Aster DM Quality Care Limited has approved the conversion of a pre-existing inter-company loan amounting to ₹102.46 crore into equity shares of its wholly-owned subsidiary, Sri Sainatha Multispeciality Hospitals Private Limited. This move is part of an internal capital restructuring. The conversion involves the issuance of 10,24,62,779 equity shares, each with a face value of ₹10, to Aster DM Quality Care. The transaction does not alter the subsidiary’s ownership or control.
Board Approves Capital Restructuring
At a board meeting held on November 6, 2026, Aster DM Quality Care Limited approved a significant internal capital restructuring initiative. The company will convert a loan of ₹102.46 crore, previously extended to its wholly-owned subsidiary, Sri Sainatha Multispeciality Hospitals Private Limited (“Sri Sainatha”), into equity shares. This strategic move aims to strengthen the subsidiary’s balance sheet without impacting its ownership or control by the parent company.
Key Transaction Details
Under the approved conversion, Sri Sainatha will issue 10,24,62,779 equity shares to Aster DM Quality Care Limited. Each share has a face value of ₹10. The total value of the conversion is based on the outstanding loan amount. The transaction is considered an arm’s length basis, with valuation support from a report procured from Krol Advisory Private Limited. The company will continue to hold 100% of the equity share capital in Sri Sainatha following this conversion.
Other Board Decisions
In addition to the capital restructuring, the Board also resolved to seek shareholder approval for special business via a Postal Ballot. Furthermore, the Board decided to terminate/close the Operation & Management Services Agreement dated March 4, 2016, and the Medical Services Agreement dated April 1, 2026, with DM Education and Research Foundation (“DMERF”). This termination is proposed to be by mutual consent, aiming to reduce related party transactions within the Group.
Source: BSE
