Pratap Reddy’s Apollo Group Undertakes Family Ownership Restructuring Through Demerger

Apollo Hospitals, founded by Dr. Pratap Reddy, has announced a family ownership restructuring following the recent demerger of its healthtech business from the country’s largest hospital chain.

Dr. Pratap Reddy has four daughters: Suneeta Reddy, Preetha Reddy, Sangita Reddy, and Shobana Kamineni. Currently, Dr. Reddy serves as founder chairman of Apollo Hospitals Enterprise Ltd. Preetha Reddy is the executive vice chairperson, Suneeta Reddy is the managing director, and Sangita Reddy is the joint managing director. Shobana Kamineni is the promoter director of Apollo Hospitals Enterprise Ltd. and executive chairperson of Apollo Health Co. and Apollo Pharmacies Ltd.

As part of the restructuring, the flagship hospitals business will continue to be managed by Preetha, Suneeta, and Sangita Reddy, while Shobana Kamineni will lead the newly formed Apollo HealthTech company.

The new entity will be called Apollo Health Technology, said Suneeta Reddy, managing director of Apollo Hospitals Enterprise. “Shobana, my sister, who has led this business, will be the executive chairperson of the new entity. Sangita, who is on the board of Apollo Hospitals, will also serve on the board of the new company, which will have four independent directors,” she added.

Sangita Reddy will represent Apollo Hospitals on the board of the new company.

The composite scheme is expected to be completed over the next 18–21 months, with the new company likely to be listed by February 2027. The scheme involves demerging the omni-channel pharmacy business, Apollo 24x7, and the remote telehealth division into the new company, which will subsequently acquire a majority stake in the front-end retail pharmacy chain Apollo Pharmacy—ensuring it remains Indian-owned and operated in compliance with single-brand retail regulations.

The new company, which combines omni-channel pharmacy distribution with a digital health platform, recorded revenues of around Rs 16,300 crore in FY25 and is projected to reach Rs 25,000 crore by FY27, with an estimated operating margin of 7% at the time of listing.

Private equity investor Advent, which recently invested $300 million in the group, will hold a 12.1% stake in the new entity. Apollo Hospitals will own 17%, while the Kiemed promoters and other shareholders will hold 25.3%. Apollo Hospitals shareholders will collectively own 42.1% of the new company, directly and indirectly through Apollo Hospitals Enterprise.

Currently, the Reddy promoters own 29.34% of Apollo Hospitals, including nearly 19% held through their investment arm, PCR Investments Ltd., and 10.95% held directly by family members. Shobana Kamineni and her children directly hold a 1.9% stake in Apollo Hospitals.

As part of the reorganisation, Advent will share a portion of their returns beyond a specified threshold with Shobana Kamineni and certain employees of Apollo Hospitals Enterprise.