Apollo Hospitals in Talks to Sell Maternity Arm ACCHL for INR 1,200 Cr

If concluded, the deal would mark one of the significant transactions in India’s hospital space this year, following a series of strategic exits and consolidations by healthcare groups looking to deleverage and focus on high-margin verticals.

Apollo Hospitals Enterprises, India’s largest private hospital chain, is reportedly exploring the sale of its maternity and infant care division, Apollo Cradle and Children’s Hospital Ltd (ACCHL), in a deal that could be valued between INR 1,000 Cr and INR 1,200 Cr.

According to multiple people familiar with the matter, the company has engaged Allegro Capital, a Bengaluru-based investment bank, to manage the sale process and identify potential buyers for the asset.

The transaction has already been initiated, with several leading private equity firms approached as prospective suitors.

The move aligns with Apollo’s broader strategy to optimize its portfolio and strengthen its core hospital business while unlocking value from non-core assets. The company, however, has not issued an official statement on the development. Moneycontrol could not independently verify the report.

ACCHL, a wholly owned subsidiary of Apollo Specialty Hospitals, currently operates 13 maternity and child care hospitals across key urban centers including Delhi, Bengaluru, Chennai, Hyderabad, Amritsar, Gurugram, Noida, and Ghaziabad. The chain has a combined bed capacity of 363, catering to premium maternity, neonatal, and pediatric care.

The proposed sale comes at a time when India’s healthcare sector is witnessing heightened investor interest, particularly in specialized and asset-light healthcare delivery formats.

Moreover, private equity investors have actively sought opportunities in maternity, diagnostics, and single-specialty chains amid rising demand and robust unit economics.

If concluded, the deal would mark one of the significant transactions in India’s hospital space this year, following a series of strategic exits and consolidations by healthcare groups looking to deleverage and focus on high-margin verticals.

Apollo Hospitals Enterprises Ltd (NSE: APOLLOHOSP) continues to be a dominant player in India’s private healthcare sector, with a network of over 70 hospitals and a growing diagnostics and pharmacy business.

Last week, Apollo Hospitals announced its Q4FY25 results, reporting a 53.5% year-on-year increase in net profit to INR 390 Cr, compared to INR 254 Cr in the same period last year. The earnings surpassed Street estimates, which had pegged the profit at INR 374 Cr.

Further, the company’s board has also recommended a final dividend of INR 10 per equity share for the financial year 2024-25.

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