Aster DM healthcare

Dear @vamsi21 thank you for your perspective.

My thoughts:
– On sale of GCC business:
If there is a slump sale of GCC business and then listing on ADGM by new investors/PE then it would be loss to current shareholders as the value they get from sale would be very very less than it’s intrinsic value. The PEs being a ruthless negotiators will give very less value because the only money they are going to make is from delta of buy and sell valuations.

I am not sure what benefit promoters themselves will get out of this sale. No promoter will sell their business because the stock price is not valued by market! Less valuation of stock price is not going to individually affect them unlike rest of us retail investors (unless they are selling their stake)

Why doesn’t the promoters themselves list the GCC subsidiary on ADGM? Can an Indian listed company list it’s subsidiary on foreign stock exchange?

This whole thing is negative for existing investors and the share price should decrease but the stock price keeps increasing. So I am not able to understand why market is ignoring this sale of business.

– Investment thesis:
I live in Riyadh and am very much aware about the healthcare business in GCC. In fact there is Aster Sanad hospital near my residence and I have seen the sheer patients crowd there.

I would prefer to invest in a hospital which has insurance patients (GCC) rather than cash (India). As an insured patient myself, I have never bothered to what and how much I am being charged (pricing power for hospitals). I will not get into the business practices adopted by hospitals for insured patients.

Just look at the healthcare – insurance nexus at America which has made healthcare unaffordable to non insured patients there. Unfortunately/fortunately (depending on which side of table you are) same is being now replicated to other countries.

• Bottom-line:
  Aster was and is still my preferred stock but this overhang of sale of GCC business (GCC was my main premise for investment) is unsettling me.