Post-acquisition, there will be no change in the shareholding pattern of Apollo Hospitals in AHLL, ensuring that it remains a subsidiary. Credit: MacroEcon / Shutterstock.

Indian hospital chain Apollo Hospitals Enterprise has announced the acquisition of a stake valued at Rs1.03bn ($12.37m) in its subsidiary, Apollo Health and Lifestyle (AHLL), through a rights issue.

The deal involves the acquisition of 35,12,107 equity shares of AHLL for Rs294 per share.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The rights issue is a way for Apollo Hospitals to raise additional capital by offering its current shareholders the opportunity to purchase additional shares at a discounted rate, the Economic Times reported.

AHLL operates a network of speciality and maternity hospitals, diagnostic centres, clinics and other healthcare facilities.

For the financial year ending 31 March 2024, AHLL reported a turnover of Rs13.65bn.

This strategic move aims to boost AHLL’s capabilities to provide quality healthcare services across India.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The deal will also enable AHLL to utilise the funds for business operations, working capital, and expansion.

Apollo Hospitals’s shareholding pattern in AHLL will remain unchanged post-acquisition, ensuring that it remains a subsidiary.

In a stock exchange filing, the company said: “AHLL, being a subsidiary, is a related party of the company. The transaction falls within the ambit of related party transactions and is at arm’s length.”

In June this year, Apollo Hospitals Enterprise subsidiary Apollo HealthCo revealed plans to open three new hospitals in Mumbai and Bengaluru, India.

Two hospitals in Mumbai, each with 500 beds, will be constructed with an investment of around Rs20bn.

A 400-500-bed facility is planned for Bengaluru.

The expansion is part of Apollo Hospitals’ long-term strategy to invest approximately Rs30bn over three years to add 2,400 beds across various locations.