The merger between Aster DM Healthcare and Blackstone-backed Quality Care India Limited (QCIL) is expected to reduce HR and procurement costs for the combined entity while eliminating resource duplication.
Anoop Moopen, the company’s director, stated that the merger would be completed within eight months.
“The merger is in the process of integration, and we expect to close it out in eight months to a year,” said Moopen. “It will take us to the top league, increasing our overall capacity to over 10,000 beds once completed.”
Aster DM Healthcare and QCIL merged in November through a share-swap deal, with 977 Aster shares allotted for every 1,000 QCIL shares.
Aster DM Healthcare shareholders are expected to own 57.3% of the merged entity, which will operate over 10,000 beds across 38 hospitals.
“We are focusing on optimising existing assets and ensuring synergies in procurement and talent,” Moopen added. “Once the merger is complete, we aim to eliminate resource duplication and reduce HR and procurement costs.”
Observers and analysts note that once the merged entity is listed, it will rank among the top three healthcare providers in India, or as Moopen put it, “in the big league.”
The merger will also strengthen Aster’s presence in Kerala, where the company is developing three hospital projects in Thiruvananthapuram, Kasaragod, and Kochi.
“Our 450-bed Thiruvananthapuram hospital will be commissioned within a year, while the 250-bed facility in Kasaragod will open in less than six months,” Moopen said. “We are also exploring other locations within Kerala to expand our presence.”
Aster’s market position in Kerala is set to grow further as KIMS Healthcare, which is part of the merged entity, will play a significant role in driving regional revenue.
Currently, Kerala contributes 55% to 60% of Aster’s total revenue, and this share is expected to rise post-merger.
The company is also considering expansion into cities like Bhubaneswar, Aurangabad, and Kolhapur.
“Our primary focus will remain on South India, as there is ample opportunity for growth in Tamil Nadu, Kerala, and Karnataka,” Moopen stated. “We have achieved a 25% CAGR and 30% EBITDA growth over the last five years, and the expanding insurance and healthcare market remains a strong tailwind for us.” CNBCTV18