News

Apollo Hospitals to hive-off pharmacy, digital health businessesApollo Hospitals has approved a reorganisation plan to spin off and list its omni-channel pharmacy and digital health business within 18–21 months, aiming to create a ₹25,000 crore healthcare platform.By PTI June 30, 2025, 9:36:15 PM IST (Published)2 Min ReadApollo Hospitals Enterprise on Monday said its board has approved the separate listing of its omni-channel pharmacy and digital health businesses within 18–21 months, as part of a broader reorganisation to unlock value.

The board of directors of Apollo Hospitals and its subsidiary Apollo HealthCo have given in-principle approval for a composite scheme of arrangement.

The scheme entails the demerger of the omni-channel pharmacy and digital health business — including Apollo’s telehealth vertical and its investment in Apollo HealthCo Ltd (AHL) — into a new entity (NewCo). This will be followed by the amalgamation of AHL with NewCo.

Subsequently, Keimed Pvt Ltd, one of India’s largest wholesale pharmaceutical distributors, will also be merged into the new entity.

Apollo said the scheme will create a formidable pharmacy distribution and digital health platform, with stated plans to achieve ₹25,000 crore in revenue by FY27.

Upon the scheme’s effectiveness, the new entity will become an Indian Owned and Controlled Company (IOCC) and will seek a listing on Indian stock exchanges. Apollo said the listing is expected within 18–21 months.

Also Read: Apollo Hospitals is doubling down on its biggest and most profitable unit

The new entity also proposes to consolidate the front-end pharmacy business by acquiring the remaining 74.5% stake in Apollo Medicals Pvt Ltd (AMPL), which owns 100% of Apollo Pharmacies Ltd (APL).

Apollo Hospitals Enterprise Ltd (AHEL) will retain a 15% stake in NewCo to ensure a seamless and comprehensive healthcare offering across the patient lifecycle.

“The omni-channel pharmacy business and integrated digital healthcare ecosystem will be a unique model to enable access to high-quality healthcare for millions of Indians,” said Apollo Hospitals Group Chairman Dr Prathap C Reddy.

Managing Director Suneeta Reddy added that the proposal allows shareholders to gain direct shareholding in the country’s largest pharmacy and digital health platform.

Apollo HealthCo Executive Chairperson Shobana Kamineni said: “Once integrated, the new entity will be a truly customer-focused healthcare leader, delivering medicines from 7,000+ physical stores and an online platform serving over 19,000 pincodes, with Keimed ensuring supply chain integrity. Our aspiration is to serve over 100 million Indians.”

Shares of Apollo Hospitals Enterprise ended 0.87% lower at ₹7,242.75 on the BSE.Continue ReadingCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsApollo HospitalsApollo Pharmacydemergershare market today