Apollo Hospitals Prescribes a Digital Revolution: Pharmacy & Health Tech Spin-Off Set to Go Public!

In a landmark move set to reshape India's healthcare landscape, Apollo Hospitals Enterprise Ltd (AHEL) has announced a strategic reorganisation, spinning off its omnichannel pharmacy and digital health businesses into a new, independently listed entity. The board has given in-principle approval for this demerger, aiming to unlock value and accelerate growth in the rapidly expanding digital healthcare sector.

 

Key Highlights:

 

Spin-Off & Listing: Apollo will carve out its digital health and pharmacy operations—including Apollo 24/7, offline pharmacy distribution, Keimed Pvt Ltd, and telehealth services—into a new company, with a planned stock market listing in the next 18–21 months.

 

Shareholder Benefit: For every 100 shares of AHEL, shareholders will receive 195.2 shares in the new entity, granting them direct ownership in India’s largest integrated digital health and pharmacy platform.

 

AHEL Stake: Apollo Hospitals will retain a 15% stake in the new company, ensuring continued strategic alignment and board representation.

 

Growth Ambitions: The new entity is targeting ₹250,000 crore (₹2.5 trillion) in revenue by FY27 with a 7% EBITDA margin, leveraging both online and offline channels to serve over 100 million Indians.

 

Business Integration: The spin-off will consolidate Apollo’s pharmacy distribution, digital health platform, and telemedicine under one roof, including the planned acquisition of a 74.5% stake in Apollo Medicals Pvt Ltd (AMPL), which owns Apollo Pharmacies Ltd.

 

Strategic Rationale: The restructuring allows Apollo to focus on its core hospital business while the new entity aggressively scales its digital and pharmacy operations, positioning itself as a leader in India’s booming digital health market.

 

Leadership: Shobana Kamineni will chair the new entity, with other Apollo promoters taking key roles.

 

Industry Impact:

This bold move is expected to create India’s most formidable omnichannel healthcare ecosystem, combining 7,000+ physical stores, an extensive online delivery network, and robust supply chain capabilities. The spin-off reflects Apollo’s vision to cater to a digitally savvy generation, providing seamless, high-quality healthcare access nationwide.

 

Source: The Hindu Business Line