Apollo Hospitals - Stake Sale In Apollo HealthCo + Keimed Merger, A Positive Step: Prabhudas Lilladher

Prabhudas Lilladher Report

Apollo Hospitals Enterprise Ltd.’s 100% subsidiary “Apollo HealthCo” has entered into agreement to raise equity capital of Rs 24.75 billion ($300 million) from Advent International (Advent) for 16.8% stake.

In addition, Apollo HealthCo has also proposed integration of promoter group entity Keimed Pvt. Ltd. (Keimed) into Apollo HealthCo in phased manner.

This will create leading integrated pharmacy distribution business complemented by fast growing omnichannel digital health business.

While stake sale of Apollo HealthCo to Advent was done below our estimates by $0.8- 0.9 billion; likely merger of Keimed with Apollo HealthCo is a positive step and removes overhang of any leakage.

Further management guidance of Rs 17.5-20 billion Ebitda of merged entity by FY27 provides comfort.

Maintain Buy rating with target price of Rs 7,050/share.

Click on the attachment to read the full report: 

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.