Aster DM Healthcare Acquires 5% Stake In Quality Care India For Rs 849 Crore Through Share Swap Deal

Aster DM Healthcare Ltd. on Wednesday intimated that it has acquired a 5% stake in Quality Care India Ltd. through a share swap deal for Rs 849.13 crore.

The 5% equity acquisition is part of the first step towards the strategic merger between Aster DM Healthcare and Quality Care India announced on Nov. 29, 2024, according to the company's exchange filing.

The merger is expected to be completed this year, the company said.

Aster DM Healthcare acquired 1,90,46,028 equity shares of QCIL from private equity investors BCP Asia II TopCo IV Pte. and Centella Mauritius Holdings Ltd.

As discharge of the total purchase consideration payable, Aster DM Healthcare has allotted 1,86,07,969 equity shares, with face value of Rs 10 each to BCP and Centella, the press release accompanying the filing stated.

"This move lays the foundation for a unified, future-ready healthcare network with a strengthened pan-India presence," the acquirer's Founder-Chairman Azad Moopen said.

He added, "As we progress toward full integration, our focus remains firm towards creating significant long-term value for all our stakeholders.”

The newly issued shares will have equal rights with existing equity shares of Aster, the statement said.

The merged entity—which is subject to approvals—‘Aster DM Quality Care' will be jointly controlled by Aster Promoters and BCP.

It brings together the strengths of two leading healthcare providers with a common vision of expanding access to high-quality medical care across the country, the release added.

Aster's network of 191 hospitals, 13 clinics, 232 labs and PECs, and 2,122 pharmacies is spread across 15 cities in India.

The healthcare major caters to patients with about 5,000 beds and over 2,600 doctors, its investor presentation on Nov. 29, 2024 had stated.

The acquiring company's revenue for fiscal 2024 stood at Rs 3,699 crore, while its Ebitda margin was about 17%.

Quality Care India's 19 hospitals, with over 5,150 beds, span 14 cities, and is focused on non-metro markets.

In fiscal 2024, the company had earned revenue of Rs 3,615 crore, while and Ebitda margin stood at over 21%.

Shares of Aster on Wednesday closed 1.31% lower at Rs 505 apiece on the BSE, compared to a 0.06% decline in the benchmark Sensex. The intimation regarding the acquisition was shared by the company after the stock markets had closed on Wednesday.