Apollo rejig could spur re-rating

Apollo Hospitals Enterprise Ltd has decided to give its existing shareholders direct ownership of its subsidiary, Apollo Healthco Ltd.

- Manish Joshi

The new business will have online, offline, retail and wholesale pharmacy segments under one umbrella, apart from the digital consultation and treatment business of Apollo 24/7.

Apollo Healthco will have nearly 667 million equity shares with a face value of ₹2 each.

Apollo Hospitals' shareholders will receive 195.2 shares of Apollo Healthco for every 100 shares they hold. Apollo Healthco's listing is likely in 18-21 months. The exercise would mean that Apollo Hospitals would only have a 17.5% stake (direct plus indirect through its other subsidiaries) in Apollo Healthco against the earlier plan of owing 59.2%.

The two separate listed entities with dedicated leadership will allow the management teams to sharpen their focus on hospital and pharmacy businesses separately. Following the announcement, Apollo Hospitals shares touched a new 52-week high of ₹7,584.50 apiece on Tuesday.