Aster DM Healthcare and Care Hospitals Merge to Form India’s Third-Largest Hospital Chain
The combined entity, Aster Quality Care, will operate 38 hospitals with over 10,150 beds across 27 cities, ranking just behind Apollo and Fortis.
In a landmark deal reshaping India’s healthcare landscape, Aster DM Healthcare, headquartered in Dubai and Kochi, has announced a merger with Hyderabad-based Quality Care India (Care Hospitals). The merger will create Aster Quality Care, India’s third-largest corporate hospital chain, following Apollo Hospitals and Fortis Healthcare.
The newly formed entity will boast an impressive network of 38 hospitals with a total capacity of over 10,150 beds, spread across 27 cities in India. This consolidation signifies a strategic push to scale operations, diversify services, and enhance financial performance within the competitive healthcare market.
Ownership of the merged organization will be split, with the Moopen family (promoters of Aster) holding 24% and private equity giant Blackstone controlling 30.7%. Aster’s founder, Dr. Azad Moopen, will remain the Executive Chairman of Aster Quality Care, while Varun Khanna, currently the Group Managing Director of Care Hospitals, will assume the roles of Group Managing Director and Chief Executive.
As part of the merger, Aster will acquire 1.9 crore shares of Care Hospitals at Rs. 445.8 per share, in exchange for 1.86 crore shares issued at Rs. 456.33 per share. This arrangement results in Aster shareholders owning 57.3% of the new entity and Care shareholders holding the remaining 42.7%.
The combined valuation of the deal reflects Aster at 36.6 times its FY24 operating income, a premium compared to Care’s 25.2 times FY24 operating income. Additionally, Aster will relocate its registered office from Karnataka to Telangana to streamline operations post-merger.
This merger is expected to unlock significant synergies, operational scale, and growth potential, backed by the financial strength and expertise of marquee private equity investors.
