Aster DM Healthcare Ltd (the Company) has entered into Hospital Operation and Management Agreement with Padmavathy Medical Foundation (PMF) on May 31, 2023. PMF is a 130-bed tertiary super specialty hospital situated in Sasthamkotta, Kollam District, Kerala.
This is a part of the Company’s O&M asset light model to add 500-700 beds in India, which will have better returns with minimal capex investment.
PMF’s 130 beds will Aster DM’s total bed capacity to 4,547 beds. The proposed capacity will be added with effect from August 01, 2023.
The Hospital Building and Infrastructure is being developed by PMF. The term of the agreement is 15 years from effective date. i.e August 01, 2023. The Company will be required to make a monthly payment to PMF based on revenue achievement. The Company shall pay an interest free refundable security deposit of INR 7 crores. The Hospital may require further capex infusion to the tune of INR 5 crores during the initial 2 years of operations and the same shall be infused through internal accruals of the Company.
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