Aster DM Healthcare and Quality Care India Limited (QCIL) have announced a landmark merger to create Aster DM Quality Care Limited, set to become one of India’s top three hospital chains by revenue and bed capacity. The merger, subject to regulatory and shareholder approvals, will result in a combined network of 38 hospitals with 10,150+ beds across 27 cities, enhancing India’s healthcare infrastructure significantly.
The new entity will bring together leading brands, including Aster DM, CARE Hospitals, KIMSHEALTH, and Evercare. Backed by private equity giants Blackstone and TPG, the combined organization aims to leverage its scale for operational efficiencies, synergies, and growth. The merger is also expected to drive the addition of 3,500 new beds by FY27 through greenfield and brownfield expansions.
Management Team and Shareholding Pattern
Dr. Azad Moopen, Founder and Chairman of Aster DM Healthcare, will continue as Executive Chairman, with Mr. Varun Khanna, Group MD of Quality Care, serving as MD and Group CEO of the merged entity. Aster shareholders will hold a 57.3% stake, while QCIL shareholders will own 42.7%. The combined entity will be jointly controlled by Aster promoters (24% ownership) and Blackstone (30.7%). The merger is valued at 36.6x FY24 adjusted EV/EBITDA for Aster and 25.2x for QCIL, highlighting the strategic alignment of the two organizations.
“This merger combines Aster’s legacy of leadership with Quality Care’s expertise in emerging cities, creating a transformative force in Indian healthcare,” said Dr. Moopen. Blackstone’s Amit Dixit emphasized the partnership’s potential to build a world-class healthcare institution. The transaction is expected to close by Q3 FY26, marking a new era for Indian healthcare with enhanced patient care, accessibility, and clinical innovation.