Apollo Hospitals' Promoter Family Decide to Offload a Bit of Stake to Cut Off Debt
Updated On Jan 27, 2020
In the ongoing development, Apollo Hospitals Enterprise Ltd. reported its promoter Reddy family chose to offload a bit of its stake to pay off debt.
Suneeta Reddy, promoter family, sold through a bulk deal 3.6% stake in the hospital chain. Apollo Hospitals revealed that there would be no further offload of the promoter stake. At present, the stake remains at 30.8%.
The company, with the assistance of this bulk deal alongside its net proceeds from its insurance unit stake sale, Apollo Munich Health Insurance, will be able to cut down the obligation from current 76% to around 20%.
According to its yearly report released on 31 March 2019, the company had a net debt of around Rs. 3,327.40 Crore.
Prior in June 2019, there were updates on HDFC acquiring 50.8% stake of Apollo Munich from Apollo Hospitals Group and 0.4% from a few employees. By the end of next month, the proceeds related to this transaction is expected to be completed.
Apollo Hospitals is the single healthcare facility started in 1983 by Prathap C Reddy. In an official statement, Apollo Hospitals said after this advancement it would continue to concentrate on the development of all its three verticals - standalone pharmacies, retail and healthcare services.
As on 31 March 2019, Apollo Hospitals had 70 hospitals with 10,167 beds. The total pharmacy outlets across 20 states and 4 Union Territories remained at 3428.
A year prior, Apollo Hospitals chose to turn off its front-end retail store into Apollo Pharmacies Ltd. In the event, two of India’s well-known investment bankers and a private equity firm opted to acquire a majority stake in its retail pharmacy business.