Apollo Hospitals Enterprise Ltd (AHEL) is set to reinforce its hold on the healthcare sector through a strategic acquisition and significant capital investments. The company has announced the acquisition of a 31% stake in its subsidiary, Apollo Health and Lifestyle Ltd (AHLL), currently held by the International Finance Corporation (IFC), for ₹1,254 crore. This acquisition will elevate AHLL to a near-wholly-owned subsidiary, with AHEL directly controlling approximately 99.42% of the company, while the remaining shares will remain with the employee stock option pool. The transaction is contingent upon regulatory approval, including the Competition Commission of India, with expected completion by November 2025.
This strategic move is designed to streamline ownership and enhance operational efficiencies within AHEL's integrated healthcare portfolio. It also reflects a focused approach to optimise capital allocation, targeting high-potential segments within the group’s expansive healthcare services. Alongside this acquisition, Apollo Hospitals has revealed plans to invest ₹570-573 crore in establishing a new 100-bed Comprehensive Oncology Centre in Gurugram, underscoring the company’s commitment to expanding its cancer care capabilities and improving patient outcomes.
The acquisition and development initiatives align with Apollo Hospitals' broader strategy to consolidate its presence in the healthcare and lifestyle sector, making it more agile and better positioned to tap into emerging growth opportunities. The company’s acquisition bid follows a period of strengthening its healthcare services division, aimed at improving synergies across its portfolio and delivering enhanced value to shareholders.
Other companies announced notable developments on the same day, reflecting a vibrant business environment in India’s corporate sector. Vedanta Ltd resolved a long-standing dispute with SEPCO related to its power business, while Tata Technologies Ltd agreed to acquire a German engineering R&D firm for €75 million, a move expected to bolster its global footprint. In the healthcare segment, Yatharth Hospitals announced the acquisition of Shantived Institute of Medical Sciences in Agra for ₹260 crore, paralleling Apollo’s own expansion efforts.
Additional deals and contracts highlighted included SRF Ltd signing an MoU with Tata Steel SEZ to set up a chemicals capital expenditure project worth ₹282 crore, and Railtel Corporation of India Ltd securing a ₹210 crore project from Bihar Electricity Power Company. There were positive approvals in pharma as Alembic Pharmaceuticals received US FDA clearance for its API facilities, while Engineers India Ltd secured a ₹618 crore contract in Africa, reinforcing Indian companies’ growing international presence.
However, some firms faced challenges; Dr. Reddy’s Laboratories received a US FDA Form 483 with observations for its biologics facility, and JSW Energy Ltd’s appeal was rejected by the Central Electricity Regulatory Commission regarding tariff issues on a battery energy storage project. Info Edge disclosed an internal whistle-blower complaint concerning its real estate platform 99acres, prompting an independent investigation.
Together, these updates reflect ongoing dynamism and strategic repositioning across multiple sectors in India, with healthcare leaders like Apollo Hospitals actively reshaping their portfolios through acquisitions and large-scale investments to capture future growth.
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Source: Noah Wire Services