Apollo Hospitals Share Price Rises Nearly 2% After NSE Approves Demerger

Apollo Hospitals Share Price Rises Nearly 2% After NSE Approves Demerger

Apollo Hospitals Enterprise Ltd shares saw a notable uptick on Wednesday, December 24, as the National Stock Exchange (NSE) issued a 'no-objection' observation letter for the company’s multi-layered restructuring plan. The news injected fresh momentum, lifting Apollo Hospitals share price in early trade even as the broader stock market today remained largely steady.

Market Performance

At 11:40 am on December 24, Apollo Hospitals shares were trading 1.8% higher at ₹7,205. The move reflects investor interest following regulatory approvals for the company’s strategic restructuring of its pharmacy and digital health businesses.

The rise comes after the company had already secured Competition Commission of India approval in September, setting the stage for the next steps in the reorganisation.

Main News: NSE Approves Restructuring Plan

The restructuring of Apollo Hospitals will follow a composite scheme of arrangement, approved by the boards and audit committees of Apollo group entities in June 2025. The plan is aimed at separating key business segments while streamlining operations and consolidating healthcare and distribution businesses.

Key steps include:

  • Demerger of Apollo Health Enterprise Ltd (AHEL): The identified business undertaking of AHEL will be transferred into Apollo Healthtech Ltd (AHTL).
  • Merger of Apollo Healthco Ltd (AHL) and Keimed Pvt Ltd: Both entities will be merged into AHTL, consolidating healthcare and distribution operations.
  • Listing of AHTL Shares: Following these mergers, the equity shares of Apollo Healthtech Ltd will be listed on the stock exchanges, subject to statutory and exchange requirements.
  • Acquisition of Apollo Medicals Pvt Ltd (AMPL): AHTL will acquire 74.5% stake in AMPL from existing shareholders, enhancing the reach of Apollo’s digital health and pharmacy operations.

The NSE observation letter is valid for six months from issuance, within which the scheme must be submitted to the National Company Law Tribunal (NCLT).

Company Details: Unlocking Value Through Reorganisation

Apollo Hospitals Enterprise has been working on this strategic restructuring since June 2025, with the aim of unlocking shareholder value and creating a more focused operational structure.

  • Apollo 24|7 Platform: Operated by AHL, it enables doctor consultations, diagnostic bookings, and pharmacy distribution services.
  • Keimed Pvt Ltd: Engages in wholesale and retail distribution of pharmaceutical products, medical equipment, and FMCG items.

MD Suneeta Reddy highlighted that the restructuring allows shareholders to gain direct exposure to the country’s largest omnichannel pharmacy and digital health platform, strengthening Apollo’s position in healthcare and distribution markets.

Summary

Apollo Hospitals share price has gained momentum after NSE approval of the demerger and restructuring plan. The phased demerger and merger steps will consolidate Apollo’s healthcare and pharmacy businesses under Apollo Healthtech Ltd, with eventual listing on the stock exchanges.

With this strategic move, Apollo Hospitals not only strengthens its business structure but also creates opportunities for investors to directly participate in India’s rapidly expanding digital healthcare and pharmacy ecosystem.

Source: Moneycontrol

Download the Samco Trading App

Get the link to download the app.

Samco Fast Trading App

Leave A Comment?