Shares of India s Apollo Hospitals Enterprise fell as much as 8.4% on Monday, after the hospital chain sold a stake in its digital unit in a deal that brokerages said undervalued the subsidiary. .
Shares of Apollo Hospitals tumbled more than 8.30 per cent on Monday in a knee-jerk reaction to Rs 5738, with a total market capitalization less than Rs 85,000 crore.
Apollo HealthCo Ltd (AHL), a subsidiary of Apollo Hospitals Enterprise (AHEL), on Friday entered into a binding agreement to raise equity capital of Rs 2,475 crore from Advent International (Advent), one of the world s largest private equity (PE) players.
The transaction will also see the merger of two units under Apollo Healthco - its wholesale pharma distribution unit Keimed Pvt Ltd and online healthcare business Apollo 24 7.
The merger will take place in a phased manner over the next 24-30 months.
The combined entity is valued at Rs 22,481 crore, positioning it as a leading retail health company in India. The merger aims to deliver substantial industry benefits and a pan-India presence, enhancing access to genuine medicines for 1.4 billion Indians within 24 hours.