Aster DM Healthcare has announced a definitive merger agreement with Quality Care India (QCIL) to form Aster DM Quality Care.
Approved by the respective companies’ board of directors, the merger is subject to regulatory, corporate, and shareholders' approvals.
The combined entity will have a portfolio of brands, including Aster DM, CARE Hospitals, KIMSHEALTH, and Evercare, as well as a network of 38 hospitals and over 10,150 beds spread across 27 cities.
Prior to the merger, Aster will acquire a 5% stake in QCIL from Blackstone and TPG through a primary share issuance, which will result in a 3.6% stake for the investors in Aster.
The transaction is expected to conclude by the third quarter of the 2026 financial year.
After the acquisition of the initial share, QCIL will be merged into Aster through a scheme of amalgamation.
The initial share acquisition ratio will mirror the proposed merger terms.
Upon completion, Aster Promoters and Blackstone will have equal representation on the board and will oversee the merged entity collectively.
Aster DM Healthcare deputy managing director Alisha Moopen said: “The accelerated growth of Aster over the last ten years in India showcases our deep clinical leadership and our ability to respond and cater to the market demand ahead of the curve.
“Through this merger with Quality Care, backed by Blackstone and TPG, we are creating a powerful force that will elevate healthcare standards through this strategic partnership.”
Aster DM Healthcare founder and chairman Dr Azad Moopen will retain his role as the executive chairman while Varun Khanna and Sunil Kumar will ascend to the positions of MD and group CEO and group chief financial officer of the merged company, respectively.
Moelis & Company and Advay Capital served as the financial advisers to Aster while Kotak Investment Banking acted as the corporate adviser, with Cyril Amarchand Mangaldas providing legal counsel.
QCIL received financial advice from NovaaOne Capital while Trilegal and JSA offered legal counsel.
PwC acted as an independent registered valuer for the swap ratio, and ICICI Securities delivered the fairness opinion on the same.
