Shares of Apollo Hospitals Enterprise Ltd climbed nearly 2% on December 24 after the National Stock Exchange (NSE) issued an observation letter with “no objections” to the company’s proposed multi-layered restructuring plan. The development comes after the scheme had already received approval from the Competition Commission of India (CCI) in September, as disclosed in an exchange filing.
At around 11:40 am, Apollo Hospitals stock was trading 1.8% higher at ₹7,205 per share on the NSE.
The restructuring will be executed in multiple phases under a composite scheme of arrangement that was approved by the boards and audit committees of Apollo group entities in June 2025. A key objective of the reorganisation is to unlock shareholder value through the separate listing of the group’s omnichannel pharmacy and digital health businesses within the next 18–21 months.
Under the proposed structure, the identified business undertaking of Apollo Health Enterprise Ltd (AHEL) will first be demerged into Apollo Healthtech Ltd (AHTL). Subsequently, Apollo Healthco Ltd (AHL) and Keimed Pvt Ltd will be merged with AHTL, resulting in the consolidation of healthcare services, digital health, and pharmaceutical distribution businesses under a single entity.
Following these steps, the equity shares of Apollo Healthtech Ltd will be listed on the stock exchanges, subject to fulfilment of listing norms and statutory approvals. The NSE has stated that its observation letter will remain valid for six months, within which the scheme must be submitted to the National Company Law Tribunal (NCLT).
In the final phase, AHTL will acquire a 74.5% stake in Apollo Medicals Pvt Ltd (AMPL) from existing shareholders through a share purchase agreement. AHL operates the “Apollo 24|7” digital platform, while Keimed is engaged in wholesale and retail distribution of pharmaceutical products, medical equipment, and FMCG items.
Apollo Hospitals Enterprise Managing Director Suneeta Reddy earlier said the restructuring would allow shareholders to gain direct ownership in India’s largest omnichannel pharmacy and digital health platform.
Disclaimer:
This article is for informational purposes only and does not constitute investment advice.
