Apollo Hospitals Enterprise Limited (AHEL) reorganised its business by slump sale of AHEL’s four businesses to form a 100 per cent subsidiary Apollo HealthCo (AHL). The company stated with this move Apollo Group is creating India's largest omni-channel healthcare platform.
AHEL will receive Rs 1,210 crore with the slump sale of these businesses.
AHEL underwent a restructuring by merging business such as AHEL's back-end offline pharmacy business (excluding hospital-based pharmacies); AHEL's digital healthcare platform Apollo 24/7; AHEL's investment in retail pharmacy business (Apollo Medicals Private Ltd); and Apollo 24/7 brand.
This platform will combine the strengths of Apollo Group's offline healthcare leadership with Apollo Group's new-age digital offerings to address all healthcare consumer needs.
The offline pharmacy business of AHEL will continue to grow to 5,000 stores and maintain a healthy revenue growth rate of 18-20 per cent in the next 3 years. The margin trajectory of this business remains intact.
In addition, the digital healthcare platform Apollo 24/7, has demonstrated the capability of delivering medicines in 2 hours in over 10,000 pin codes combined with the highest availability of medicines.
Apollo 24/7 aspires to achieve 100 million registered users in five years.
Shobana Kamineni, Executive Vice Chairperson, AHEL said "This proposed re-organisation will set the platform for tapping new pools of investor capital that will enable rapid scale up of the digital healthcare platform. At the time of capital raise, AHL valuation will reflect current and future growth potential. Post external capital raise at AHL, AHEL is expected to retain dominant majority shareholding in AHL and a slump sale consideration of Rs 1,210 crore will be received by AHEL.”
Suneeta Reddy, Managing Director, AHEL said "We are always focused on creating and enhancing shareholder value, and we will ensure Apollo 24/7 delivers on its potential, with the separate focused management team we have put in place, who bring with them a deep understanding of healthcare, technology and digital perspectives.”