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 2.46 per cent or Rs 12.3 at Rs 512.25 per share.

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The stock has been in an uptrend for seven straight sessions and spurted as much as 23 per cent considering day's high price of Rs 524.5 apiece on the BSE.

The gains in the scrip are fuelled after the company announced its merger with Hyderabad-based Quality CARE India. Post the merger, the company will emerge in the list of top 3 healthcare chains companies in India.

The merged entity will become the largest healthcare chain after Apollo and Manipal Hospital. Furthermore, in the merged company, Aster DM's promoters will have 24 per cent stake, while 30.7 per cent will be owned by Blackstone. 

Upon the merger, the company plans to have a bedding capacity of 10,150 beds across 38 hospitals in 27 ciities.

As part of the merger exerise, for every 1000 shares in Quality Care, Aster DM's 977 shares will be issued to the shareholders.

Outlook for Quality CARE

The research inputs anticipates an healthy demand going forward for the company in 2025. In the next 3-5 years, the company plans to add 16,000 beds in 7 hospitals.