as per annexure enclosed
Awaiting price reaction for this filing.
Apollo Hospitals Enterprise Limited (AHEL) has announced a Composite Scheme of Arrangement to demerge its Omnichannel Pharmacy Distribution (OCP), Apollo 24|7 digital platform, and remote telehealth division into a New Co, and simultaneously merge Keimed (India's largest pharma distributor) into the same New Co. The combined entity is projected at ~INR 16,267 Cr revenue in FY25, with a target run-rate of ~INR 25,000 Cr (~US$3 bn) revenue and ~7% EBITDA margin by FY27 exit. AHEL shareholders will receive 195.2 shares of New Co for every 100 shares held, with ~66.7 crore shares outstanding post-scheme at FV of Rs 2. Advent has already invested INR 2,475 Cr (US$300 mn) across two tranches (Sep 2024 and Mar 2025), and AHL acquired 11.2% in Keimed in March 2025. Post-scheme, New Co is targeted to be listed on stock exchanges within 18-21 months, with shareholder approval expected around Feb 2026 after SEBI, CCI, and NCLT approvals.
The restructuring is aimed at unlocking value by creating a separately listed digital health and pharmacy distribution champion, eliminating any hold-co discount and giving AHEL shareholders direct participation. It sharpens capital allocation focus between healthcare services (AHEL) and the omnichannel pharmacy/digital vertical. Near-term, the stock could see volatility around scheme milestones (SEBI/CCl/NCLT approvals), with potential re-rating subject to successful execution of the ~7% EBITDA margin and ~Rs 25,000 Cr revenue targets by FY27.