Apollo Hospitals to spin off and separately list digital health and pharmacy business

As a first step, the omnichannel pharma and digital health business will be spun off into a new, unnamed entity
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Apollo Hospitals Enterprise Limited (AHEL) on Monday announced that its board has given in-principle approval for the spin-off and separate listing of its digital health and pharmacy business units as part of a strategic reorganisation.

As a first step, the omnichannel pharma and digital health business will be spun off into a new, unnamed entity. Subsequently, Apollo’s omnichannel healthcare arm Apollo HealthCo (AHL) and wholesale pharma distributor Keimed Private Ltd will be merged with the new entity.

The resulting entity (which has not been named) will thus comprise digital health platform Apollo 24/7, the offline pharma distribution of AHL, the third-party pharma distribution of Keimed, and telehealth services of AHEL.

AHEL shareholders will receive 195.2 shares of the new entity for every 100 shares they currently own and the new entity is expected to be listed in in 18-21 months, the hospital chain said in an exchange filing. AHEL will retain a 15 per cent stake in the new entity and will also have its nominee on the board of the new company.

Once shareholder and regulatory approvals are in place, the new entity also proposes to consolidate the front-end pharmacy business by acquiring a 74.5 per cent stake in Apollo Medicals Pvt. Ltd. (AMPL), which owns 100 per cent of Apollo Pharmacies Limited.

“The proposed transaction will result in the creation of the largest, integrated omni-channel healthcare eco-system with a FY25 revenue of ₹16,300 crore ($1.9billion) in FY25,” AHEL said in a statement. “The combination of businesses is anticipated to generate substantial synergies, and the new entity is expected to achieve a revenue run rate of ₹25,000 crore ($9 billion) by FY27.”

“The omnichannel pharmacy business and integrated digital healthcare ecosystem will be a unique model to enable access to high-quality healthcare for millions of Indians. What Apollo Hospitals achieved for the creation of the private healthcare industry in India, this new entity will create for the digitally forward generation of tomorrow,” Prathap C Reddy, chairman, Apollo Hospitals Group, said.

Suneeta Reddy, Managing Director, AHEL, said that AHEL will continue its focus on healthcare delivery, while the new entity will accelerate its efforts on deepening customer engagement and penetration, with clear capital allocation outlays, growth plans and management teams driving both.

Shobana Kamineni, Executive Chairperson, Apollo HealthCo, will continue to be the chairperson of the new entity, while the other promoters will be directors of it.

Veda Corporate Advisors were the exclusive financial advisors to the transactions.

Published on June 30, 2025