Apollo Hospitals Acquires Stake Worth Rs 1,254 Crore In Subsidiary; Sets Up Rs 573-Crore Oncology Centre
Apollo Hospital aims to double the scale of its oncology business to over Rs 5,000 crore in 3-4 years.
Apollo Hospitals Enterprise Ltd. on Friday announced that it will acquire 31% stake held by International Finance Corporation in Apollo Health and Lifestyle Ltd., the company's subsidiary, for Rs 1,254 crore. Following the transaction, Apollo Health and Lifestyle will become a 100% subsidiary of the company with 99.42% stake and balance in the ESOP pool.
The company, after the acquisition, plans to focus on primary care and diagnostics, birthing and women's health centres, ambulatory care centres and dialysis and dental networks.
"This acquisition is a decisive step that will allow for sharper capital allocation and a greater focus on select high-potential segments. With disciplined growth, improved profitability, and enhanced return on capital employed, we see AHLL becoming a value-accretive driver in Apollo's integrated healthcare portfolio," Suneeta Reddy, managing director at Apollo Hospitals Enterprise.
The hospital also announced plans to set up 100-bed comprehensive oncology centre at Gurugram for Rs 573 crore. The centre will be set up in two phases, with the first phase expected to be completed by the end of the fourth quarter of this fiscal or the first quarter of the next financial year. In the second phase the Proton & Integrated Cancer Centre will be opened. The project is expected to be completed over the next four years.
Proton therapy is an effective treatment primarily for tumors in Paediatric, Head and Neck, Central Nervous System, Bone and soft tissue, Prostate and a wide range of other tumors.
Apollo aims to double the scale of its oncology business to over Rs 5,000 crore in 3-4 years, driven by high-end personalised care, precision medicine, and deeper penetration into India's largest metros, along with expansion of footprint in other cities.
Apollo Hospitals Share Price
The business update was shared aftermarket hours. The stock settled 0.06% lower at Rs 7,874.50 apiece on the NSE, compared to a 0.43% advance in the benchmark Nifty 50.
Apollo Hospital shares have risen 11.51% in the last 12 months and 7.92% year-to-date.
Out of 32 analysts tracking the company, 28 maintain a 'buy' rating, three recommend a 'hold' and one suggests 'sell', according to Bloomberg data. The average 12-month consensus price target of Rs 8,573.37 implies an upside of 8.9%.
