Shares of Apollo Hospitals climbed 4% after the company announced a strategic restructuring to unlock value by spinning off its pharmacy and digital health businesses into a separate listed entity. As of 9:37 AM, the shares were trading 4.10% higher at Rs 7,539.00.
The board of Apollo Hospitals and its subsidiary, Apollo HealthCo, has given in-principle approval for a composite scheme of arrangement. As per the proposal, Apollo will demerge its omni-channel pharmacy, telehealth services, and digital health business into a newly formed entity, tentatively referred to as NewCo. Following the demerger, Apollo HealthCo will be merged into NewCo.
In addition, Keimed Pvt Ltd — a major pharmaceutical distributor in India — will also be brought under NewCo, creating a fully integrated pharmacy and digital healthcare platform. The company aims for the new unit to achieve ₹25,000 crore in revenue by FY27.
NewCo will also acquire the remaining 74.5% stake in Apollo Medicals Pvt Ltd, which holds full ownership of Apollo Pharmacies Ltd. This move consolidates control over the retail pharmacy business.
Apollo Hospitals will retain a 15% stake in the new entity. The listing of NewCo on Indian exchanges is expected within 18–21 months, subject to regulatory approvals. The restructuring is aimed at streamlining operations and boosting long-term shareholder value.
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