When contacted, Sunita Reddy, director finance, Apollo Hospitals Ltd has confirmed the development. The dilution by TWL Holdings was a time factor as it has been with us for the past 10 years. This will not have any material impact on our business, she said.
Kahazanah said that it has bought 5.5 million shares of Apollo from TWL for a price of Rs 350 per share, Khazanah believes the investment in Indias leading private health care provider will present a strong platform to participate in the high growth opportunities of the Indian economy and the broder regional healthcare sector.
The Reddy family, promoters of Apollo, was holding 34.22% in Apollo before its just concluded GDR issue. After the GDR issue, their stake would drop to a tad lower than 30%. Apollo has recently raised $65.1 million through a GDR issue to part fund its expansion plans. Apollo sources also said that some other FIIs like Capital Group, One Equity Partners and Fidelity among others had participated in the GDR issue. They, however, refused to disclose the exact holding of each investor.
According to market sources, IFC is also planning to pick up close to 6% stake in Apollo Hospitals for a consideration of $20 million. The stock market, however, was cold to the deal. Apollo stock closed at Rs 396.65 on The Stock Exchange, Mumbai, up marginally by 0.5% on Wednesday.