Sat Nov 30 20:24:13 UTC 2024: ## Aster DM Healthcare to Merge with Care Hospitals, Creating India’s Top 3 Healthcare Provider
**MUMBAI, INDIA –** Aster DM Healthcare Limited announced its merger with Care Hospitals, a Blackstone-backed healthcare chain, creating “Aster DM Quality Care.” The combined entity will boast 38 hospitals, 10,166 beds, and a presence across 27 cities, making it one of India’s top three healthcare providers.
The merger involves Aster DM Healthcare acquiring 19 million equity shares of Quality Care India Limited (QCIL) from Blackstone at ₹445.8 per share and issuing 18.6 million of its own shares to QCIL shareholders at ₹456.33 per share. The deal is expected to close by the third quarter of fiscal year 2025-26.
The valuation multiples for the merger were reported at 36.6 for Aster DM and 25.2 for QCIL based on FY24 figures. Post-merger, Aster promoters will hold approximately 24% and Blackstone 30.7% of the combined entity, with the remaining 45.3% held by public and other shareholders.
Prior to the merger, Aster DM will acquire a 5% stake in QCIL from Blackstone and TPG, issuing 3.6% of its shares in return. The news follows other business headlines including significant returns on Adani Group stocks, an EPFO decision to allocate 50% of ETF earnings to equities, upcoming rule changes, increased retail space demand in major cities, and a busy week ahead for SME IPOs.
First Piper 