Aster DM shares: Why this stock fell 4% today | Block deal

Shares of Aster DM Quality Care Ltd, erstwhile Aster DM Healthcare Ltd, fell 4 per cent in Wednesday’s trade amid reports that investor Centella Mauritius, a special purpose investment  controlled by the affiliates of TGP Inc was looking to sell 6.24 crore company shares, or 7.2 per cent stake, in block deals at a floor price of Rs 766.10 apiece, through Citi. The stock fell as the floor price represented a 6.34 per cent discount to Tuesday’s closing price.

Aster DM is one of the largest integrated healthcare providers in GCC and India with a strong presence across seven countries. The company has 87.17 crore shares outstanding, of which 25.62 crore were in the public float as of July 13, Bloomberg reported.

Centella Mauritius held 9.9 per cent stake in Aster DM at the end of June quarter. Its residual stake will be subject to a 60-day lock in period.

Following the development, shares of Aster DM fell 4.26 per cent to open at Rs 783. A total of 52.09 crore shares changed hands on the counter so far, aggregating Rs 400 crore. This was against a two-week average volume of 1.64 lakh shares.

Aster DM is a consensus 'Buy' with 10 'Buy' calls, one 'Hols' and one 'Sell' call. The 12-month Bloomberg consensus target for the stock at Rs 922.25 implies 12.7 per cent potential upside.

Centrum Broking on August 14 suggested a 'Buy' on the stock and a target of Rs 940. SMIFS on August 10 suggested 'Accumulate' with a target of Rs 920. Kotak Securities has 'Add' rating on the stock with a target of Rs 900. PL Capital sees the stock at Rs 920.