Aster DM Healthcare merger advances as NCLT clears the way for shareholders’ meeting

The proposed merger between Aster DM Healthcare Ltd and Quality Care India Ltd (QCIL) has moved a step closer to completion after the National Company Law Tribunal (NCLT), Hyderabad Bench, directed the companies to convene meetings of shareholders and unsecured trade creditors to seek approval for the scheme.

As per the NCLT order, the meetings will be held between February 27 and March 13, 2026. The development follows earlier approvals from the Competition Commission of India (CCI) and ‘no-objection’

letters from the stock exchanges, clearing key regulatory hurdles for one of the largest consolidation deals in India’s healthcare sector.

Subject to shareholder, creditor, and remaining statutory approvals, the companies expect to complete the merger by the first quarter of FY2026–27.

Post-merger, the combined entity—proposed to be named Aster DM Quality Care Ltd—will be jointly promoted by the Aster promoters and private equity firm Blackstone. It is set to emerge as one of India’s top three hospital chains by capacity, with a nationwide footprint of over 10,360 beds.

The transaction brings together four established hospital brands—Aster DM, CARE Hospitals, KIMSHEALTH, and Evercare—creating a diversified platform spanning multiple regions and care segments. As of September 30, 2025, Aster DM Healthcare operated over 5,195 beds, while QCIL had a capacity of approximately 5,165 beds.

Commenting on the development, Aster DM Healthcare Founder and Chairman Dr. Azad Moopen said the NCLT order marks meaningful progress in the merger process and expressed confidence in receiving shareholder and creditor approvals. He added that the focus post-merger would be on disciplined integration, leveraging complementary clinical expertise, operational efficiencies, and network synergies across the two hospital platforms.

Beyond scale, the merged entity has outlined expansion plans to increase its bed capacity to around 14,715 beds over the coming years. The larger balance sheet and operational footprint are also expected to support investments in advanced medical technologies, digital health platforms, and innovation-led care delivery models.

The merger comes at a time when India’s hospital sector is witnessing accelerated consolidation, driven by rising healthcare demand, higher capital requirements, and the need for operational efficiencies. Analysts say larger hospital networks are better positioned to optimise costs, invest in technology, attract clinical talent, and expand into underserved markets.

With most regulatory approvals already in place, the upcoming shareholder and creditor meetings represent the final major milestone before the merger becomes effective, potentially reshaping the competitive landscape of India’s hospital industry.

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