Aster DM Healthcare, founded by Dr. Azad Moopen, and Hyderabad-based Care Hospitals, supported by private equity firms Blackstone and TPG, have merged to establish India’s third-largest corporate hospital chain, Aster Quality Care.

The newly formed entity will operate 38 hospitals with a total capacity of over 10,150 beds across 27 cities. This positions Aster Quality Care just behind Apollo and Fortis in the Indian healthcare market. The merger agreement details that Aster promoters, the Moopen family, will hold a 24 percent stake, while Blackstone will control 30.7 percent. Aster shareholders will own 57.3 percent of the combined entity, and Care Hospitals’ shareholders will retain a 42.7 percent share.

The deal is expected to deliver significant benefits, including scale, diversification, improved financial metrics, and operational synergies. The merger also leverages the strengths of four leading healthcare brands: Aster DM, Care Hospitals, KIMS Health, and Evercare. Aster Quality Care's valuation highlights its market strength, with its 36.6x FY24 operating income multiple surpassing Care Hospitals’ 25.2x valuation.

Additionally, Aster will relocate its registered office from Karnataka to Telangana to support the merger. The focus is on expanding the footprint and evolving Aster Quality Care into a world-class healthcare platform.

The merger reflects a strategic alignment of resources, expertise, and market opportunities in one of the world’s fastest-growing healthcare markets.