Shares of Aster DM Healthcare rose by 3.11% to ₹515.50 on Monday, December 2, after the announcement of a merger with Blackstone-backed Quality Care India Ltd (QCIL), which operates CARE Hospitals. The merger positions the combined entity among the top three hospital chains in India in terms of revenue and bed capacity.

Merger Highlights

  • Merged Entity Name: The new entity will be called Aster DM Quality Care Ltd.
  • Hospital Network: The merged group will operate 38 hospitals with over 10,150 beds across 27 cities in South and Central India.
  • Ownership Structure:
    • Aster promoters will hold 24% of the merged entity, while Blackstone will own 30.7%.
    • Aster shareholders will retain 57.3% ownership, with QCIL shareholders holding the remaining 42.7%.

Deal Contours

  • Stake Acquisition: Aster will acquire a 5% stake in QCIL from Blackstone and TPG through a primary share issuance for a 3.6% stake in Aster.
  • Merger Timeline: The transaction is expected to close by Q3 FY2025-26, subject to regulatory, shareholder, and corporate approvals.
  • Leadership:
    • Dr. Azad Moopen, Founder and Chairman of Aster DM, will continue as Executive Chairman of the merged entity for three years and six months, before transitioning to Non-Executive Chairman.
    • QCIL Group MD Varun Khanna will serve as the MD and Group CEO.

Strategic Implications

  • The merger will create a world-class healthcare platform with a strong regional presence and operational scale.
  • It highlights Aster DM’s growth trajectory and expansion ambitions within India’s rapidly growing healthcare sector.
  • Blackstone’s involvement reinforces the financial and strategic strength of the new entity.

Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.

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