Aster DM Healthcare Limited — Updates, 29-11-2024: Press Release

Aster DM Healthcare and Quality Care India Limited have signed definitive agreements for a merger, pending necessary regulatory and shareholder approvals. The combined entity, Aster DM Quality Care Limited, aims to become one of India's top 3 hospital chains, boasting over 10,150 beds across 38 hospitals. This merger is poised to enhance financial metrics and operational efficiencies, with expectations of increased earnings per share.

The transaction values Aster at a multiple of 36.6x FY24 adjusted post IND AS EV/EBITDA, substantially higher than QCIL's valuation of 25.2x. Aster shareholders will hold 57.3%, while QCIL shareholders will have 42.7% in the merged entity, which will be governed jointly by Aster's promoters and Blackstone. With strong backing from prominent private equity investors like Blackstone and TPG, this merger is set to provide significant growth opportunities, including plans for the addition of approximately 3,500 new beds between FY24-27. The merger not only positions the newly created entity for robust growth but also reinforces its commitment to improving patient care across India.