Apollo's Strategic Healthcare Demerger & Digital Listing

Last year, Apollo Hospitals Enterprise Limited announced its plan to consolidate its omnichannel medicine distribution business under itself however, in a revised scheme, the group will also pave the way for its separate listing through a complex scheme of arrangement.

- Anirudha Jain

Apollo Hospital Enterprise Limited (“AHEL” or “Demerged Company”) with its subsidiaries, provides healthcare services in India and internationally and operates through Healthcare Services, Retail Health & Diagnostics, Digital Health & Pharmacy Distribution, and Other segments. AHEL was incorporated in 1979 and is based in Chennai, India. The equity shares of AHEL are listed on nationwide bourses.

Keimed Private Limited (“KPL” or “Transferor Company 2”) is one of the India's largest pharma distributor engaged in the business of distribution and trading of pharmaceutical products, medical goods, consumables, and personal care products, through its branches and wholly owned subsidiaries across India. Circa ~44% of Keimed is directly owned by promoters of AHEL. Apart from AHEL promoter, AHEL also owns stake in KPL through joint venture entity, Family Health Plan Insurance TPA Limited (holding 16.1% in KPL) & through Apollo Healthco Limited (holding 11.2% in KPL). In addition to this, certain shares are also held by outsiders (circa ~29%).

In 2024, Keimed also completed merger of 19 subsidiary companies with itself.

Apollo Healthtech Limited (“Apollo Healthtech” or “Resultant Company”) is incorporated to facilitate proposed demerger. Currently, Apollo Healthtech is a wholly owned subsidiary of Apollo Hospital Enterprise Limited.