Apollo Hospitals block deal: Promoter group to trim debt, rules out more stake sale
The sale proceeds, Apollo Hospitals Enterprises said, would be utilised to pare down outstanding debt of the promoter group.
- Aug 22, 2025,
- Updated Aug 22, 2025 11:21 AM IST
Apollo Hospitals Enterprises on Friday said one of its promoters Suneeta Reddy sold 1,897,239 equity shares, amounting to 1.3 per cent of the stake in the healthcare provider, through a block deal on the stock exchanges today, at a price of Rs 7,850 per share. This was done at a discount of 1 per cent to the closing price yesterday.
Post this transaction, the total promoter holding in the Apollo Hospitals Enterprises has come down to 28 per cent from the current 29.3 per cent. The pledged holdings of the promoter group as a percentage of their total holding will also reduce to 2 per cent from 13.1 per cent.
The sale proceeds, Apollo Hospitals Enterprises said, would be utilised to pare down outstanding debt of the promoter group.
"Subsequent to the sale, the promoter group holding in Apollo Hospitals will reduce to 28 per cent (from the current 29.3 per cent) and pledged holdings of the Promoter Group (as a percentage of their total holding) will reduce from 13.1 per cent to -2 per cent. The transaction fulfils a commitment made to investors to reduce the pledge," Apollo Hospitals said.
Morgan Stanley India Company Private Limited acted as a selling broker to the sale.
"The Promoter group continues to stay fully focused on the growth of Apollo Hospitals, Apollo Health Co and Apollo Health and Lifestyle - to create long-term value in each vertical, reiterating their commitment towards high-quality healthcare for every Indian. The Promoter Group does not have any plan of any further stake reduction in the foreseeable future," Apollo Hospitals said.
On Friday, Apollo Hospitals Enterprise shares were trading 0.10 per cent lower at Rs 7,917. Apollo Hospitals, India’s largest integrated healthcare provider, operates 45 owned and six managed hospitals with a total capacity of 10,187 beds. The company has rolled out an ambitious expansion plan to add 4,372 beds across the country over the next four years, with a capex of over Rs 7,600 crore — of which about Rs 2,000 crore has already been spent.
Structurally, cost reduction drives, expanding of complex procedures and profitability of new hospitals remain key management focus areas, ICICIdirect said.
"The company also plans to unlock Apollo HealthCo after merging the same with Keimed, a promoter-owned entity focusing on wholesale pharmacy business. The merged entity is expected to be listed in 15-18 months and this new scheme of arrangement will enable shareholders of Apollo Hospitals to directly have ownership in the merged entity. This proposed unlocking is likely to create the largest Indian listed omni channel pharmacy distribution and digital platform company," the brokerage said.
Apollo Hospitals Enterprises on Friday said one of its promoters Suneeta Reddy sold 1,897,239 equity shares, amounting to 1.3 per cent of the stake in the healthcare provider, through a block deal on the stock exchanges today, at a price of Rs 7,850 per share. This was done at a discount of 1 per cent to the closing price yesterday.
Post this transaction, the total promoter holding in the Apollo Hospitals Enterprises has come down to 28 per cent from the current 29.3 per cent. The pledged holdings of the promoter group as a percentage of their total holding will also reduce to 2 per cent from 13.1 per cent.
The sale proceeds, Apollo Hospitals Enterprises said, would be utilised to pare down outstanding debt of the promoter group.
"Subsequent to the sale, the promoter group holding in Apollo Hospitals will reduce to 28 per cent (from the current 29.3 per cent) and pledged holdings of the Promoter Group (as a percentage of their total holding) will reduce from 13.1 per cent to -2 per cent. The transaction fulfils a commitment made to investors to reduce the pledge," Apollo Hospitals said.
Morgan Stanley India Company Private Limited acted as a selling broker to the sale.
"The Promoter group continues to stay fully focused on the growth of Apollo Hospitals, Apollo Health Co and Apollo Health and Lifestyle - to create long-term value in each vertical, reiterating their commitment towards high-quality healthcare for every Indian. The Promoter Group does not have any plan of any further stake reduction in the foreseeable future," Apollo Hospitals said.
On Friday, Apollo Hospitals Enterprise shares were trading 0.10 per cent lower at Rs 7,917. Apollo Hospitals, India’s largest integrated healthcare provider, operates 45 owned and six managed hospitals with a total capacity of 10,187 beds. The company has rolled out an ambitious expansion plan to add 4,372 beds across the country over the next four years, with a capex of over Rs 7,600 crore — of which about Rs 2,000 crore has already been spent.
Structurally, cost reduction drives, expanding of complex procedures and profitability of new hospitals remain key management focus areas, ICICIdirect said.
"The company also plans to unlock Apollo HealthCo after merging the same with Keimed, a promoter-owned entity focusing on wholesale pharmacy business. The merged entity is expected to be listed in 15-18 months and this new scheme of arrangement will enable shareholders of Apollo Hospitals to directly have ownership in the merged entity. This proposed unlocking is likely to create the largest Indian listed omni channel pharmacy distribution and digital platform company," the brokerage said.