Apollo Hospitals Enterprise Limited (AHEL) announced on Monday that its board has granted in-principle approval for a strategic restructuring. The move will involve spinning off and separately listing its digital health and pharmacy business units.
New Entity to Consolidate Digital and Pharmacy Operations
As the first step, AHEL will carve out its omnichannel pharmacy and digital health business into a new, yet-to-be-named entity. Following this, AHEL will merge Apollo HealthCo (AHL)—its omnichannel healthcare division—and Keimed Private Ltd, a wholesale pharmaceutical distributor, into the new entity.
The resulting structure will combine the digital health platform Apollo 24/7, AHL’s offline pharmacy network, Keimed’s third-party pharma distribution, and AHEL’s telehealth services into a single, integrated company.
Share Swap and Listing Timeline
Under the proposed structure, AHEL shareholders will receive 195.2 shares of the new company for every 100 shares they currently hold. AHEL will retain a 15% stake in the new entity and will nominate one board member. The company plans to list the newly formed entity on the stock exchange within 18–21 months, pending shareholder and regulatory approvals.
Acquisition of Apollo Medicals to Strengthen Front-End Presence
Additionally, the new entity plans to acquire a 74.5% stake in Apollo Medicals Pvt. Ltd. (AMPL), which owns 100% of Apollo Pharmacies Limited. This acquisition will allow the company to consolidate its front-end pharmacy operations under a single umbrella.
Financial Projections and Growth Ambitions
AHEL stated that the restructured business is projected to generate ₹16,300 crore ($1.9 billion) in revenue in FY25. Looking ahead, the new company aims to achieve a revenue run rate of ₹25,000 crore ($3 billion) by FY27, leveraging operational synergies and a broad market reach.
Leadership Speaks on Vision and Strategy
Prathap C Reddy, Chairman of Apollo Hospitals Group, emphasized the transformative potential of this move. “What Apollo Hospitals did to establish private healthcare in India, this new entity will do for the digitally driven generation of tomorrow,” he said.
Suneeta Reddy, Managing Director of AHEL, added that AHEL will remain focused on core healthcare delivery. The new entity will intensify efforts to deepen customer engagement. It will also expand its reach through targeted capital deployment and strategic leadership.
As reported by The Hindu Businessline, Shobana Kamineni is currently the Executive Chairperson of Apollo HealthCo. She will continue to serve as Chairperson of the new company. Other promoters will also hold directorships in the newly formed entity.
Advisory Support
Veda Corporate Advisors acted as the exclusive financial advisor for this transaction.