Advent, Aster Eye Controlling Stake In Yatharth Hospitals

Advent International and Blackstone-backed Aster DM Quality Care are negotiating to acquire a controlling stake in Yatharth Hospitals and Trauma Care Services, according to people with knowledge of the matter, as India's second-largest hospital chain looks to consolidate amid a wave of buyouts by large private equity groups.

Yatharth has denied being party to any sale discussions, and Blackstone has similarly denied any interest in the asset, stating it is neither evaluating a deal nor part of any sale process.

Yatharth Hospitals shares were up 4.65% at ₹1010.20 as of 10:22 am on 28 August.

Stock Reaction And Ownership Structure

Anticipation of a possible transaction has lifted Yatharth’s stock 15.3% over the past month. Shares closed at ₹973.05 on 27 August after hitting a fresh 52-week high of ₹982.65, valuing the company at ₹9,462 crore.

Promoters Ajay Kumar Tyagi and family, along with Kapil Kumar, hold a 55.8% stake, with public shareholders owning the remainder. If successful, the deal would trigger a mandatory open offer for a further 26% stake that could push the acquirer’s stake above three-fourths. Due diligence is said to be close to completion.

Why Yatharth Is Attracting Strategic Interest

Noida and Greater Noida-based Yatharth operates nine hospitals with more than 2,800 beds and plans to increase this to over 5,000 beds within three years. The group also has a presence in Jhansi-Orchha in Madhya Pradesh and Faridabad in Haryana.

For Aster DM Quality Care, formed through the merger of Aster DM Healthcare and Quality Care India and backed jointly by TPG and Blackstone, a deal would provide access to north and central India, where it currently has limited presence.

The combined entity operates four hospital brands and around 40 facilities across 27 cities. It has set a target of reaching 15,000 beds by FY29, from around 10,800 currently, and aims to become India’s largest listed hospital operator in the coming years.

Advent, meanwhile, has mainly invested in Indian pharmaceutical businesses and has made only one previous hospital investment, in Care Hospitals in 2012.

Financial Performance

Yatharth's consolidated revenue rose 51% year-on-year to ₹392.70 crore in the June quarter, with average revenue per occupied bed climbing 7% to ₹34,758.

According to broader industry data, India's hospital sector has continued to see strong investor interest, supported by rising patient volumes, improving realisations and steady capacity additions.

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