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Apollo Hospitals to Acquire Stake in its Subsidiary Apollo Health & Lifestyle at INR 103.2 Cr

Written by : Nikita Saha

July 8, 2024

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Image Credit: Apollo Hospitals

This acquisition is expected to support AHLL's operations, working capital, and expansion efforts. The process is anticipated to be completed by today.

Apollo Hospitals Enterprises has set foot to acquire a stake in its subsidiary Apollo Health and Lifestyle (AHLL) for a whopping sum of INR 103.2 Cr.

According to the regulatory filing, Apollo Hospitals will purchase 35,12,107 equity shares for INR 103.2 Cr through subscription to the rights issue of AHLL.

Incorporated in 2000, AHLL provides comprehensive healthcare services via its clinics and hospitals across India. Its offerings include the operation of specialty and maternity hospitals, clinics, diagnostic and dialysis centers, and sugar and dental clinics.

This acquisition is expected to support AHLL's operations, working capital, and expansion efforts. The acquisition process is anticipated to be completed by today.

Financial Details

Apollo Enterprise will acquire 35,12,107 equity shares of INR 10 each at INR 294 per share (including a premium of INR 284 per share), totaling INR 103.2 Cr.

The rights issue allows current shareholders to buy more shares at a discount, enabling the company to raise funds without new investors.

Further, Apollo Hospitals confirmed that there will be no change in AHLL's shareholding, and it will remain a controlled subsidiary.

Additionally, the healthcare giant informed that there will be no change in AHLL’s shareholding and it will remain a controlled subsidiary.

"We wish to inform you that the Company is acquiring 35,12,107 equity shares of Rs 10 each at a price of Rs.294 per share (including a premium of Rs.284 per share), aggregating to Rs. 1032.60 million by way of subscribing to the rights issue of Apollo Health and Lifestyle Limited, a subsidiary of the Company (AHLL)," the hospital chain company informed stock exchanges.

Established in 1983 by Dr Prathap C Reddy, Apollo Hospitals Enterprises is the first corporate hospital in the country. It has a robust presence across the healthcare ecosystem, including hospitals, pharmacies, primary care clinics, and diagnostic centers. It also focuses on preventive healthcare and heart health.

Recent Developments of Apollo

Last month, Apollo HealthCo, a subsidiary of (AHEL) announced plans to open three new hospitals in Mumbai and Bengaluru. This initiative is part of AHEL's broader strategy to invest approximately INR 30 billion over the next three years, aiming to add 2,400 beds across various locations.

While its telemedicine branch, Apollo Telehealth collaborated with the Government of Manipur to launch a telemedicine-driven primary health center (PHC) in Borobeka, Manipur in the month of June.

This initiative aims to improve healthcare access for communities affected by recent conflicts in the state.

Moreover, its cancer care centers are also making significant strides, recently, the surgical oncologists at Apollo Cancer Centre (ACC) performed India's first Robotic Cytoreductive Surgery (CRS) with Hyperthermic Intraperitoneal Chemotherapy (HIPEC) for peritoneal surface cancer.

Reportedly, this minimally invasive, robotic-assisted procedure offers patients a new standard of care along with faster recovery and improved quality of life.


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