Aster DM Healthcare shares rise on CCI's nod to merger with Quality Care India

Shares of Aster DM Healthcare rose nearly 3% in the afternoon session on Wednesday after the Competition Commission of India (CCI) approved a proposed merger between the healthcare firm and Quality Care India. Aster DM Healthcare shares gained 2.78% to Rs 503.15 against the previous close of Rs 489.50 on BSE. Market cap of the firm stood at Rs 24,933 crore. A total of 0.42 lakh shares of the healthcare firm changed hands amounting to a turnover of Rs 2.09 crore on BSE.

The stock has a beta of 0.6, indicating very low volatility in a year. 

In terms of technicals, Aster DM Healthcare stock is trading higher than all short term and long term averages.

The transaction includes private equity investors BCP Asia II TopCo IV Pte. and Centella Mauritius Holdings Ltd, both of whom already have ownership or stake in Quality Care India. According to CCI's  press release, the proposed deal involves merging Quality Care India into Aster DM Healthcare through a scheme of amalgamation. Following this merger, Aster will be rebranded as Aster DM Quality Care Ltd. Prior to the merger, Aster plans to acquire a 5% stake in Quality Care from BCP Asia II TopCo IV and Centella Mauritius Holdings.

A statement has been made regarding a primary share issuance by Aster. As per the outlined plan, existing shareholders of Quality Care India—including Centella, BCP, and certain minority stakeholders—are set to maintain a specific ownership interest in the newly merged entity. Notably, Centella will own less than 10% of the shares and will not possess any control rights.

Aster DM Healthcare is primarily involved in the operations of healthcare facilities, retail pharmacies, and providing consultancy in areas relating to healthcare.