Bengaluru-based Aster DM Healthcare Ltd has received an overwhelming 96.68% approval from shareholders, along with strong backing from minority shareholders and creditors, for its proposed merger with Quality Care India Limited (QCIL).
The approval follows earlier support from shareholders for the share swap arrangement preceding the merger, reflecting broad-based investor confidence in the transaction.
The merger is expected to be completed in the next quarter, subject to the remaining regulatory and statutory approvals, including clearance from the National Company Law Tribunal (NCLT).
The combined entity, to be named Aster DM Quality Care, will be jointly promoted by Aster promoters and Blackstone. The merger brings together the strengths of two leading healthcare providers with a shared vision of expanding access to high-quality medical care across India.
The merged platform will bring together four key brands, Aster DM, Care Hospitals, Kimshealth, and Evercare, creating a large and diversified healthcare network.
Upon completion of the merger, the combined entity is expected to emerge as one of the top three hospital chains in India, with a presence across nine states and 28 cities.
The integrated network will operate 39 hospitals with more than 10,625 beds, supported by over 36,300 employees and clinicians, serving millions of patients annually through hospitals, clinics, laboratories and allied healthcare services.
Aster DM Healthcare Founder Chairman Azad Moopen said: “The strong support from our shareholders reflects their confidence in the strategic rationale of this merger and the long-term value it will deliver. By bringing together Aster DM Healthcare and Quality Care India, we are building a scaled, future-ready healthcare platform with the clinical depth, operational strength and governance framework required to serve millions of patients across the country.
“This partnership combines Aster’s legacy of patient-centric care and physician leadership with the institutional strength and growth expertise of Blackstone. Together, we are well positioned to expand access to high-quality healthcare, invest in clinical excellence and innovation, and create one of India’s leading integrated healthcare networks,” he said.
Aster DM Healthcare is among the largest healthcare service providers in India, with a presence across primary, secondary, tertiary and quaternary care. The company operates 20 hospitals with 5,451 beds, along with 10 clinics, 203 pharmacies (run by Alfaone Retail Pharmacies Pvt Ltd under brand licence from Aster), and 302 laboratories and patient experience centres across five states.
Quality Care is a privately held hospital chain backed primarily by Blackstone (72%) and TPG. Founded in 1997 by a group of cardiologists, QCIL provides tertiary healthcare services across multiple specialties and operates hospitals in Visakhapatnam, Nagpur, Aurangabad, Raipur, Indore and Bhubaneswar.
Quality Care India Group MD & CEO Varun Khanna said during earnings call that expansion remains a key strategic priority. The group plans to strengthen its presence in existing markets and enter new ones through brownfield expansions, strategic acquisitions and greenfield projects.
The company plans to invest around ₹2,000 crore to add over 1,700 beds over the next three to four years, with about 1,300 beds planned in non-metro and tier-2 and tier-3 markets.
Aster DM Healthcare CFO M.R. Sunil Kumar said the company will also commission two greenfield projects next year in Thiruvananthapuram and Hyderabad, including a women and children’s hospital in Hyderabad. These projects are expected to become operational in the first and second half of next year respectively.