Apollo Hospital Block Deal: Promoter To Offload Shares Worth Rs 1,394 Crore

Apollo Hospital Enterprises Ltd. promoter Suneeta Reddy Pottipatti will offload shares worth Rs 1,394.5 crore on Friday, in one or more deals, according to the term sheet accessed by NDTV Profit.

The promoter will offload 1.25% stake in the hospital chain, with Morgan Stanley as the sole bookrunner for the deal. The promoter firm has set the floor price at Rs 7,747 per share, which marks a 2.26% discount from the previous closing of Rs 7,926.50 per share.

According to BSE, Suneeta Reddy holds 48.34 lakh shares representing 3.36% stake in the company.

Apollo Hospitals posted a 42% rise in its net profit at Rs 433 crore in quarter ended June. This is in comparison to a profit of Rs 305 crore in the same quarter of the previous fiscal year.

Analysts tracked by Bloomberg expected the hospital chain to remain profitable, as they had a consensus estimate of Rs 377.2 crore.

Revenue increased by 14.9% year-on-year for the three months ended June, reaching Rs 5,842 crore. Operating income, or earnings before interest, taxes, depreciation, and amortisation, rose 26.2% year-on-year to Rs 852 crore. The Ebitda margin expanded to 14.6%.

The details of the upcoming block deal emerged after the market hours. The stock settled 0.47% lower at Rs 7920 apiece on the NSE, compared to a 0.13% advance in the benchmark Nifty 50.

Apollo Hospital's shares have risen 17.29% in the last 12 months and 8.55% year-to-date.

Out of 31 analysts tracking the company, 27 maintains a 'buy' rating, three recommend a 'hold' and one suggests 'sell', according to Bloomberg data. The average 12-month consensus price target of Rs 8,570.90 implies an upside of 8.1%.