PE firm True North sells Aster DM Healthcare stake worth $65 million

Industry:    2019-06-27

Homegrown private equity firm True North has sold a part of its stake in India and Gulf based hospital chain Aster DM Healthcare Ltd for Rs448.5 crore (approx $65 million), data from stock exchange shows.

True North, which as of 31 March held a 10.38% stake in the company, has sold over 7% through block trades, thus exiting majority of its shareholding in the company.

The shares were bought by various investors including Fidelity, HDFC Mutual Fund, Ontario Pension Fund, Tata AIA Life Insurance Co Ltd and Steinberg India Opportunities Fund, exchange data shows.

The shares were sold at 120 apiece. On Wednesday, Aster DM’s shares close at Rs127.75, down over 6% on the BSE.

Founded by Dr. Azad Moopen in 1987 as a single clinic, Aster DM’s portfolio of healthcare facilities consists of hospitals, clinics and retail pharmacies in the Gulf Cooperation Council (GCC) states; multi-specialty hospitals and clinics in India. Aster’s hospitals in India are located in Kochi, Kolhapur, Kozhikode, Kottakkal, Bengaluru and Hyderabad and are operated under the Aster Medcity, Malabar Institute of Medical Sciences (MIMS) and Aster Prime Hospital brands.

True North invested in Aster DM in 2008. The company also counts PE firm Olympus Capital as it’s investor.

Aster DM Healthcare went public in February 2018, in an initial public offering which saw the company raise 980 crore, selling it’s shares at a price of 190 apiece. True North did not sell any shares in the company’s IPO.

However, the company’s share price is down around 35% since listing, as of Wednesday.

True North’s other healthcare investments include Kerala Institute of Medical Sciences, a hospital chain in Kerala; Trivitron Healthcare, a medical device manufacturer and Cloudnine, a maternity and infant care chain.

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