Indian hospital operators Aster DM Healthcare, Quality Care to merge

The merged, publicly listed entity will be called Aster DM Quality Care Ltd. The Azad Moopen family – instrumental in managing Aster’s India and GCC businesses – will lead the new merged entity. Dr. Azad Moopen will continue as Executive Chairman, while Varun Khanna, Group Managing Director of Quality Care, will be the MD and Group CEO of the merged entity.

Aster expects the merger transaction to close by Q3 of FY-2026.

The aim of the merger is ‘create one of the Top 3 hospital chains in India’ in terms of revenue and number of beds – 38 hospitals and 10,150+ beds – with a strong presence across south and central India.

Based on the agreed share swap ratio, Aster shareholders will hold 57.3% and Quality Care shareholders will have 42.7% in the merged entity. 

Market analysts tracking Indian healthcare sector say there is limited overlap between Aster DM and Quality Care’s India operations, which bodes well for the merger.

Aster DM Healthcare’s UAE and Gulf operations was engaged in a sizeable deal with Fajr Capital earlier this year, whereby the latter bought 65% in it. The deal was part of Aster DM’s plans to entrench itself further in the India healthcare market, where it has major hospitals in south India.

Quality Care’s investors include global fund managers  Blackstone and TPG.

“The integration of Aster and Quality Care’s extensive network and deep operational expertise will enhance our ability to deliver world-class healthcare services, drive innovation, and improve patient outcomes,” said Dr. Azad Moopen, founder and Chairman of Aster DM Healthcare.

“This merger demonstrates our aligned cultures and value systems, and furthers our commitment to address bed shortage in India’s underserved regions,” said Varun Khanna of Quality Care.

Post the merger, the entity will target opportunities for both brownfield and greenfield expansion, of around 3,500 new beds between FY-2024-27.

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