Aster DM Healthcare (ASTERDM) Investor Presentation summary

Merger overview and strategic rationale

• Aster DM and Blackstone-backed Quality Care India Limited (QCIL) are merging to form one of the top 3 hospital chains in India, with over 10,150 beds across 9 states and 25 cities.

• The merged entity will have a diversified presence, strong financial and operational metrics, and significant growth potential through brownfield and greenfield expansion.

• The merger is expected to generate revenue synergies, supply chain efficiencies, and lower overheads, with a near-term EBITDA upside potential of 10-15%.

• Blackstone, a global alternative asset manager, will back the merged entity, enhancing governance and growth prospects.

Business and financial snapshot

• Combined FY24 revenue is INR 7,314 Cr, with an adjusted post-IndAS EBITDA of INR 1,396 Cr and ROCE of 18%.

• The merged entity will have over 5,100 doctors and approximately 26,200 employees.

• Bed capacity will exceed 10,150 with an average occupancy of 65% and ARPOB of ~INR 39,100.

• The merger creates a robust platform with a quartet of brands: Aster DM, CARE Hospitals, KIMSHEALTH, and Evercare.

Transaction structure and governance

• The merger is cash neutral and expected to be EPS accretive from the first full year of operations.

• Post-merger, Aster DM and QCIL shareholders will hold 57.3% and 42.7% respectively in the new entity.

• Board representation will be equally split between Aster promoters and Blackstone, with 50% independent directors.

• Dr. Azad Moopen will remain Executive Chairman, with Varun Khanna as MD & Group CEO and Sunil Kumar as Group CFO.

• Transaction closure is expected by Q3 FY26, subject to regulatory and shareholder approvals.