Apollo Hospitals is charting a new course for its digital and pharmacy businesses with plans to spin them off into a new entity and list it within the next 18–21 months — a move expected to unlock significant shareholder value and streamline operations. In a regulatory filing, the company said that its board of directors has approved a composite scheme of arrangement involving its subsidiaries Apollo Healthco Limited (AHL) and Keimed Private Limited, alongside its wholly owned subsidiary Apollo Healthtech Limited.
Apollo informed the NewCo will be classified as an Indian Owned and Controlled Company (IOCC) and is expected to be listed on Indian stock exchanges within 18–21 months. As part of the plan, NewCo will acquire the remaining 74.5 per cent stake in Apollo Medicals Pvt Ltd (AMPL), which owns 100 per cent of Apollo Pharmacies Ltd (APL), consolidating control of its front-end pharmacy business.
After the restructuring, Apollo Hospitals Enterprise Ltd (AHEL) will hold a 15 per cent stake in NewCo to maintain continuity and integration throughout the patient care journey and overall healthcare ecosystem.
As part of the proposed scheme, Apollo will spin off its omni-channel pharmacy and digital health businesses—including its telehealth division and stake in Apollo HealthCo Ltd (AHL)—into a newly formed entity (NewCo). Subsequently, AHL will be merged into this NewCo.
In addition, Keimed Pvt Ltd will also be consolidated into the new entity. “The combination of businesses is anticipated to generate substantial synergies, and the New Co is expected to achieve a revenue run rate of Rs 25,000 crore by FY27,” it said.
The proposed structure enables direct access of omni-channel pharmacy and digital health business to the shareholders of AHEL. For every 100 shares of AHEL, it added, the shareholders of AHEL will receive 195.2 shares of NewCo, enabling their direct participation in the value unlock.
Dr Prathap C Reddy, Chairman, ApoIJo Hospitals Group, said, “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. I wish both the teams all the best as they enter uncharted territory with infinite potential.”
The identified business undertaking in the scheme refers to two main parts:
a) The omni-channel pharmacy business, which involves buying pharmaceutical and wellness products and selling them wholesale to pharmacies.
b) The digital healthcare platform business, which includes running and managing the Apollo 24/7 online health platform; the telehealth operations of AHEL, which cover 24/7 emergency and specialist teleconsultation services, and basic healthcare at tele-emergency centers; managing mobile medical/health units; setting up and running digital dispensaries at government and corporate client locations.
The demerged division recorded a turnover of Rs 70.13 crore for the financial year ending March 31, 2025, accounting for 0.86 per cent of the company’s total standalone turnover for the same period.
Once the scheme takes effect, Apollo Hospitals said, the resultant company will be involved in the omni-channel pharmacy distribution business—which includes wholesale distribution of various pharmaceutical, healthcare, and wellness products—and the digital healthcare platform business, which covers the development, operation, and management of the Apollo 24/7 online platform, along with telehealth services.
Shares of Apollo Hospitals were up 2.74 per cent at 11:20 am today at a trading price of Rs 7,441.35.