 years of operations and the same shall be infused through internal accruals of the Company.

This is a part of O&M asset light model to add 500-700 beds in India, which will have better returns with minimal capex investment.

Shares of Aster DM Healthcare Limited was last trading in BSE at Rs. 231.10 as compared to the previous close of Rs. 231.50. The total number of shares traded during the day was 8203 in over 357 trades.

The stock hit an intraday high of Rs. 234.90 and intraday low of 230.10. The net turnover during the day was Rs. 1901087.00.

Source : Equity Bulls

Keywords

AsterDMHealthcare INE914M01019 Operation Management Agreement Hospital Mandya Karnataka