Apollo to List Digital Health & Pharmacy Arm as Standalone Entity

The combined entity will bring together Apollo 24/7 (the digital health platform), offline pharmacy operations from AHL, third-party pharma distribution of Keimed, and AHEL’s telehealth services.

Apollo Hospitals Enterprise Limited (AHEL) has received in-principle board approval to spin off and separately list its digital health and pharmacy business units as part of a broader strategic reorganisation.

The first step involves carving out its omnichannel pharmacy and digital health operations into a new, yet-to-be-named entity.

Following this, Apollo HealthCo (AHL), the group’s omnichannel healthcare arm, and Keimed, a wholesale pharma distributor, will be merged into the new company.

The combined entity will bring together Apollo 24/7 (the digital health platform), offline pharmacy operations from AHL, third-party pharma distribution of Keimed, and AHEL’s telehealth services.

AHEL shareholders will receive 195.2 shares of the new company for every 100 shares they hold. The new entity is expected to be listed within 18-21 months. AHEL will retain a 15% stake and nominate a board member to the new entity.

Pending shareholder and regulatory approvals, the restructured firm will also acquire a 74.5% stake in Apollo Medicals (AMPL), which owns 100% of Apollo Pharmacies, further consolidating its pharmacy footprint.

According to AHEL, “The proposed transaction will result in the creation of the largest, integrated omni-channel healthcare eco-system with a FY25 revenue of INR 16,300 Cr ($1.9 billion).”

The business combination is projected to create strong synergies, with expected revenue of INR 25,000 Cr ($9 billion) by FY27.

Prathap C Reddy, Chairman, Apollo Hospitals Group, said, “The omnichannel pharmacy business and integrated digital healthcare ecosystem will be a unique model to enable access to high-quality healthcare for millions of Indians. What Apollo Hospitals achieved for the creation of the private healthcare industry in India, this new entity will create for the digitally forward generation of tomorrow.”

AHEL Managing Director Suneeta Reddy added that while AHEL will maintain its focus on healthcare delivery, the new entity will accelerate its efforts on deepening customer engagement and penetration, with clear capital allocation outlays, growth plans and management teams driving both.

Shobana Kamineni, Executive Chairperson of Apollo HealthCo, will continue as chairperson of the new entity, with other promoters serving as directors.

Veda Corporate Advisors acted as the exclusive financial advisors for the transaction.

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