Hospital chains Aster DM Healthcare Limited and Quality Care India Limited, backed by Blackstone and TPG, have announced their merger to create Aster DM Quality Care Ltd, a leading network of 38 hospitals across India.

Post-merger, Aster DM shareholders, including promoters, will hold a 57.3% stake, while Quality Care shareholders will own 42.7% in the new entity.

Notably, Aster promoters will have a 24% stake, and Blackstone will own 30.7%, with the remaining 45.3% held by the public and other shareholders, based on the agreed swap ratio.

Dr Azad Moopen, Founder of Aster DM, will serve as the Executive Chairman of the merged entity, while Varun Khanna, Group Managing Director of Quality Care, will assume the role of MD and Group CEO.

“With Aster DM Quality Care Ltd, we aim to redefine healthcare benchmarks through innovation, accessibility, and patient-centric care,” said Dr Moopen. “This merger also provides our medical professionals broader exposure and enhances our operational scale.”

The merged entity will operate over 10,150 beds across 27 cities, ranking it among India’s top three hospital chains. Additionally, it plans to expand its capacity by 3,500 beds between FY24 and FY27, leveraging brownfield and greenfield opportunities.

The merger combines key brands—Aster DM, CARE Hospitals, KIMSHEALTH, and Evercare—under one umbrella, enabling wider patient outreach. Financially, it is expected to boost earnings per share and deliver substantial revenue growth.

Valued at 36.6x FY24 adjusted post INDAS EV/EBITDA, the transaction marks a premium of 45% over Quality Care’s valuation of 25.2x FY24 adjusted post INDAS EV/EBITDA.

This strategic consolidation positions Aster DM Quality Care Ltd as a transformative player in India’s healthcare landscape, offering superior patient services and driving sectoral innovation.