Apollo Hospitals’ big announcement – will do separate listing of pharmacy and digital health unit

Apollo Hospitals Enterprise said that its board has approved the separate listing of its omni-channel pharmacy and digital health business within 18–21 months as part of a restructuring plan to unlock value for shareholders. The boards of directors of Apollo Hospitals and its subsidiary Apollo HealthCo have given in-principal approval for this scheme of arrangement. Under this scheme, Apollo’s omni-channel pharmacy and digital health business, including the telehealth vertical and investment in Apollo HealthCo Ltd (AHL), will be demerged into a new company (NewCo).

AHL will then be merged with NewCo. Along with this, Keimed Pvt Ltd – one of the largest pharmaceutical distributors in India – will also be merged into this new company. Apollo said the scheme will create a robust pharmacy distribution and digital health platform with a target to achieve revenue of Rs 25,000 crore by FY27.

Listing expected within 18–21 months

After the scheme becomes effective, the new company will become an Indian Owned and Controlled Company (IOCC) and seek listing on Indian stock exchanges. The listing is expected within 18–21 months. The new entity will also consolidate the front-end pharmacy business by acquiring the remaining 74.5 per cent stake in Apollo Medicals Pvt Ltd (AMPL). AMPL is the 100 per cent owner of Apollo Pharmacies Ltd (APL).