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Business Standard
8 hours ago
- Business
- Business Standard
Apollo eyes 20-23% growth in new co; says restructuring to unlock value
Apollo Hospitals Enterprise Ltd (AHEL) on Tuesday said its ongoing restructuring aims to unlock the value of its omni-channel pharmacy and digital businesses, while enhancing shareholder returns. The newly formed entity is expected to achieve a year-on-year growth rate of 22–23 per cent, driven by the e-pharmacy segment and other business verticals, with a revenue target of Rs 25,000 crore by FY27. The digital health platform is also expected to break even within the next financial year. On Monday, the Chennai-based AHEL announced plans to spin off its digital health and pharmacy distribution businesses into a separate entity, with plans to list the new entity within 18 to 21 months. As part of the restructuring, the company's omni-channel pharma and digital health business, Apollo HealthCo, will first be demerged from AHEL into a new entity, following which its pharma distribution arm, Keimed, will be merged into the new company. Its current revenue stands at around Rs 16,300 crore. The company has stated plans to achieve a revenue run rate of Rs 25,000 crore by FY27 with 7 per cent EBITDA margins, said Suneeta Reddy, Managing Director, Apollo Hospitals Enterprise. After the entire restructuring process—expected to be completed by the listing of the new company by February 2027—the new entity will include the digital health platform Apollo 24/7, the offline pharmacy business of Apollo HealthCo, Keimed, and the telehealth services business. 'We are looking at a growth of around 22 per cent to 23 per cent on a year-on-year basis. In the first two quarters—Q4 and Q1 of this year—we have been able to beat that number reasonably well, and I believe that traction is on. It will primarily come from the e-pharmacy business, wherein we have started touching around Rs 165 crore to Rs 170 crore on a month-on-month basis between the platform and some of the other supporting engines,' said Madhivanan Balakrishnan, Chief Executive Officer of Apollo HealthCo. 'Both the consult business and the diagnostic business, which we work very closely with Apollo Hospitals, are also showing an uptick. There are two more lines of business which we are adding—one is insurance, which is in the early stages; that will also contribute to growth, not just as a standalone line of business but also as a feeder into our primary pharmacy and healthcare lines of business. 'And third, this year we see a reasonable amount of GMV—also more than GMV—revenue coming from our monetisation initiatives. We are reasonably confident of 20 to 25 per cent growth between both AHEL as well as Keimed once it comes through,' Balakrishnan added.
Bloomberg
14 hours ago
- Business
- Bloomberg
Apollo Hospitals Shares Jump to Record on Healthtech Arm Spinoff
Shares of Apollo Hospitals Enterprise Ltd., India's largest healthcare services firm, surged to a record Tuesday after it announced plans to merge its digital health and pharmacy businesses and spin them off as a new listed entity. The stock jumped as much as 4.7% after it said late Monday it will merge pharmacy business Apollo Healthco Ltd. and wholesale distributor Keimed Pvt. with Apollo Healthtech and list the newly created unit in 18 to 21 months.
Time of India
a day ago
- Business
- Time of India
Apollo Hospitals to spin off digi health, pharmacy business
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Mumbai: Apollo Hospitals Enterprises (AHEL), the country's largest listed healthcare chain, and its subsidiary Apollo HealthCo have decided to demerge their omnichannel pharma and digital health businesses (24x7 telehealth business ) into a new entity that garners nearly $2 billion in annual revenues - already a record for India's fragmented drug-retailing industry. The business will be separately listed composite scheme creates a formidable omnichannel pharmacy distribution and digital health platform leader in India, with scale of Rs 16,300 crore ($1.9b illion) of revenue in FY25, with stated plans to achieve Rs 25,000 crore revenue by FY27, on an ebidta - or operating - margin of about 7%.By the arrangement, the new entity will get automatically listed in about 18 to 21 months, after regulatory approvals, AEHL said. Each shareholder of AHEL will be entitled to 1,952 shares of the new shares, with a market capitalisation of about Rs 1.04 lakh crore, slid about a percentage point Monday on the NSE to Rs 7,238 move by Dr Prathap Reddy-led company will create India's largest omnichannel pharmacy platform and distribution business as the plan of the composite scheme also provides for the amalgamation of Keimed, India's leading wholesale pharma distribution arm of the flagship Hospitals said Monday the new business will comprise Apollo 24/7, the digital health platform, the offline pharma distribution of AHL, the third-party pharma distribution of Keimed, and telehealth services of combination of businesses is anticipated to generate substantial promoter family holding in the new company will be approximately 36.5%. A statement from the company said that Apollo Hospitals proposes to unlock value through strategic re-organisation, enabling direct listing of its omnichannel pharmacy and digital health Kamineni, who is the chairperson of Apollo HealthCo, will be the executive chairperson of the new entity. The promoter family will be represented on the board of directors."The NewCo will focus on deepening customer penetration and experience through an integrated healthcare platform and enabling cross synergies between AHL and NewCo," according to sources aware of the development. "Looking ahead, this presents a significant opportunity for the group, with a potential customer funnel of over 100 million individuals into the Apollo healthcare universe," the statement noted.
Time of India
a day ago
- Business
- Time of India
Apollo Hospitals to hive off pharmacy, digital biz
Chennai: Apollo Hospitals Enterprise, controlled by the Prathap Reddy family, has announced a significant reorganisation where its pharmacy distribution and digital health operations will be carved out into a separate entity. This new entity, Apollo Healthtech, will seek listing on stock exchanges over the next 18 to 21 months, with current Apollo Hospitals shareholders receiving proportionate shares in the new company. The deal will create a leading omni-channel pharmacy distribution and digital health platform in India with revenues of Rs 16,300 crore ($1.9 billion), Apollo Hospitals said in a statement. Currently, Apollo Healthco (AHL) manages the wholesale pharmaceutical trading and Apollo 24/7 digital platform, while Keimed oversees wholesale distribution of pharmaceuticals and wellness products. Apollo Hospitals holds about 79% ownership in AHL, and Keimed operates as a related party to Apollo Hospitals. You Can Also Check: Chennai AQI | Weather in Chennai | Bank Holidays in Chennai | Public Holidays in Chennai The share allocation structure stipulates that for every 100 shares held in Apollo Hospitals, shareholders will receive 195.2 shares in the new company. AHL shareholders will get 89.5 shares for every 100 shares owned, while Keimed shareholders will receive 3045.2 shares for every 100 shares held. Following the completion of this demerger, both AHL and Keimed will cease to exist. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Cardiologists: 1 Teaspoon of This Before Bed Melts Belly Fat Like Crazy Hollywood News | USA Click Here Undo Under the agreement terms, Apollo Hospitals shall restrict its pharmaceutical operations exclusively to hospital-based pharmacies, refraining from any involvement in e-commerce, retail or wholesale pharmacy ventures. Veda Corporate Advisors was the exclusive financial advisor to the transaction. The new company, Apollo Healthtech, will subsequently acquire 74.5% stake in Apollo Medicals, consolidating the front-end pharmacy business. Apollo Hospitals will own a 15% stake in Apollo Healthtech and will have one nominee director on the board, the Chennai-based company said. Apollo Hospitals chairman Prathap C Reddy, said: "Today's developments mark the beginning of the next chapter of Apollo Hospitals. 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."
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Business Standard
a day ago
- Business
- Business Standard
Apollo Hospitals to list digital health, pharmacy unit in 18-21 months
Indian hospital chain Apollo Hospitals said on Monday it will spin off and separately list its digital health and pharmacy unit within 18 to 21 months, as part of a reorganisation. Apollo shareholders will receive 195.2 shares of the spun-off entity for every 100 shares they currently own. The hospital operator will retain a 15 per cent stake in the entity, which it is yet to be named, and will also have its nominee on the board of the new company. Apollo Hospitals expects the new entity, which would also include pharmacy distributor Keimed, to clock revenue of about 250 billion rupees ($2.92 billion) for the year ending March 2027, and earnings before interest, taxes, depreciation and amortisation margin of roughly 7 per cent for the same period.
