Apollo Hospitals Enterprises announced that it will buy a stake worth Rs 103.2 crore in its subsidiary, Apollo Health and Lifestyle (AHLL), through a rights issue.
A rights issue allows current shareholders to buy more shares at a discount, helping the company raise funds without new investors. Apollo Hospitals will acquire 35,12,107 shares of Rs 10 each at Rs 294 per share (including a premium of Rs 284), totaling Rs 1032.60 million.
AHLL, established in 2000, offers high-quality healthcare services through owned and franchised clinics and hospitals across India. These include specialty hospitals, maternity hospitals, clinics, diagnostic centers, sugar clinics, dental clinics, and dialysis centers. AHLL had a turnover of Rs 13,650 million for the financial year ending March 2024.
As AHLL is a subsidiary, this transaction is a related party deal and is conducted at arm’s length. The promoter group of Apollo Hospitals has no interest in AHLL beyond their existing shares. The acquisition will not change Apollo Hospitals’ control over AHLL.
This investment will support AHLL’s operations, working capital, and expansion plans. The acquisition is expected to be completed by this Monday.
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