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Apollo Hospitals Enterprise is securing a Rs 2,475 crore investment from private equity firm Advent International for its subsidiary Apollo HealthCo, which manages their Apollo 24/7 online healthcare platform. Further, there are plans to merge Keimed, a promoter-owned wholesale pharma distribution business, with Apollo HealthCo over the next 24 to 30 months. This investment and merger create a combined entity valued at Rs 22,481 crore, with Advent International owning 12.1%.
Apollo 24/7 is valued at Rs 14,478 crore, while Keimed is valued at Rs 8,003 crore. Following the merger, Keimed shareholders will hold a maximum of 25.7% stake in the combined entity, while Apollo Hospitals Enterprise will remain the majority shareholder with at least a 59.2% stake. The merger is subject to customary approvals.
Some investors are concerned this valuation for Apollo 24/7 might be lower than expected.
Apollo Hospitals Enterprise is a major healthcare provider in India. It has a vast network including hospitals, pharmacies, clinics, diagnostic centers, and telemedicine services. The company is known for its expertise in cardiology, cancer care, and adopting advanced medical technologies.
Apollo Hospitals Enterprise reported consolidated net profit of Rs 245.3 crore in Q3 FY24, registering a growth of 59.8% as compared from Rs 153.5 crore posted in Q3 FY23. Revenue from operations stood at Rs 4,850.6 crore during the third quarter, up 13.77% from Rs 4,263.6 crore recorded in the same period last fiscal. Profit before tax increased 36.63% year on year (YoY) to Rs 363.3 crore in the quarter ended 31 December 2023.
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