Archive · 2 Jul 2025
Apollo Hospitals Restructures, Focuses on Hospital and Pharmacy Businesses
Apollo Hospitals is splitting into two parts: hospitals and pharmacies.
Shareholders will now directly own shares in the pharmacy business, called Apollo Healthco, which includes online and offline pharmacies, and digital consultations.
This change should let the hospital and pharmacy teams focus better on their businesses.
The pharmacy business aims to increase its sales significantly in the next two years.
The stock price rose after the announcement because of potential growth in both businesses.
Shareholders can choose to invest in either the hospital or pharmacy businesses.
Apollo Hospitals is restructuring its corporate structure, giving shareholders direct ownership of Apollo Healthco Ltd.
Apollo Healthco will include online, offline, retail, and wholesale pharmacy segments, along with the Apollo 24|7 digital consultation business.
Apollo Hospitals shareholders will receive 195.2 shares of Apollo Healthco for every 100 shares they hold.
The management aims for Apollo Healthco to achieve ₹25,000 crore in operating revenue by FY27.
The restructuring aims to allow focused management of the hospital and pharmacy businesses.
- Who
- Apollo Hospitals Enterprise Ltd and its shareholders.
- What
- Apollo Hospitals is restructuring its corporate structure.
- When
- The announcement was made recently; listing is expected in 18-21 months.
- Where
- India
- Why
- To allow focused management of hospital and pharmacy businesses and unlock value.
Potential for Growth
Focused Management
Growth Prospects
Potential for Growth
Apollo Healthco's growth depends on management's ability to achieve targets; Analysts assigned EV/EBITDA multiples reflect positive growth potential.
Focused Management
Standalone Apollo Hospitals have strong growth prospects, largely from capacity additions.
- Apollo Healthco Shares
- 667 million
- Share Exchange
- 195.2 shares for every 100 held
- Apollo Healthco Revenue FY25
- ₹16,377 crore (pro forma)
- Apollo Healthco Revenue Target FY27
- ₹25,000 crore
- Apollo Hospitals Market Cap
- ₹1.08 trillion
- Apollo Hospital Beds
- 8,025 (FY25 end)