WEF India Economic Summit 2019: Apollo Hospitals To Consider Listing Pharmacy Business

Apollo Hospitals Enterprise Ltd. will consider listing Apollo Pharmacy on the stock market, according to the company’s Executive Vice-Chairperson Shobana Kamineni.

“Apollo has always been responsible towards its shareholders and that behaviour will not change,” Kamineni said in an interview with BloombergQuint on the sidelines of India Economic Forum 2019. “There are multiple ways to get great value,” she said when asked about whether the hospital operator will try to list the business.

The Competition Commission of India last month approved the restructuring of Apollo Hospitals’ pharmacy business and its subsequent acquisition by certain investors.

In November last year, Apollo Hospitals had said it would divest its front-end pharmacy business to Apollo Pharmacy for a lump sum cash consideration of Rs 527.8 crore as part of a restructuring exercise.

Following the transaction, Apollo Pharmacy Ltd. will be a wholly-owned subsidiary of Apollo Medicals Pvt. Ltd. in which Apollo Hospitals will have a 25.5 percent stake. The other three investors in Apollo Medicals will be ENAM Securities with 44.7 percent stake, Jhelum Investment Fund 1 with 19.9 percent stake and Hemendra Kothari with 9.9 percent stake, it had said.

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WATCH | Sajeet Manghat in conversation with Shobana Kamineni.