Healthcare stock jumps after receiving approval from the CCI to merge with Quality Care India

This company announced that it has received approval from the Competition Commission of India (CCI) for this key acquisition. In this article, we will try to understand the process and other information about this acquisition.

Price Movement

With a market capitalization of Rs 25,013 crore, the shares of Aster DM Healthcare Ltd are currently trading at Rs 500 per share, down by 6% from its 52-week high price of Rs. 536.50. The stock has given a positive return of 16.38 percent over the last six months. 

About the announcement

On Wednesday, the company announced it had received approval from the Competition Commission of India (CCI) for the proposed merger of Aster DM Healthcare and Quality Care India Ltd (QCIL), and the company will be collectively known as Aster DM Quality Care Ltd.

Before the merger, Aster DM Healthcare Ltd will acquire a 5 percent stake in Quality Care India Limited (QCIL) from BCP Asia II TopCo IV Pte Ltd (BCP Asia) and Centella Mauritius Holdings Limited (Centella) in consideration of a primary share issuance by Aster. 

It also mentioned that the existing shareholders, including BCP Asia, Mauritius Holdings and certain minority stakeholders, will hold a certain stake in the merged entity. However, Mauritius Holdings will have a less than 10% stake without control rights in Aster DM Quality Care.

Financial Highlights

The company reported a consolidated revenue of Rs 1,050 crore in Q3 FY25, up by 10 percent, from its Q3 FY24 revenue of Rs 955 crore. It posted a net profit of Rs 64 crore in Q3 FY25, down by 69 percent, from its Q3 FY24 net profit of Rs 209 crores, and down by 40 percent from its Q2 FY25 net profit of Rs 106 crores. 

About the Company

Aster DM Healthcare Limited and its subsidiaries offer healthcare and allied services in India, the Middle East, and Mauritius. It has operations in hospitals, clinics, retail pharmacies and online pharmacies, and optical stores. In addition, the company provides in-house pharmacy services, healthcare consultancy, and other allied services.

Written by Satyajeet Mukherjee

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