Apollo Hospitals Share Price Rises 4% as Board Approves Major Restructuring Plan

Market Performance

• Apollo Hospitals' share price surged as much as 4% to ₹7,555 on July 1, 2025, during intraday trading.
• At 9:20 am, the stock was trading at ₹7,492, up 3% on the NSE.
• Over the past three months, the share price has increased by 10%.

Main News: Board Clears Demerger of Digital & Pharmacy Business

Apollo Hospitals Enterprises announced a significant corporate restructuring move on July 1. The company's board, along with its subsidiary Apollo HealthCo, gave in-principle approval for a composite scheme of arrangement.

Key Highlights:

• Apollo will demerge its omnichannel pharmacy and digital health operations.
• The operations include its telehealth vertical and investment in Apollo HealthCo Ltd (AHL).
• These units will be carved out into a new entity (NewCo).
• Apollo HealthCo Ltd (AHL) will be merged into NewCo following the demerger.

Company Details: A New Healthcare Giant in the Making

The proposed restructuring will create a large-scale integrated pharmacy and digital healthcare platform in India.

What's Included in the New Entity (NewCo):

• Apollo HealthCo Ltd (AHL)
• Omni-channel pharmacy and telehealth operations
• Keimed Pvt Ltd, one of India's largest pharma wholesalers
• Apollo Medicals Pvt Ltd (AMPL), with NewCo acquiring the remaining 74.5% stake
• Apollo Pharmacies Ltd (APL), a 100% subsidiary of AMPL

This move consolidates control of the front-end pharmacy business under NewCo.

Notable Facts:

• NewCo will be classified as an Indian Owned and Controlled Company (IOCC).
• The company aims to secure a listing on Indian stock exchanges within 18–21 months, pending regulatory approval.
• Apollo Hospitals Enterprise Ltd (AHEL) will retain a 15% stake in NewCo to ensure seamless integration with its healthcare ecosystem.

Revenue & Growth Outlook (As Stated by Company)

• Target Revenue for NewCo by FY27: ₹25,000 Crore
• Distribution Model:
  • 7,000+ physical pharmacy outlets
  • Digital platform coverage across 19,000 pincodes

Summary of the Article

• Apollo Hospitals' share price rose sharply following the company's announcement of a major business restructuring.
• The board has cleared a plan to demerge and list its pharmacy and digital health verticals under a new entity, integrating Apollo HealthCo and Keimed Pvt Ltd.
• This new structure is intended to unlock value and streamline operations, with Apollo retaining a strategic stake to ensure ecosystem continuity.
• The company targets a ₹25,000 Crore revenue milestone for NewCo by FY27 and aims to enhance healthcare delivery across India through a powerful omni-channel presence..