Apollo Hospitals MD Suneeta Reddy sells 1.3% stake

The transaction was executed for INR 7,850 per share, raising gross proceeds of INR 1,489.33 Cr.

Apollo Hospitals confirmed that Managing Director Suneeta Reddy has sold 1,897,239 equity shares of the company through a block deal on the stock exchanges.

The transaction, representing approximately 1.3 per cent of the company’s equity, was executed for INR 7,850 per share, raising gross proceeds of INR 1,489.33 Cr.

The sale was conducted by the promoter group, with Reddy acting as the seller on their behalf.

According to the company’s disclosure to stock exchanges under Regulation 30, the proceeds from the transaction will be used to reduce debt at the promoter group level and to substantially lower the level of pledged promoter holdings.

Apollo stated that the deal fulfils a commitment made to investors to bring down pledged shares, which had previously stood at over 13 per cent of promoter holdings.

Following the completion of the sale, the promoter group’s shareholding in Apollo Hospitals has reduced from 29.3 per cent to 28 per cent.

The level of pledged shares has dropped sharply from 13.1 per cent of promoter holding to about 2 per cent, the company said.

This reduction, Apollo added, is aimed at strengthening the promoter group’s financial position and improving transparency for investors.

The block deal was executed on August 22, 2025, with Morgan Stanley India Company acting as the broker and bookrunner. The identity of the buyers was not disclosed in the filing.

Block deals of this nature are commonly undertaken with institutional investors, though the company’s release did not specify any participants on the buy side.

The transaction value of INR 1,489.33 Cr makes this one of the larger recent secondary market share sales by an Indian healthcare company’s promoter group.

The company’s shares traded marginally lower following news of the deal. Market data showed a small dip of less than one per cent during the day’s session, before stabilising later in trade.

This is not the first instance of promoter stake sale by Apollo Hospitals in recent years. The group has previously divested smaller stakes to raise funds for debt reduction and expansion initiatives.

The latest transaction, however, marks a significant reduction in pledged holdings, a factor often monitored closely by investors, as it reflects the financial leverage of controlling shareholders.

Apollo Hospitals reiterated in its disclosure that the underlying fundamentals of the company remain unchanged by the sale.

The block deal pertains solely to the promoter group’s financial structuring and has no impact on day-to-day operations. The healthcare provider continues to operate with a nationwide network of hospitals, pharmacies and digital health services, and recently reported improved performance in its latest quarterly results.

The exchange filing emphasised that the promoter group remains committed to Apollo Hospitals’ long-term growth. Despite the reduction, promoters continue to hold over 28 per cent of the company, maintaining significant influence in its strategic direction.

The company noted that the transaction supports its stated goal of reducing pledged shares, thereby improving governance standards and strengthening investor confidence.

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