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).
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.
