Aster DM Healthcare to acquire full ownership of Prerana Hospital Limited

Aster DM Healthcare Limited, one of India’s largest integrated healthcare providers, has announced its decision to acquire the remaining 13% stake in Prerana Hospital Limited, operating as Aster Aadhar Hospital in Kolhapur, Maharashtra. This transaction will elevate Aster DM Healthcare’s ownership of the hospital from 87% to a full 100%, solidifying its control and marking a strategic move in its growth trajectory.

The acquisition, detailed in a share purchase agreement signed on November 26, 2024, will be executed in two phases, with completion anticipated by December 31, 2025. The company disclosed that the transaction is an all-cash deal, with the valuation to be determined through an independent report in compliance with relevant regulations.

Aster Aadhar Hospital’s pivotal role in regional healthcare

Aster Aadhar Hospital is a 254-bed, multi-specialty facility and the first in the Kolhapur region to secure NABH accreditation, signifying adherence to high standards of patient care and safety. Offering over 25 specialties and supported by a team of leading healthcare professionals, the hospital has established itself as a cornerstone for advanced medical care in Maharashtra.

This acquisition aligns with Aster DM Healthcare’s strategy to strengthen its presence in India, leveraging the hospital’s reputation and the parent company’s robust infrastructure. The move is expected to cater to the rising demand for quality healthcare services in the region.

Financial and operational impact on Aster DM Healthcare

Aster DM Healthcare projects significant growth for its India operations, targeting a compound annual growth rate (CAGR) of 18% to 20% in revenue over the next five years (FY2025–FY2029). Additionally, the company expects its operating EBITDA margin to climb to 23%-25%, driven by enhanced capacity utilization and strategic expansions.

The integration of Aster Aadhar Hospital into Aster DM Healthcare’s portfolio underscores its commitment to delivering comprehensive healthcare solutions across India. The company currently operates 19 hospitals with nearly 5,000 beds, alongside a network of clinics, pharmacies, and laboratories, spanning five states.

Strategic vision and market positioning

This acquisition enhances Aster DM Healthcare’s ability to consolidate its market share and capture emerging opportunities in India’s healthcare sector. The company is well-positioned to address the increasing demand for accessible, high-quality healthcare, backed by its extensive resources and market expertise.

The deal, which does not involve any related-party transactions, highlights Aster DM Healthcare’s emphasis on strategic investments to bolster its competitive advantage.

Expert insights on Aster DM Healthcare’s growth trajectory

Industry analysts view the acquisition as a milestone for Aster DM Healthcare, enabling it to streamline operations and optimize synergies with its existing facilities. By fully owning Aster Aadhar Hospital, the company can drive operational efficiencies, improve patient outcomes, and expand its service offerings.