Aster DM Quality Care Limited has approved the conversion of a pre-existing loan of ₹102.46 crore into equity shares. This internal capital restructuring involves its wholly-owned subsidiary, Sri Sainatha Multispeciality Hospitals Private Limited, issuing 10,24,62,779 equity shares to Aster DM Quality Care. The transaction is part of an internal restructuring and does not alter the ownership or control of the subsidiary.
Board Approves Capital Restructuring
Aster DM Quality Care Limited announced today that its Board of Directors has approved the conversion of a significant loan into equity within its subsidiary structure. The company will convert a loan of INR 102.46 Crore, previously extended to Sri Sainatha Multispeciality Hospitals Private Limited, into equity shares. This move is described as part of an internal capital restructuring initiative.
Subsidiary Equity Issuance
As part of this conversion, Sri Sainatha, a wholly-owned subsidiary, will issue 10,24,62,779 equity shares to Aster DM Quality Care. Each share will have a face value of INR 10. The company has clarified that this transaction does not impact the ownership or control of the subsidiary, maintaining Aster DM Quality Care’s 100% holding.
Operational and Agreement Updates
Additionally, the Board has resolved to seek shareholder approval for special business through a Postal Ballot. Shareholders will be notified in due course. The company also announced the proposed termination/closure of the Operation & Management Services Agreement and the Medical Services Agreement with DM Education and Research Foundation (DMERF). This termination is intended to be by mutual consent, aiming to reduce related party transactions within the Group and eliminate an ongoing stream of such transactions with DMERF.
Financial and Operational Details of Sri Sainatha
The details provided in Annexure I indicate that Sri Sainatha Multispeciality Hospitals Private Limited was incorporated on May 24, 2007. Its authorized share capital is INR 10,10,58,850/-, divided into Class A, Class B equity shares, and preference shares. The paid-up share capital is INR 7,01,59,380/-. For the financial year ended March 31, 2026, Sri Sainatha reported a turnover of INR 79.43 Crore.
Transaction Rationale and Approvals
The conversion of the loan into equity shares is a non-cash transaction, based on a valuation report from Krol Advisory Private Limited. The company stated that this is an internal capital restructuring aimed at strengthening its balance sheet. The acquisition of shares falls under a related party transaction, as Sri Sainatha is a wholly-owned subsidiary. The transaction is proposed to be completed within 3 months.
Source: BSE
