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Business Standard
a day 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.
Mint
2 days ago
- Business
- Mint
Apollo Hospitals to list its pharmacy and digital health business in 18-21 months
Apollo Hospitals Enterprise Limited (AHEL) late on Monday announced plans to list its omnichannel pharmacy and digital health business in the next 18-21 months as part of a strategic reorganization. The company's board of directors has approved the demerger of its omnichannel pharma and digital health business, Apollo HealthCo, into a new entity—NewCo—through a composite scheme of arrangement. Following the demerger, Keimed, the wholesale pharmaceutical distributor that Apollo acquired last year, will be amalgamated with NewCo. Apollo Hospitals shareholders will have direct shareholding in the combined entity. For every 100 shares of AHEL, shareholders will receive 195.2 shares of the new entity, the company said. The proposed transaction will result in the creation of the largest, integrated omnichannel healthcare ecosystem with a FY25 revenue of ₹ 16,300 crore ($1.9 billion) in FY25, the company said. The new business, comprising Apollo 24/7, the digital health platform, the offline pharma distribution business, Keimed, and telehealth services, is expected to achieve a revenue run rate of ₹ 25,000 crores ($2.9 billion) by FY27. In an interview with Mint last week, Shobana Kamineni, executive chairperson of Apollo HealthCo, said that the entity is expected to hit a ₹ 30,000 crore valuation in the next five to six years, as it grows exponentially. The listing is expected within 18 to 21 months. NewCo will become an Indian owned and controlled company (IOCC) once the scheme is put into effect. NewCo plans to consolidate the front-end pharmacy business by acquiring the remaining 74.5% stake in Apollo Medicals Pvt. Ltd (AMPL), which owns 100% of Apollo HealthCo. This will enable the NewCo to participate fully in the business economics of retail pharmacies, the company said. AHEL will retain 15% stake in NewCo and will have one nominee director on the Board of NewCo.
Business Upturn
2 days ago
- Business
- Business Upturn
Apollo Hospitals shares surge 4% after board approves plan to list pharmacy, digital health arms
Shares of Apollo Hospitals climbed 4% after the company announced a strategic restructuring to unlock value by spinning off its pharmacy and digital health businesses into a separate listed entity. As of 9:37 AM, the shares were trading 4.10% higher at Rs 7,539.00. The board of Apollo Hospitals and its subsidiary, Apollo HealthCo, has given in-principle approval for a composite scheme of arrangement. As per the proposal, Apollo will demerge its omni-channel pharmacy, telehealth services, and digital health business into a newly formed entity, tentatively referred to as NewCo. Following the demerger, Apollo HealthCo will be merged into NewCo. In addition, Keimed Pvt Ltd — a major pharmaceutical distributor in India — will also be brought under NewCo, creating a fully integrated pharmacy and digital healthcare platform. The company aims for the new unit to achieve ₹25,000 crore in revenue by FY27. NewCo will also acquire the remaining 74.5% stake in Apollo Medicals Pvt Ltd, which holds full ownership of Apollo Pharmacies Ltd. This move consolidates control over the retail pharmacy business. Apollo Hospitals will retain a 15% stake in the new entity. The listing of NewCo on Indian exchanges is expected within 18–21 months, subject to regulatory approvals. The restructuring is aimed at streamlining operations and boosting long-term shareholder value. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Ahmedabad Plane Crash Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
Time of India
2 days 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
2 days ago
- Business
- Time of India
Apollo Hospitals to hive-off pharmacy, digital health businesses
Apollo Hospitals Enterprise on Monday said its board has approved separate listing of its omnichannel pharmacy and digital health businesses within 18-21 months, as part of reorganisation exercise to unlock value. The board of directors of Apollo Hospitals and Apollo HealthCo, a subsidiary of the the healthcare major, have accorded in-principle approval for the composite scheme of arrangement. The scheme entails the demerger of the Omni Channel Pharma and Digital Health business -- comprising the telehealth business of Apollo and its investment in AHL (Apollo HealthCo Limited) -- into a new entity. Following the demerger, the scheme provides for the amalgamation of AHL with the new entity. It would subsequently be followed by the amalgamation of Keimed Pvt Ltd , India's leading wholesale pharmaceutical distributor, with NewCo (new entity). Live Events The scheme creates a formidable omnichannel pharmacy distribution and digital health platform leader in India, with stated plans to achieve Rs 25,000 crore revenue by FY27, Apollo Hospitals Enterprise said in a regulatory filing. Upon the effectiveness of the Scheme, the new entity will become an Indian Owned and Controlled Company (IOCC) and will apply for listing on the stock exchanges, it added. The listing is expected within 18-21 months, the healthcare major said. Upon becoming an IOCC, the entity also proposes to consolidate the front-end pharmacy business by acquiring the remaining 74.5 per cent stake in Apollo Medicals Pvt Ltd (AMPL), which owns 100 per cent of Apollo Pharmacies Limited (APL), it said. Apollo Hospitals Enterprise Ltd (AHEL) will retain 15 per cent stake in the 'NewCo' to ensure an integrated, seamless, and comprehensive healthcare offering across the patient lifecycle, it added. "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," Apollo Hospitals Group Chairman Prathap C Reddy said. Apollo Hospitals Enterprise MD Suneeta Reddy said the proposal enables the healthcare provider's shareholders to gain direct shareholding to country's largest omni-channel pharmacy and digital health platform. "The new entity, once integrated, will be a truly customer-focused healthcare leader, with capabilities across the value chain. Delivering medicines seamlessly from 7000+ physical stores, online delivery platform serving over 19,000 pincodes, with Keimed ensuring supply chain integrity, our aspiration is that we will serve over 100 million Indians," Apollo HealthCo Executive Chairperson Shobana Kamineni said. Shares of Apollo Hospitals Enterprise ended 0.87 per cent down at Rs 7,242.75 apiece on BSE. Economic Times WhatsApp channel )
