Apollo Hospitals' stock price up by more than 3% after decision to spin-off digital health, pharmacy distribution businesses
By Shishta Dutta | Updated at: Nov 26, 2025 11:12 AM IST
Mumbai, July 1, 2025: Apollo Hospitals Enterprise Ltd (NSE: APOLLOHOSP, BSE: 508869) surged over 4% in early trade on Tuesday, 1st July, 2025.. The significant uptick in share price followed the company’s announcement of a strategic “Composite Scheme of Arrangement” involving the demerger and subsequent listing of its digital health and omnichannel pharmacy businesses.
As of 10:40 IST, the stock was trading at ₹7,484 , up by 3.34%. The positive investor response was largely attributed to an investor presentation released by the company late on June 30, which detailed the proposed restructuring.
Digital Platform Demerger Triggers Re-Rating
The composite scheme involves several key steps:
- Demerger: Apollo 24|7, the remote telehealth vertical, and the offline pharmacy distribution business will be demerged into a new entity, referred to as “NewCo” (or Apollo Healthtech Limited).
- Merger: NewCo will then merge with Apollo HealthCo Ltd (which manages wholesale pharmaceutical trading and the Apollo 24|7 digital platform) and Keimed Pvt Ltd (a wholesale pharmaceutical distributor). This consolidation aims to create a formidable omnichannel pharmacy distribution and digital health platform.
- Listing: Once approved by regulators and shareholders, NewCo will seek listing on stock exchanges within an estimated 18–21 months.
Shareholders of Apollo Hospitals will receive 195.2 shares of NewCo for every 100 shares held in the parent company, enabling them to gain direct shareholding in this new, focused entity. The combined entity (NewCo) reported ₹16,267 crore in revenue for FY25 and has ambitious targets, aiming to reach ₹25,000 crore in revenue by FY27 with approximately 7% EBITDA margins.
Key Trading Highlights (as of 09:35 IST)
| Metric | Value |
|---|---|
| Last Traded Price | ₹7,550.00 |
| Day’s High | ₹7,5484.50 (52-Week High) |
| Day’s Low | ₹7,450.00 |
| Previous Close | ₹7,242.00 |
| VWAP | ₹7,493.51 |
| Traded Volume | 1.70 lakh shares |
| Traded Value | ₹127.68 crore |
| 52-Week Low (03-Mar-2025) | ₹6,001.00 |
| Total Market Cap | ₹1,08,219.52 crore |
| Free Float Market Cap | ₹75,582.15 crore |
| Adjusted P/E | 71.38 |
| Index | NIFTY 50 |
Post-Restructuring Shareholding Structure
Apollo Hospitals Enterprise Ltd (AHEL) will also seek to increase its stake in Apollo Medicals Pvt Ltd (AMPL) to 100% AMPL, in turn, owns Apollo Pharmacies Ltd, thereby consolidating the front-end pharmacy retail operations under the new combined entity. AHEL will retain a 15% stake in NewCo to ensure strategic integration and a comprehensive healthcare offering.
| Shareholder Group | Stake in NewCo (Post-Merger) |
|---|---|
| AHEL Shareholders | 59.6% |
| Advent | 12.1% |
| Keimed Promoters & Others | 25.3% |
| AHEL Direct Stake | 4.2% |
| ESOP Pool | 3.0% |
Forward Timeline
The company anticipates obtaining approvals from SEBI and the Competition Commission of India (CCI) by early 2026. This will be followed by necessary shareholder meetings and clearance from the National Company Law Tribunal (NCLT) in February 2027. The listing of NewCo shares is expected shortly thereafter.
What’s Next?
Apollo Hospitals will now work toward securing approvals from SEBI and CCI by early 2026, followed by NCLT clearance in early 2027. The listing of the new digital and pharmacy entity (NewCo) is expected within 18-21 months. Investors will closely watch for updates on leadership, financials, and growth plans. The stock may stay active as the restructuring progresses.
About the Company
Apollo Hospitals Enterprise Ltd, listed on Indian exchanges since 1996, is the country’s largest private healthcare network with a pan-India presence across hospitals, diagnostics, and digital health. The company is part of the benchmark NIFTY 50 index and is categorised under the hospital industry.
REF: https://nsearchives.nseindia.com/corporate/APOLLOHOSP_30062025204818_Investor_presentation_30062025.pdf
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