Aster DM Converts ₹102.46 Cr Loan to Equity in Subsidiary
Aster DM Quality Care Limited announced that its Board of Directors has approved the conversion of a pre-existing loan of INR 102.46 Cr extended to its wholly-owned subsidiary, Sri Sainatha Multispeciality Hospitals Private Limited, into equity shares. This internal capital restructuring will result in Sri Sainatha issuing 10,24,62,779 equity shares of face value INR 10 each to Aster DM. The transaction does not impact the ownership or control of the subsidiary. Additionally, the company will seek shareholder approval for special business via Postal Ballot and has proposed the termination of Operation & Management Services Agreement and Medical Services Agreement with DM Education and Research Foundation.
Key Highlights
- Loan of ₹102.46 Cr to subsidiary converted into equity.
- Subsidiary Sri Sainatha to issue 10.24 Cr equity shares.
- No change in ownership or control of the subsidiary.
- Shareholder approval to be sought via Postal Ballot.
- Agreements with DM Education and Research Foundation to be terminated.
Price Impact
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