Aster DM Healthcare & Quality Care India Announce Merger

QCIL, backed by Blackstone and TPG, is one of the largest privately held hospital chains, focusing on emerging cities.

Aster DM Healthcare, a major integrated healthcare service provider in India, has signed definitive agreements to merge with Quality Care India Limited (QCIL). QCIL, backed by Blackstone and TPG, is one of the largest privately held hospital chains, focusing on emerging cities.

The merger has received approval from the Boards of Directors of both companies and is pending regulatory, corporate, and shareholder clearances. Post-transaction, the merged entity will be known as Aster DM Quality Care Limited.

The combined entity will feature a portfolio of four major brands—Aster DM, CARE Hospitals, KIMSHEALTH, and Evercare—providing a robust network of 38 hospitals and over 10,150 beds across 27 cities. This makes Aster DM Quality Care Limited one of the top three hospital networks in India.

In terms of valuation, Aster DM Healthcare is assessed at a multiple of 36.6x FY24 adjusted post IND AS EV/EBITDA, while QCIL is valued at 25.2x. Following the merger, Aster promoters will hold 24% of the shares, Blackstone will own 30.7%, and the remaining 45.3% will be held by public and other stakeholders.

Pre-Merger Developments

Before the merger is finalised, Aster will acquire a 5% stake in QCIL from Blackstone and TPG. In exchange, Aster will issue primary shares equivalent to a 3.6% stake to QCIL. Once this step is completed, QCIL will be merged into Aster via a scheme of amalgamation.

The merger process, subject to regulatory and shareholder approvals, is expected to conclude by Q3 FY26. Aster officials confirmed that “the initial share acquisition ratio aligns with the proposed merger ratio.”