LETTER OF OFFER THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION This Letter of Offer is being sent to you as a registered Equity Shareholder (as defined below) as on the Record Date (as defined below) in accordance with the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended. If you require any clarifications about the action to be taken, you should consult your Stock Broker (as defined below) or your investment consultant or the Manager to the Buyback i.e. Kotak Mahindra Capital Company Limited or the Registrar to the Buyback, i.e. Link Intime India Private Limited. Please refer to the “Definitions” section of this Letter of Offer for definitions of capitalized terms. ASTER DM HEALTHCARE LIMITED Registered Office: IX/475L, Aster Medcity, Kuttisahib Road, Near Kothad Bridge, South Chittoor P.O. Cheranalloor, Kochi 682 027, Kerala. Phone: +91 0484 6699228; Fax: +91 0484 6699862; Email: [email protected]; Website: www.asterdmhealthcare.com Corporate Office and Correspondence Address: No. 1785, Sarjapur Road Sector 1, HSR Layout, Ward No.174, Agara Extension, Bangalore -560102 India; Tel.: 080 22585845 Corporate Identification Number (CIN): L85110KL2008PLC021703 Contact Person: Ms. Puja Aggarwal, Company Secretary and Compliance Officer Phone: 080 22585845; Email: [email protected] OFFER FOR BUYBACK OF UP TO 57,14,285 (FIFTY SEVEN LAKHS FOURTEEN THOUSAND TWO HUNDRED AND EIGHTY FIVE) FULLY PAID-UP EQUITY SHARES OF FACE VALUE OF RS. 10/- (RUPEES TEN ONLY) EACH OF THE COMPANY (AS DEFINED BELOW), REPRESENTING APPROXIMATELY 1.13% OF THE TOTAL PAID-UP EQUITY SHARE CAPITAL OF THE COMPANY AT A PRICE OF Rs. 210/- (RUPEES TWO HUNDRED AND TEN ONLY) PER EQUITY SHARE (“BUYBACK PRICE”) PAYABLE IN CASH FOR AN AGGREGATE AMOUNT OF UP TO Rs. 120 CRORES/- (RUPEES ONE HUNDRED AND TWENTY CRORES ONLY) (“BUYBACK SIZE”), WHICH IS 4.69% OF THE FULLY PAID-UP EQUITY SHARE CAPITAL AND FREE RESERVES AS PER THE LATEST AUDITED STANDALONE FINANCIAL STATEMENTS OF THE COMPANY AS AT MARCH 31, 2019 AND 5.42% OF THE FULLY PAID-UP EQUITY SHARE CAPITAL AND FREE RESERVES AS PER THE LATEST AUDITED CONSOLIDATED FINANCIAL STATEMENTS OF THE COMPANY AS AT MARCH 31, 2019, ON A PROPORTIONATE BASIS THROUGH THE “TENDER OFFER” ROUTE AS PRESCRIBED UNDER THE BUYBACK REGULATIONS FROM ALL OF THE SHAREHOLDERS OF THE COMPANY WHO HOLD EQUITY SHARES AS ON THE RECORD DATE (AS DEFINED BELOW) 1. The Buyback is in accordance with Article 12 of the Articles, Sections 68, 69 and 70 and all other applicable provisions, if any, of the Companies Act, the SCD Rules (to the extent applicable) and is in compliance with the Buyback Regulations statutory modifications or re-enactments thereof, for the time being in force and subject to such other approvals, permissions and sanctions as may be necessary, and such other conditions and modifications, if any, as may be prescribed or imposed by the appropriate authorities including the RBI, SEBI and the Stock Exchanges while granting such approvals, permissions and sanctions, which may be agreed to by the Board. 2. The Buyback is within the statutory limits of 10% of the total paid-up equity share capital and free reserves of the Company as per its standalone and consolidated audited financial statements as at March 31, 2019 (the latest audited financial statements available as on the date of the Board Meeting recommending the proposal of the Buyback). The Maximum Buyback Size is 4.69% and 5.42% of the aggregate of the total paid-up equity share capital and free reserves of the Company on standalone and consolidated basis, respectively, and represents approximately 1.13% of the total paid-up equity share capital of the Company. 3. A copy of the Public Announcement, the Draft Letter of Offer and this Letter of Offer (along with the Tender Form) shall be available on the website of the Securities and Exchange Board of India at: http://www.sebi.gov.in and also on the website of the Company at: http://www.asterdmhealthcare.com/investors/. 4. The Letter of Offer will be sent to Equity Shareholder(s) (as defined below)/beneficial owner(s) of Equity Shares as on the Record Date i.e. January 24, 2020 (“Eligible Shareholders”). 5. The procedure for tendering and settlement is set out in paragraph 20 on page 54 of this Letter of Offer. The Form of Acceptance-cum-Acknowledgement (the Tender Form) will be enclosed together with the Letter of Offer. 6. For mode of payment of consideration to the Eligible Shareholders, please refer to paragraph 20.26 on page 59 of this Letter of Offer. 7. Eligible Shareholders are advised to read this Letter of Offer and in particular, refer to Details of the Statutory Approvals (paragraph 17 on page 47) and Note on Taxation (paragraph 21 on page 60) of this Letter of Offer before tendering their Equity Shares in the Buyback. BUYBACK PROGRAMME BUYBACK OPENS ON: THURSDAY, FEBRUARY 20, 2020 BUYBACK CLOSES ON: THURSDAY, MARCH 5, 2020 LAST DATE OF RECEIPT OF COMPLETED TENDER FORMS AND OTHER SPECIFIED DOCUMENTS BY THE REGISTRAR TO THE BUYBACK: MONDAY, MARCH 9, 2020 BY 5:00 PM MANAGER TO THE BUYBACK REGISTRAR TO THE BUYBACK Kotak Mahindra Capital Company Limited Link Intime India Private Limited Address: 27BKC, 1st Floor, Plot No. C-27, “G” Block, Bandra Kurla Complex, Bandra Address: C-101, 247 Park, (East), Mumbai - 400051 L.B.S. Marg, Vikhroli West, Mumbai 400 083 Phone: +91-22-4336-0128 Phone: +91 22 49186200 Fax: +91-22-6713-2447 Fax: +91 22 49186195 Contact Person: Mr. Ganesh Rane Contact Person: Mr. Sumeet Deshpande Email: [email protected] Email: [email protected] Website: www.investmentbank.kotak.com Website: www.linkintime.co.in SEBI Registration Number: INM000008704 SEBI Registration Number: INR000004058 Validity Period: Permanent Validity Period: Permanent CIN:U67120MH1995PLC134050 CIN: U67190MH1999PTC118368 1 TABLE OF CONTENTS 1. SCHEDULE OF ACTIVITIES ................................................................................................................. 6 2. DEFINITION OF KEY TERMS ............................................................................................................... 7 3. DISCLAIMER CLAUSE ......................................................................................................................... 11 4. TEXT OF THE RESOLUTION PASSED AT THE MEETING OF THE BOARD OF DIRECTORS ............................................................................................................................................ 13 5. DETAILS OF THE PUBLIC ANNOUNCEMENT ............................................................................... 19 6. DETAILS OF THE BUYBACK .............................................................................................................. 19 7. AUTHORITY FOR THE BUYBACK .................................................................................................... 21 8. NECESSITY OF THE BUYBACK ......................................................................................................... 21 9. MANAGEMENT DISCUSSION AND ANALYSIS OF THE LIKELY IMPACT OF THE BUYBACK ON THE COMPANY .......................................................................................................... 22 10. BASIS OF CALCULATING THE BUYBACK PRICE ........................................................................ 26 11. SOURCES OF FUNDS FOR THE BUYBACK ..................................................................................... 27 12. DETAILS OF THE ESCROW ACCOUNT AND THE AMOUNT DEPOSITED THEREIN .......... 27 13. CAPITAL STRUCTURE AND SHAREHOLDING PATTERN ......................................................... 28 14. BRIEF INFORMATION OF THE COMPANY.................................................................................... 32 15. FINANCIAL INFORMATION ABOUT THE COMPANY ................................................................. 42 16. STOCK MARKET DATA ....................................................................................................................... 45 17. DETAILS OF THE STATUTORY APPROVALS ................................................................................ 47 18. DETAILS OF THE REGISTRAR TO THE BUYBACK AND INVESTOR SERVICE CENTRE ................................................................................................................................................... 48 19. PROCESS AND METHODOLOGY FOR THE BUYBACK............................................................... 49 20. PROCEDURE FOR TENDER OFFER AND SETTLEMENT ........................................................... 54 21. NOTE ON TAXATION ........................................................................................................................... 60 22. DECLARATION BY THE BOARD OF DIRECTORS ........................................................................ 63 23. AUDITORS CERTIFICATE .................................................................................................................. 64 24. DOCUMENTS FOR INSPECTION ....................................................................................................... 68 25. DETAILS OF THE COMPLIANCE OFFICER ................................................................................... 68 26. DETAILS OF THE REMEDIES AVAILABLE TO THE EQUITY SHAREHOLDERS/ BENEFICIAL OWNERS ........................................................................................................................ 69 27. DETAILS OF THE MANAGER TO THE BUYBACK