Aster DM Healthcare Share Price Hits Seven-Month High On Quality Care India Merger Plan

Aster DM Healthcare Pvt.'s share price rose to hit its highest in seven months, tracking Friday's news of the company's merger with Blackstone- and TPG-backed Quality Care India Ltd. through a share swap agreement.

This is the longest gaining streak the share price has recorded since its seven-session rally ended Feb. 20, 2023. It has added more than 16% in this period.

The board approved the merger plan, whereby the company will initially acquire 1.94 crore shares, or 5% equity, of the unlisted Quality Care from Blackstone affiliate BCP Asia II TopCo IV Pte. and TPG Inc. arm Centella Mauritius Holdings Ltd. at Rs 445.8 per share, according to an exchange filing.

The merger will have multiple benefits, including scale and financial resilience, diversification and potential for growth, and multiple synergies, including revenue synergies, supply chain synergies, and lower cost overheads, Aster DM said.

The acquisition will be completed within 15 days of the date of the shareholder approval or the date of the CCI approval (whichever is later), the filing said.

After the initial share acquisition, QCIL will be merged into Aster by way of a scheme of amalgamation, subject to shareholder and regulatory approvals.

Aster expects the merger transaction to close by the third quarter of fiscal 2026, as per the statement.

The company has assured investors that the merged entity will be earnings accretive, which hinges on Quality Care turning profitable in the next one year.

The scrip rose as much as 4.94%, the highest level since April 22, before paring gains to trade 2% higher at Rs 510.70 apiece, as of 9:48 a.m. This compares to a flat NSE Nifty 50.

It has risen 24.9% on a year-to-date basis. Total traded volume so far in the day stood at 2.01 times its 30-day average. The relative strength index was at 81.5, indicating that the stock may be overbought.

Of the nine analysts tracking the company, eight maintain a 'buy' rating and one recommends a 'hold', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 3.3%.