The new entity will have a network of 38 hospitals and over 10,150 beds in India. Aster DM Healthcare Limited and Blackstone-backed Quality Care have signed agreements to merge, creating a new listed entity,

Aster DM is expected to post a revenue of Rs 340-350 crore on an annualised basis in FY25, with an Earning Per Share of Rs 6.8 per share.

Aster DM Quality Care Limited is set to merge with four prominent healthcare brands, including Aster DM, CARE Hospitals, KIMSHEALTH, and Evercare. The combined entity will emerge as one of the top three hospital chains in the country.

Aster DM Healthcare and Blackstone and TPG-backed Quality Care have decided to merge to create one of India's top three hospital chains.

HSBC Global Research kept a 'Buy' rating on the stock with a target price Rs 550. PL Capital maintained a 'Buy' rating on Aster DM Healthcare Ltd. and raised the target price to Rs 620 from Rs 500.

CNBC-TV18 had reported on August 4 this year about the discussions between the two companies, aimed at expanding Aster DM’s hospital network.

In the merged entity, Aster promoters and Blackstone will hold 24% and 30.7% stakes, respectively, while the balance 45.3% will be owned by other shareholders.

Aster DM Healthcares shares experienced a significant surge, climbing up to 5% intraday, following the announcement of a definitive agreement to merge with Blackstone-backed Quality Care India Limited

Based on the swap ratio recommended in the valuation report, the Aster promoters will hold 24 per cent and Blackstone 30.7 per cent in the merged entity