Aster DM Healthcare said on Tuesday that it had agreed on a strategic merger with CARE Hospitals, supported by Blackstone, which will form the new entity called Aster DM Quality Care. The resultant company will become one of the top three healthcare providers in India, having a portfolio of 38 hospitals in 27 cities. The merged enterprise will have an enterprise value of ₹43,000 crore, or about $5 billion, and is set to generate projected revenues of ₹7,314 crore.
Aster DM Healthcare said on Friday that it will acquire 19 million equity shares of Quality Care India Ltd. from Blackstone and Centella at ₹445.8 per share. As part of the deal, Aster will grant the shareholder base of QCIL equity of 18.6 million shares at an amount of ₹456.33 per share. Completion is expected to be done in the third quarter of the 2025-26 fiscal year.
The entity will be valued at 36.6 times the FY24 metrics, and QCIL will be valued at 25.2 times.
After closing the deal, the promoters of Aster will hold 24% of the merged company’s stake, and Blackstone will hold a 30.7% stake in the same company.
The balance of 45.3% will be issued to public and other shareholders. Before the merger, Aster will purchase a 5% interest in QCIL from Blackstone and TPG for the issue of new shares representing an initial 3.6% equity interest.
Shareholders in QCIL will receive shares in Aster DM based on an agreed swap ratio where for every 1,000 shares of QCIL, 977 shares of Aster will be issued.
The newly formed Aster DM Quality Care will expand its hospital network further and add 3,500 beds by FY27, bringing the total bed capacity to 13,300. This will combine two powerful forces in the Indian healthcare sector with players like Apollo Hospitals and Manipal Hospitals.
Azad Moopen, founder and chairman of Aster DM Healthcare, said that the new combined entity will raise standards in patient care, innovation, and accessibility.
. The Managing Director and Group CEO for the merged entity would be Varun Khanna of CARE Hospitals, while the role of Executive Chairman will still be held by Moopen.
Amit Dixit of Blackstone and Vishal Bali of TPG are both optimistic about the tie-up, saying it is a chance to create a world-class healthcare institution with strong governance and operational expertise.
