Business

Aster DM Healthcare Acquires 5% Stake in Quality Care India Ahead of Strategic Merger

As part of the transaction, Aster acquired 1,90,46,028 equity shares of QCIL from Blackstone Capital Partners (BCP) and Centella Mauritius Holdings, an entity backed by global private equity firm TPG. In exchange, Aster allotted 1,86,07,969 equity shares of ?10 each to BCP and Centella.

• By Newsdesk
• Bengaluru
• May 01, 2025

Business

In a significant move ahead of their proposed merger, Aster DM Healthcare has acquired a 5% equity stake in Hyderabad-based Quality Care India Ltd (QCIL) for ₹849.13 crore through a share swap deal.

As part of the transaction, Aster acquired 1,90,46,028 equity shares of QCIL from Blackstone Capital Partners (BCP) and Centella Mauritius Holdings, an entity backed by global private equity firm TPG. In exchange, Aster allotted 1,86,07,969 equity shares of ₹10 each to BCP and Centella.

Dr. Azad Moopen, Founder Chairman of Aster DM Healthcare, called the acquisition “the first step toward the strategic merger between Aster and QCIL,” adding that the focus is on delivering long-term value for stakeholders as the two entities move toward full integration.

The deal marks a key milestone ahead of the much-anticipated merger, announced in November 2024, between Aster—led by its founding promoters—and QCIL, which is backed by global investment giant Blackstone.

Earlier this month, the proposed merger received the green light from the Competition Commission of India (CCI), paving the way for finalization later this year. Post-merger, Aster’s promoters will hold a 24% stake in the combined entity, while Blackstone will own 30.7%.

Leadership roles in the merged organization have already been outlined. Dr. Moopen will continue as Executive Chairman, while Varun Khanna, currently Group MD of QCIL, will take over as MD and Group CEO of the new entity.

Once completed, the merger will create India’s third-largest private hospital chain, boasting 38 hospitals and a combined bed capacity of 10,500 across 27 states. As per the agreed shareholding structure, Aster shareholders will own 57.3% and QCIL shareholders 42.7% of the merged entity.