Apollo Hospitals to acquire Rs 103.2 crore stake in subsidiary Apollo Health
Jul 07, 2024
New Delhi [India], July 7 : Apollo Hospitals Enterprises has announced that it will acquire a stake worth Rs 103.2 crore in its subsidiary company, Apollo Health and Lifestyle.
This acquisition, aggregating Rs 1032.60 million (or Rs 103.2 crore), will be carried out through a rights issue.
A rights issue typically involves a company inviting its current shareholders to buy more shares at a discount. Shareholders get the right to purchase these new shares generally at a lower price than the market rate, which helps the company raise more money without bringing in new investors.
"We wish to inform you that the Company is acquiring 35,12,107 equity shares of Rs 10 each at a price of Rs.294 per share (including a premium of Rs.284 per share), aggregating to Rs. 1032.60 million by way of subscribing to the rights issue of Apollo Health and Lifestyle Limited, a subsidiary of the Company (AHLL)," the hospital chain company informed stock exchanges on Saturday.
Apollo Health and Lifestyle (AHLL), incorporated in 2000, is engaged in providing comprehensive, high-quality healthcare services by establishing owned and franchised clinics and hospitals across India. Its principal activities include the operation of specialty hospitals, maternity hospitals, clinics, diagnostic centers, sugar clinics, dental clinics, and dialysis centers.
The turnover of AHLL for the financial year that ended in March 2024 was Rs 13,650 million.
"AHLL, being a subsidiary, is a related party of the Company. The transaction falls within the ambit of related party transactions and is at arm's length," the company informed stock exchanges.
"Except to the extent of shares held by the Company in AHLL, the promoter/promoter group/group companies of the Company have no interest in AHLL."
"There will be no change in the shareholding of the Company in AHLL. AHLL will continue to remain a controlled subsidiary of the Company."
The acquisition will support AHLL's business operations, working capital, and expansion, it said. The completion of the acquisition process is expected by this Monday.
