Aster DM-Quality Care: Dr Azad Moopen To Be Executive Chairman Of Top 3 Ranker Hospital Chain
Aster DM Healthcare has announced a merger with Blackstone-backed Quality Care India Limited (QCIL), creating one of India’s top three hospital chains. The combined entity, named Aster DM Quality Care Limited, is valued at ₹43,000 crore ($5.08 billion) and will oversee a network of 38 hospitals and over 10,150 beds across 27 cities. The merger, finalised on 29 November, marks the largest consolidation in India’s healthcare sector and aims to transform accessibility and innovation in healthcare delivery across the country. In August, Timeline had reported about the possible merger.
The merger has been structured through a share-swap ratio of 977 shares of Aster for every 1,000 shares of QCIL. This arrangement will result in Aster shareholders holding a 57.3% stake in the new entity, while QCIL shareholders will hold 42.7%. The leadership will see Dr Azad Moopen, Executive Chairman of Aster DM Healthcare, continuing in his role, while Varun Khanna, Group Managing Director of QCIL, will take over as the Group CEO of the merged organisation.
Dr Azad Moopen expressed his vision for the new entity, saying, “The new combined entity ‘Aster DM Quality Care Ltd.’ is poised to become one of the largest healthcare players in the industry, setting new benchmarks in patient-centric care, innovation, and accessibility. By combining the strengths of two pioneers, we are not only expanding our footprint but also creating a transformative force capable of reshaping the healthcare landscape. The integration of Aster and Quality Care’s extensive network and deep operational expertise with backing from Blackstone and TPG – among the most respected private equity firms – will enhance our ability to deliver world-class healthcare services, drive innovation, and improve patient outcomes. The merger will also provide our medical professionals with an opportunity to cater to higher and diverse patient inflows.”
The merger will bring together four renowned healthcare brands under one umbrella—Aster DM, CARE Hospitals, KIMSHEALTH, and Evercare. This expanded network aims to serve both metropolitan cities and underserved Tier 2 and Tier 3 regions. The organisation also plans to add 3,500 beds to its portfolio by FY2027, funded through internal accruals, further cementing its position as a leader in healthcare services in India.
Founded in 1987, Aster DM Healthcare began as a single clinic in Dubai and has grown into a multinational healthcare provider with a strong presence in India and the Gulf region. Quality Care India Limited, established in 1997, operates through its CARE Hospitals network, which includes 26 healthcare centres and over 5,150 beds across 14 cities. The merger comes at a time when India’s healthcare infrastructure faces challenges, particularly in rural and semi-urban regions, and aims to bridge these gaps by expanding its reach and offering high-quality care.
Amit Dixit, Head of Asia for Blackstone Private Equity, underscored the significance of the merger, stating, “We are committed to creating one of India’s leading platforms in the healthcare sector. It is in our DNA to be a builder of businesses – using our scale, operational expertise, and global life sciences insights, we will help grow the platform, expand its footprint, and develop it into a world-class healthcare institution. We are excited to partner with the Moopen family, which shares our values and strong governance standards. We believe Varun Khanna is a terrific leader and can help build the combined entity.”
The financial and legal aspects of the deal were supported by Moelis & Company and Advay Capital as financial advisors, with Kotak Investment Banking as corporate advisor and Cyril Amarchand Mangaldas as legal counsel to Aster. NovaaOne Capital served as the financial advisor to Blackstone and TPG, with Trilegal and JSA acting as legal counsel. PwC, as the independent valuer, recommended the swap ratio, while ICICI Securities provided the fairness opinion.
The merger is expected to be completed by Q3 FY26, following regulatory and shareholder approvals. Once finalised, Aster DM Quality Care Limited will not only consolidate its leadership position in India’s healthcare sector but also set new benchmarks in innovation and patient-centric services. The combined expertise of Aster and QCIL, backed by global investment firms like Blackstone and TPG, promises to redefine the healthcare landscape in India.
