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

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

Shares of smallcap pharma company Aster DM Healthcare rose up to 5 per cent in Monday's session (December 2). After hitting the day's high price of Rs 524.5 per share, shares of the company at the time of writing the copy were up 2.

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.

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.

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