Apollo Hospitals Enterprise Ltd. (AHEL) has announced a strategic spin-off of its omni-channel pharmacy and digital health businesses into a new company. The move aims at unlocking significant value for shareholders through direct listing and expanding retail healthcare access across India.
In a major restructuring, Apollo will transfer its digital health, telehealth, and front-end pharmacy businesses into a new company, temporarily named “NewCo”. The plan involves three steps: merging Apollo HealthCo Ltd. into NewCo, integrating Keimed Pvt. Ltd., and acquiring the remaining 74.5% stake in Apollo Medicals Pvt. Ltd.
The consolidated unit is expected to post revenues of ₹16,300 crore in FY25 and aims to grow to ₹25,000 crore by FY27. EBITDA margins are projected at 7%, supported by operational synergies and tech-driven efficiency.
Shareholders of AHEL will receive 195.2 shares of NewCo for every 100 shares held. This allows direct participation in one of India’s fastest-growing healthcare segments. AHEL will retain a 15% stake in NewCo and one board seat, ensuring strategic alignment.
The listing of NewCo is planned within 18 to 21 months, and the company will be classified as an Indian Owned and Controlled Company (IOCC), complying with domestic regulations for retail health ventures.
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NewCo is positioned to be a leading player in the Indian retail healthcare space. It will control over 7,000 pharmacy stores and deliver services across 19,000 pincodes, reinforcing its national footprint. With digital integrations, NewCo aims to serve over 100 million customers. This reach, coupled with backend integration through Keimed, is expected to generate significant logistics and procurement advantages.
The spin-off eliminates holding company structure discounts and builds a pure-play platform focused entirely on consumer health. Apollo’s decision supports its long-term vision of democratising healthcare access while increasing shareholder value. Valuation tasks were performed by KPMG and BDO, with a fairness opinion from Axis Capital and legal advisory by Shardul Amarchand Mangaldas.
On July 1, 2025, Apollo Hospitals Enterprise share price opened at ₹7,475.00 on NSE, above the previous close of ₹7,242.00. During the day, it surged to ₹7,584.50 and dipped to ₹7,432.50. The stock is trading at ₹7,442.50 as of 9:55 AM. The stock registered a significant gain of 2.77%.
Over the past week, it has moved up by 5.69%, over the past month, it has moved up by 9.25%, and over the past 3 months, it has moved up by 12.22%.
The spin-off marks a major shift for Apollo Hospitals toward retail health dominance, operational focus, and value unlocking. With ambitious growth targets, a robust retail network, and plans for public listing, the company is aligning its business for the next phase of scalable healthcare services in India.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Jul 1, 2025, 10:41 AM IST
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