Yatharth Hospital’s share price reached a new high following reports of potential acquisition interest from Aster DM and Advent International, sparking investor speculation amidst ongoing industry consolidation discussions.
Yatharth Hospital shares jumped to a record on Friday after market reports said Aster DM Quality Care and Advent International were exploring a controlling stake in the north India hospital chain. The stock climbed to ₹1,024.95 on the Bombay Stock Exchange, up 5.63% from the previous close of ₹970.25, before easing later in the session. Trading volume had reached 1.12 million shares by 1 pm, while the Sensex was up 0.16% at 77,053.
The move came amid a flurry of speculation around hospital-sector consolidation, with reports saying the discussions could lead to an open offer for another 26% of the company if a transaction on control proceeds. Yatharth and Blackstone have denied that any deal is in place, and other market reports said the company’s management has described the buyout talk as incorrect. Blackstone has also said it is not evaluating a sale process, underscoring that the reports remain unconfirmed.
Even so, investors have been drawn to the strategic logic of a possible tie-up. Krathi Bathini of Wealthmills Securities told Business Standard that the merger ratio would be decisive in judging whether any transaction is attractive. Bathini said Aster has been building out its footprint in southern India and may be seeking a larger presence in the north, with potential benefits from scale, doctor exchanges and a deeper clinical bench.
Yatharth operates as a private multi-speciality hospital chain in northern India and has a capacity of more than 2,800 beds, including a 250-bed facility in Gurugram that is still under construction, according to its latest investor presentation. The company said occupancy stood at 68% and average revenue per occupied bed was ₹34,758. For the quarter ended June, revenue rose 51% year on year to ₹392.7 crore, profit after tax increased 8% to ₹45.4 crore and Ebitda climbed 39% to ₹91.7 crore. ICICI Direct said the company is targeting more than 5,000 beds over the next three years, although it also described the current takeover talk as speculative.
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