Aster DM Eyes Pan-India Growth After QCIL Merger

Aster DM announced its merger with QCIL in November 2024, in a deal that values the combined entity at $5.08 billion (INR 43,000 Cr). The merger is expected to close within six months.

Aster DM Healthcare is eyeing nationwide growth following its merger with Blackstone-backed Quality Care India (QCIL), which marked a pivotal moment for the hospital chain, according to deputy managing director Alisha Moopen in an interview with Mint.

The Bengaluru-headquartered group is looking to widen its presence across India with the aim of becoming a leading pan-India healthcare provider within the next decade, Moopen said.

While the company is open to new acquisitions, it remains cautious in its approach.

“It has to make business sense…transactions are hard to execute because Indian markets have become so hot,” Moopen noted.

“But if there’s a great asset at the right price…of course, we'll look at it,” she added.

Aster DM’s M&A Plans

Reports suggest the merged entity, Aster DM Quality Care, jointly controlled by Aster’s promoters and Blackstone, is among the bidders for Canada-based Ontario Teachers Pension Plan’s (OTPP) Sahyadri Hospitals.

Other reported bidders include Manipal Hospitals, Swedish investment firm EQT, and Malaysia-based IHH Healthcare.

While Moopen did not comment on the Sahyadri bid, she highlighted that any acquisition would be evaluated based on its brand, reputation, trust, and valuation. “…for us, we are all about sustainable growth,” she said.

Aster DM announced its merger with QCIL in November 2024, in a deal that values the combined entity at $5.08 billion (INR 43,000 Cr). The merger is expected to close within six months.

The deal is expected to position the merged group among India’s top three hospital chains by bed count, increasing its capacity to 10,301 beds, nearly doubling Aster DM’s existing 5,159 beds.

The merger also gives Aster access to new regions beyond its current strongholds of Kerala and Karnataka, including Madhya Pradesh, Odisha, Chhattisgarh, and Tamil Nadu.

Stay tuned for more such updates on Digital Health News